Pandemic drives e-commerce boom in Malaysia

International e-wallets such as Google Pay and Masterpass are gaining steam.

The COVID-19 pandemic has ramped up the adoption of online payment platforms in Malaysia as consumers gradually switch from offline to online purchases, according to data and analytics company GlobalData.

The local e-commerce market is estimated to register 24.7% growth in 2020. The market is expected to reach $12.6b (MYR51.6b) by 2024, increasing at a compound annual growth rate (CAGR) of 14.3% between 2020 and 2024.

It got a further boost thanks to the government’s $34.2m (MYR140m) three-month campaign to drive e-commerce adoption amongst small merchants and help widen their reach across the country, which began in June.

Furthermore, consumers are increasingly cautious of contracting the virus through cash handling and visiting physical stores, especially with the COVID-19 outbreak still ongoing, said Nikhil Reddy, banking and payments analyst at GlobalData.

“Malaysia is amongst the fastest-growing e-commerce markets in Southeast Asia, driven by rising Internet and smartphone penetration, growing middle class population and tech-savvy millennials,” Reddy said.

According to GlobalData’s 2020 banking & payments survey, payment cards is the most preferred payment method for e-commerce purchases in Malaysia, accounting for 40.3% share by value in 2020.Alternative payment methods are also gaining prominence with combined market share of 25.3%.

Whilst this space is mainly driven by domestic players—such as Boost, Touch N Go, GrabPay—international payment solutions like Google Pay, Masterpass and Visa Checkout are gaining popularity.

"Malaysian e-commerce market has been registering growth during the last few years, which has been further accelerated by the COVID-19 pandemic. This, coupled with the growing consumer preference for online shopping, availability of customized online payment options and government support, will further drive e-commerce market in Malaysia,” Reddy concluded.

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The proposal is expected to be completed in 2022.
Its location is expected to be renovated to make way for a haute restaurant complex.
The volume of parcels shipped to South Korea was the highest amongst all countries.
And China’s state-owned paper rebukes Canada Goose over alleged consumer law violation.
These stores will sell a variety of household goods and beauty products.
Over 50% of the Chinese consumers engaged in sharing economy in 2019.
These mega trends include the rise of smart cities and homes, and shifting market frontiers, among others. 
By 2026, e-commerce exports revenue is expected to skyrocket to $3.5b.
Demand for air cargo will likely rise at a faster rate than the supply until 2022, UPS said.
The system can detect customers collapsing or signs of property damage.
The company noted that luxury beauty items tend to be popular on Black Friday.
The development seeks to be a gathering place for leisure, entertainment, and retail in India.
Alibaba has expressed plans to roll out green-shelf spaces across its platforms.
The store will be an upgraded version of JD’s E-space omni-channel store.