Digital development has been increasing
About 91 percent of the Malaysian population are active internet users and the population has a high rate of mobile phone usage . With a total of population of around 30 million, Malaysia is an appealing market for e-commerce in Southeast Asia because of its fast-growing economy and advanced infrastructure for digital technologies. Until today, Malaysia has built around 200 industrial estates zoned and prepared for industrial development, together with specialized parks such as Technology Park Malaysia and Kulim Hi-Tech Park. Along with the ongoing development, the e-commerce market in Malaysia has been increasing faster than ever.
Challenges for e-commerce players
However, there are still challenges for this market in the country. Traffic congestion is one of the biggest challenges for shipping e-commerce products across the country. E-commerce platforms in Malaysia have also been dealing with online payment frauds. As 20 percent of online shoppers pay with credit cards, this issue could negatively impact the e-commerce market potential. Some online merchants offer a cash-on-delivery (COD) option to prevent credit card or online payment fraud from occurring. The online-to-offline (O2O) strategy has also been beneficial for larger e-commerce stores. The solutions can vary from offering free samples to arranging product bookings so the customer can try products on their own first.