The Rapid Growth of Malaysia’s E-Commerce
Malaysia’s e-commerce is on a growth trajectory and has already started benefiting the country following the full implementation of 13 key programmes under the National eCommerce Strategic Roadmap’s (NeSR) six thrust areas.
International Trade and Industry Minister Darrell Leiking said e-commerce value added and contribution to the gross domestic product in Malaysia continuously improved over a period of seven years to RM85.8 billion in 2017 from RM37.7 billion in 2010, with an average annual growth rate of 12.5 per cent.
“While the annual percentage change for the period 2015 to 2016 was just 9.9 per cent, 2017 saw a remarkable jump to 14.3 per cent as a result of the nation’s efforts in strengthening the e-commerce industry.
“The National eCommerce Council (NeCC) headed by both MITI and MDEC is committed to take the (e-commerce) industry a level higher.
“We will continue to chart the growth and development of e-commerce in the country,” he said in a joint statement from the Ministry of International Trade and Industry (MITI) and Malaysia Digital Economy Corporation (MDEC) after chairing the NECC meeting here today.
The meeting discussed the NeSR’s progress on the implementation of the National eCommerce Strategic Roadmap (NeSR) and matters pertaining to enhancement of the competitiveness of the e-commerce ecosystem.
It was attended by officials from 28 ministries and agencies, including the NECC, the Entrepreneur Development Ministry and the National Cyber Security Agency.
Since its establishment in 2016, the NECC’s achievements in developing and enhancing the e-commerce ecosystem’s competitiveness included registering over 120,000 online businesses the Companies Commission of Malaysia.
“Small and medium enterprises (SMEs) registered with the ‘Go eCommerce’ platform aimed at guiding companies in e-commerce adoption exceeded 20,000.
“The implementation of the Digital Free Trade Zone (DFTZ) pilot project has accelerated the growth of e-commerce activities by providing a platform for local SMEs and enterprises to conduct their business and services,” the statement said.
MDEC Director of eCommerce, Song Hock Koon said the DFTZ has shown a positive impact in realising the national objective of increasing SMEs participation in cross-border e-commerce transactions.
“Since the implementation of the (DFTZ) pilot project, more than 5,000 Malaysian SMEs have registered with and started exporting through the Alibaba.com platform.
“The government remains steadfast in encouraging other industry players such as e-marketplaces, and local and international logistics players to participate in the DFTZ,” he said.
On Nov 12, 2018, Malaysia signed the ASEAN Agreement on Electronic Commerce, a concerted effort between 10 countries to smoothen cross border e-commerce transactions by reducing barriers and lowering entry costs.