Greater tech capabilities will boost Malaysia’s e-commerce growth in 2020
ASIA is eager to elevate the performance of its e-commerce industry as residents prefer to shop online.
In Malaysia, the government is keen to support the e-commerce sector through its National E-commerce Strategic Roadmap where measurable efforts will be made to boost overall growth.
The advancement in technology capabilities has been the key building block for the sector recently with forecasts suggesting that the local e-commerce industry will grow by up to 30 percent next year.
One particularly effective move by the government is to extend and strengthen broadband connectivity across rural areas.
With greater connectivity and seamless e-commerce facilities, the digital shopping experience will be significantly enhanced alongside the increasing number of online users in the country.
During a recent event, E-commerce Malaysia Chairman Ganesh Kumar Bangah said, “Currently, we are seeing more people buying online and trusting e-commerce sites. More merchants are also starting to sell their products online.”
Another driver of growth is the rise of e-wallets in the country which is a sound move seeing that e-commerce’s online banking transactions have reached an inflection point.
Bangah commented that e-wallet systems “will further strengthen the growth of secure and seamless e-commerce industry” as reliable payment systems augment the overall e-commerce experience.
Additionally, the growth of e-commerce will be supported by improved logistics capabilities and a maturing SME community in the country.
With more SMEs gaining greater accessibilities to digital platforms, a higher number of SME products will be available online, creating more sales opportunities.
Bangah applauded the progress being made. “SMEs are getting better at selling their products online. They are getting smarter and spending on the right avenues such as digital marketing and influencers.”
Online shoppers, including those from rural areas, will be more invested in purchasing locally as the portfolio of products available are not only more enriched but also seemingly ‘within reach’.
According to The National Tech Association of Malaysia Chairman Danny Lee, the sector has accumulated revenues of US$27.7 billion last year — with a compound annual growth rate of 11 percent.
Over 20 million online consumers contributed directly to the revenue.
The country continues to acknowledge the significance of supporting its e-commerce growth with the right digital advances as it understands that the platforms that are stable and reliable can stimulate revenue opportunities and enrich the economy.