E Commerce Malaysia Guide Report

E-COMMERCE
IN MALAYSIA
A Guide for Australian Business
E-Commerce in Malaysia 1
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Publication date: May 2020
Job: 18-19-367
2 E-Commerce in Malaysia
CONTENTS
Executive summary 05
Malaysia’s e-commerce landscape 06
Size and growth of the market 06
Market trends 06
Key drivers of Malaysian e-commerce growth 09
Stakeholder insight – TIGAS Alliance Group 10
Major players in Malaysian e-commerce 11
Malaysia’s e-commerce platforms 12
E-commerce marketplaces 13
Specialised e-commerce platforms 14
Integrating with Malaysia’s e-commerce platforms 15
Stakeholder insight – Momentum Commerce 16
Understanding Malaysia’s online consumers 18
What products are people buying? 18
Stakeholder insight – Growth from Knowledge 20
Entry points for Australian business 21
Approaches for accessing the market 22
Logistics 23
Digital Free Trade Zone 23
Stakeholder insight – JANIO Asia 24
Understanding Malaysia’s regulations 25
Product registration 25
Product certification 26
Government policy and regulation frameworks 26
National eCommerce Strategic Roadmap 27
Policy implications for Malaysia 27
Relevant organisations 27
How Austrade can help 29
About this report

'E-commerce in Malaysia: a guide for Australian business' was prepared in consultation with Matryzel Consulting Sdn
Bhd.
EXECUTIVE
SUMMARY
As Malaysia continues its push towards a digital economy, the digital sector is forecast to make up 20 per cent of the
GDP by 2025. With a substantial and growing consumer market and a mobile penetration rate of 144 mobile devices
per 100 people (DFAT, 2019), opportunities in e-commerce are significant. Home to the largest e-commerce platform in
Southeast Asia (Lazada), Malaysia can be considered as an entry point for cross-border opportunities to other regional
markets. Malaysia has built cross-border logistics facilities (Digital Free Trade Zone) in order to enhance its potential to
fulfil across ASEAN.
Continuous income growth has led to significant growth in online retail sales, which are expected to grow to
RM24.9 billion (A$8.7 billion) by 2020, supported by higher income among Malaysians. The top three product
categories with the highest potential for Australian businesses are: fashion and cosmetics, sports-related goods, and
food and groceries (DFAT, 2019).
Austrade Malaysia’s in-house research conducted for this guide found that:
Malaysia has the highest rate of smartphone possession Malaysia is facing an upward trend in e-commerce
in ASEAN, with smartphones increasingly becoming the for the period 2018 to 2023, with sales for 2019
main driver of online sales. estimated to be worth A$12.1 billion (Euromonitor, Malaysia
E-commerce, 2013-2023).
Malaysians shop online mainly for foreign brands, with Within Southeast Asia, Malaysians, Thais and
foreign purchases outstripping domestic purchases by Singaporeans are most receptive to shopping online for
31.2 per cent (Euromonitor, Malaysia E-commerce, 2013- foreign brands and hold potential for Australian brands
2023). to tap into.
There is an opportunity for Australian products under the Understanding the regulatory landscape is important to
Malaysia-Australia Free Trade Agreement (MAFTA) – 99 ensuring a smooth trading relationship with the market,
per cent of products are tariff free. including import requirements and halal certification.
MALAYSIA’S
E-COMMERCE LANDSCAPE
Size and growth of the market

Malaysia’s internet infrastructure, youthful, tech-savvy population and rising mobile/broadband penetration rates all
point to strong potential for the country’s e-commerce market. Smartphones will become an increasingly important
driver of online sales, however, high-value orders will continue to be mostly transacted via PCs.
Malaysia’s e-commerce sector is growing, with consumers beginning to warm up to the idea of technology-enabled
payment systems, from traditional internet banking to mobile financing. Consumer purchasing habits are evolving,
supported by the Malaysian Government’s National e-commerce Strategic Roadmap, which seeks to promote growth
in online retail and attract investment in the sector from global players.
Market trends
1. From 2018 to 2019, Malaysia had the biggest increase in total e-commerce activities (46.5 per cent) in ASEAN,
followed by Indonesia (28.1 per cent) and Thailand (17.3 per cent).
2. For the period 2018 to 2023, Malaysia is forecast to have the highest growth rate (35 per cent) for total
e-commerce activities in ASEAN, followed by Indonesia (26.9 per cent) and Thailand (17.9 per cent).
Figure 1 — Online retail value across ASEAN
6,000.0 40.0
Retail value in MYR (million)
35.0
5,000.0
30.0
4,000.0
25.0
3,000.0 20.0
15.0
2,000.0
10.0
1,000.0 5.0
0.0 0.0
Indonesia Malaysia Singapore Thailand Vietnam
4,304.9 2,036.9 1,040.8 2,008.8 2,323.3 2,186.2
5,518.5 2,985.3 1,243.2 2,601.0 2,725.9 2,546.5
24.3 32.5 21.3 19.0 14.6 36.8
26.9 35.0 20.5 17.8 17.9 15.8
2018 actual 2019 forecast 2013-2018 CAGR 2018-2023 CAGR

Source: Euromonitor, Malaysia E-commerce, 2013–2023
3. From 2018 to 2019, Malaysia had the biggest increase in foreign e-commerce activities (54.9 per cent) in ASEAN.
This indicates that Malaysians are increasingly inclined to shop online for foreign brands.
4. For the period 2018 to 2023, Malaysia is forecast to have the highest growth rate (41.2 per cent) for foreign
e-commerce activities in ASEAN.
Figure 2 — Foreign online retail value across ASEAN
1,800.0 45.0
1,600.0
40.0
1,400.0 35.0
1,200.0 30.0
1,000.0 25.0
800.0 20.0
600.0 15.0
400.0 10.0
200.0 5.0
0.0 0.0
215.2 156.8 462.0 873.0 426.3
320.1 1,694.1 178.0 624.2 1,082.9 483.8
38.8 36.1 16.5 20.1 17.7 31.8
39.4 41.2 18.4 21.1 23.2 13.9

5. For the period 2018 to 2023, Malaysia is forecast to have the highest growth rate (50.4 per cent) for mobile
e-commerce activities in ASEAN.
Figure 3 — Mobile online retail value across ASEAN
5,000.0 160.0
4,500.0
140.0
4,000.0
120.0
3,500.0
3,000.0 100.0
2,500.0 80.0
2,000.0 60.0
1,500.0
40.0
1,000.0
500.0 20.0
0.0 0.0
3,501.8 720.3 677.9 1,207.3 1,045.5 983.8
4,623.7 1,206.4 836.5 1,651.6 1,308.4 1,196.9
89.0 42.0 63.8 31.7 85.9 150.2
29.5 50.4 24.6 20.8 23.6 19.2

6. Mobile e-commerce is one of the future key contributors to e-commerce in Malaysia due to high internet
penetration and increasing smartphone possession.
Figure 4 — Smartphone possession across ASEAN
100.0 18.0
90.0 16.0
80.0 14.0
70.0
12.0
60.0
10.0
% of household
50.0
8.0
40.0
6.0
30.0
20.0 4.0
10.0 2.0
0.0 0.0
56.7 74.7 56.2 70.2 62.0 60.8
62.2 78.8 61.7 74.9 67.5 66.5
15.2 10.3 15.7 11.5 14.7 15.4
6.9 3.7 7.1 4.6 6.2 6.5

Key drivers of Malaysian e-commerce growth
Malaysia’s internet and mobile connectivity, coupled with public sector support, have seen steady growth in the
country’s e-commerce market. Revenue from e-commerce is forecast to increase by a compound annual growth rate
(CAGR) of 17.6 per cent from 2018 to 2022, resulting in a potential market volume of US$2.6 billion by 2022.1
A number of key events have contributed to the growth of the region’s e-commerce market, including Amazon’s long-
awaited entrance in Singapore; the fast rise of Shopee’s Mobile-First platform; the A$330 million record-breaking sales
of Lazada’s Online Revolution Campaign; and the increasing capital deployed by China’s Alibaba and Tencent in an
attempt to dominate the market.
Rising incomes, growing smartphone and internet penetration, and government support are all factors that will help
grow Malaysia’s online market from 0.5 per cent of total retail spending in 2014 to 5 per cent by 2020.2
The key drivers of growth are:
The majority of Malaysia's population is above the

middle-income segment, which mirrors the trend of
mobile penetration rates increasing, presenting ample
opportunities for Australian brands. Australian brands
have room to expand via online retail channels as the
e-commerce segment grows over 2019 to 2023.
An emerging middle class A gradually ageing population will create opportunities
for Australian brands in the health sub-sector over the
medium-to-long term.
Retail investor participation in Malaysia is very strong,

with global retailers attracted by the country’s youthful,
high-spending population and the growing demand for
non-essential products and services. Malaysia is highly
urbanised, making the vast majority of the population
accessible to Australian brands.
Increasing foreign direct investment
Malaysian shoppers are concerned about fraud while

shopping online. Offering a secure online experience
with trusted local payment methods will help convince
local customers. E-payment gateways, e-wallets and
contactless payment are becoming more widespread,
with the Malaysian Government introducing initiatives to
Evolution of payment infrastructure integrate key e-wallets among the Malaysian public.
Stakeholder insight – TIGAS Alliance Group
Simone Lee Excellent e-commerce is driven by great online

Founder & CEO, TIGAS Alliance Group platforms powered by intuitive online shopping, along
with trusted payment gateways and delivery support.
We also think of the ability to deliver responsive as
“Where the healthcare consumer is well as predictive customer service as key in ensuring
increasingly empowered with knowledge a good e-commerce experience. As an example, how
on supplementation and remedies, we see Zappos runs its customer service hotline is a great
our pharmacists operating an omni-channel model to emulate. We also rank the ability to initiate
returns, exchanges and solution-focused operations
model, primarily using e-commerce platforms
very high on our service excellence list.
to generate demand for solutions which
can be fulfilled online, with in-store advisory We have had the opportunity to connect with many
services.” Australians brands in the pharmaceutical, health and
beauty sector, and all of them have the commitment for
According to Consumer Barometer 2017, 80 per cent use of natural, homegrown ingredients, combined with
of Malaysians do some form of research online before superior patented production processes.
making a purchase.
The other heartwarming quality when speaking to
Where the healthcare consumer is increasingly Australian brands owners is that almost always, they
empowered with knowledge on supplementation and are represented by family-run enterprises which have
remedies, we see our pharmacists operating an omni- great pride in their quality ingredients, products and
channel model, primarily using e-commerce platforms processes.
to generate demand for solutions which can be fulfilled
online, with in-store advisory services. The other For starters, enablers connect the dots for brands
important area in e-commerce that we are leveraging wanting to explore the e-commerce channel, and
is facilitating the fulfilment of corporate prescriptions promote a one-stop-shop destination to help
with e-ordering and delivery of long-term medications, businesses trade seamlessly with multiple online
originating from physician platforms. partners.
Health and beauty products reported year-on- I’m not surprised if we see e-commerce as an integral
year growth of 10 per cent in e-commerce sales in strategy for any pharmacy player, particularly from the
Malaysia. We see a lot of traction with regards to standpoint of combining their offline merchandising
online sales of health and beauty products, driven by with online initiatives. We do, however, see limitations
global brands’ focus on making products available on where health-related legislation governs the sale and
various e-commerce marketplaces. The other area purchase of supplements and unregistered health
of evolvement is the choice of shipping and returns products in Malaysia. The laws just have to find some
services offered by logistics and end-to-end delivery way of catching up with the robust trading opportunities
providers. we see online.
MAJOR PLAYERS IN
MALAYSIAN E-COMMERCE
Most e-commerce listings take place on one of three

types of website3:
›› business-to-consumer (B2C) marketplaces

›› consumer-to-consumer (C2C) marketplaces Consumer-to-consumer marketplaces (C2C)
›› brand's own website.
C2C marketplace sites do not hold or purchase
inventory and they usually require the merchant to
distribute the goods when they receive an order from
a customer. The best-known Western example is eBay.
Merchant margins from marketplaces tend to be lower
and aspects such as warehousing and distribution are
Business-to-consumer marketplaces (B2C)
the merchant’s responsibility. Businesses can set up
stores on the site at low cost, with the result that most
Online marketplaces are the online equivalent of
marketplaces host thousands of businesses ranging
a traditional B2C bricks-and-mortar retail store or
from sole traders and SMEs to officially branded stores.
shopping centre. Individual brands or multi-brand
sellers set up stores within the marketplace to sell
direct to consumers. The exact business model for
each marketplace varies; typically, marketplaces require
sellers to arrange their own warehousing and delivery, Brand’s own website
although as competition has increased, some platforms
have introduced warehouse and fulfilment services for Branded e-commerce sites sell the products of a single
high-performing businesses. brand or group of brands. It is the online equivalent
of a standalone bricks-and-mortar retailer. A growing
Online marketplaces usually charge fees for activities number of branded e-commerce sites exist in Malaysia,
such as initial store setup and ongoing product listings, largely because most brands are represented by
as well as commission fees based on sales volumes. distributors that are increasingly willing to invest in
A service provider will often also be required to manage building specialised online sites for their brands and
online product listings and customer service, which have sufficient marketing capability and budgets to
will add monthly fees paid to the platform. With the drive sales. Additionally, most brands are starting to list
increased availability of the internet and affordable on individual or featured stores on online marketplaces.
smartphones, B2C e-commerce has evolved to a great Exporters considering establishing their own branded
extent over the years. Customers have more information store can first test the market via a larger online
about products in the form of informative content and marketplace, then launch their own site.
there is also a chance to compare and buy products at
cheaper rates.
Malaysia’s e-commerce platforms
The top five e-commerce players in Malaysia are all aggregators of various service providers, reflecting the fact that
consumers prefer online stores and platforms that allow them to shop for a range of products. Meanwhile, sites such
as Mudah or Carsome that cater only to specific product categories tend to attract less traffic.
The top e-commerce platforms in Malaysia are B2C sites including Lazada, PrestoMall, Shopee, Lelong, Zalora,
Logon, Carousell, eBay, Qoo10 and Taobao. They offer products across a range of categories including electronics,
fashion, food and grocery, home and living, travel, retail, property and lifestyle. The sites typically offer daily deals and
interactive memberships to increase client engagement and cross-border transactions.
This section provides brief profiles of the e-commerce platforms with the highest traffic. The two main subcategories
are:
›› e-commerce marketplaces
›› specialised e-commerce platforms.
E-commerce marketplaces
Malaysia’s largest e-commerce platforms are either a combination of direct sales and marketplace (Lelong) or pure
marketplace models (PrestoMall, Shopee, Lazada). Heavy investment and increasing competition are quickly changing
the landscape, which will improve access for foreign businesses and may yield new competitors in the coming years.
Lazada As of 2019, the platform recorded 200 million

downloads and gross order increased by 92.7 per
Lazada is a Southeast Asian marketplace started by cent to RM246.3 million in Q2 2019, compared to
Rocket Internet in 2012, and now owned by Alibaba 127.8 million a year ago.11
Group. In 2014, Lazada Group operated sites in multiple
countries including Malaysia, Indonesia, Vietnam, the
PrestoMall
Philippines and Thailand. It had raised approximately
US$647 million over several investment rounds from its
PrestoMall, previously known as 11street Malaysia, is
investors including Tesco, Temasek Holdings, Summit
Malaysia’s largest home-grown online marketplace. It is
Partners, JPMorgan Chase, Investment AB Kinnevik and
now part of Presto, a unique social marketing platform,
Rocket Internet.
which is operated by Presto Mall Sdn Bhd. PrestoMall
forms the e-commerce component within the Presto
Its sites launched in March 2012, with a business
ecosystem – a super app that fulfils users' shopping,
model of selling inventory to customers from its own
entertainment, payment, credit, travel and dining needs.
warehouses. In 2013, it added a marketplace model
that allowed third-party retailers to sell their own
products through Lazada’s site. In April 2016, Alibaba Lelong
Group bought a controlling stake in Lazada to support
Alibaba’s international expansion plans.4 In August 2018, Lelong is a Malaysian online marketplace that launched
Lazada became the largest e-commerce operator in in 1998, offering products and services from more
Southeast Asia based on average monthly website than 10,000 sellers. The site supports C2C and B2C
visits.5 transactions. Shoppers can choose from more than
1.3 million products across various categories including
electronics, fashion, books and more from various
Shopee
online shopping stores and sellers. Lelong can help
Shopee is a Singaporean e-commerce platform sellers personalise their stores and offers a dedicated
established by the Sea Group (previously known as classroom for sellers to learn how to open and operate
Garena), which was founded in 2009. Shopee launched a successful online store.
in Singapore in 2015, and has expanded its reach to
Malaysia, Thailand, Taiwan, Indonesia, Vietnam and
the Philippines. In terms of its business model, Shopee
started as primarily a C2C marketplace but has since
transformed into a C2C and B2C hybrid model.6
To differentiate itself from other e-commerce platforms,

Shopee offers online shopping security through its
own escrow service called 'Shopee Guarantee',
where it withholds payment to sellers until buyers
have received their orders.7 In terms of delivery
efficiency, Shopee partners with over 70 courier service
providers (including Ninja Van8, Pos Malaysia9 and Pos
Indonesia10) across its markets to provide logistical
support for its users.
Specialised e-commerce platforms
Malaysia’s specialised e-commerce platform market is evolving rapidly due to international venture capital and private
equity investment. It includes a mix of B2B and B2C models across product categories that may appeal to Australian
exporters.
Zalora HappyFresh
Zalora is a Southeast Asian e-commerce fashion HappyFresh, founded in 2014, is an e-commerce

retailer founded by Kinnevik AB and Rocket Internet startup that provides a one-hour grocery delivery
in 2012, with operations in multiple countries including service. HappyFresh has concentrated on three markets
Malaysia, Singapore, Indonesia, the Philippines, Hong (Malaysia, Indonesia and Thailand) since 2016. It has
Kong, Taiwan and Brunei. In March 2017, YCH Group also partnered with supermarkets and stores to provide
and Zalora announced the opening of a large regional an effective and efficient online grocery delivery service.
e-fulfilment hub in Kuala Lumpur, Malaysia.12 Zalora is In 2018, HappyFresh collaborated with Grab to launch
part of the Global Fashion Group, which also includes an on-demand delivery service dubbed GrabFresh,
The Iconic. with the goal of expanding customer coverage through
Grab’s extensive network.13
FashionValet
Hermo
FashionValet is a Southeast Asian e-commerce fashion
retailer founded by Vivy Yusof and Fadzarudin Anuar Hermo is a Malaysian e-commerce cosmetic retailer
in 2010, which offers a wide selection of ready-to-wear founded by Ian Chua and PS Chong in 2012, which
garments, specialising in Muslimah attire. FashionValet operates in Malaysia and Singapore. Hermo carries over
not only carries well-known international brands, but 200 brands with a business model that encompasses
also proudly houses local brands from across Southeast flash sales with regular inventory and specialisation in
Asia. premium brands.14
Integrating with Malaysia’s e-commerce platforms
The table below compares Malaysia’s largest e-commerce platforms. (Subject to changes, this table only serves as a
guide. Businesses should plan and implement their own investigations before listing their products or services on any
of these e-commerce platforms.15-18)
Lazada Shopee Lelong

B2C B2C B2C B2C
C2C C2C
Malaysia, Malaysia, Singapore, Malaysia, Malaysia only
Singapore, Thailand, Philippines, Thailand,
Thailand, Vietnam, Indonesia,
Philippines, Indonesia, Turkey,
Vietnam, Taiwan Korea
Indonesia
20.09 22.33 0.89 3.20
Product categories General General General General

New product approval Approval Real-time Approval needed Real-time
needed
Social media followers

(million) in 2019
Shop front deposit (RM) 0 0 0 0
Annual fee (RM) 0 0 0 398 - 498
0
Transaction fee (%) 2 2 2
In-house logistics
No No No No
No
Ownership Alibaba Sea Ltd Presto Mall Sdn Bhd

majority-owned
Payment method to seller
Direct import No No No
1. PrestoMall was previously known as 11street.

2. The commission fee is calculated based on a certain percentage of the product listing price minus any seller-borne vouchers and price
discounts.
3. Cross-border initiatives are limited to certain countries and do not yet apply to Australian companies.
Stakeholder insight – Momentum Commerce
Hans-Peter Ressel According to Lazada Malaysia, more than 20 million

Founder & CEO, Momentum Commerce consumers browsed and shopped on Singles’ Day.
Lazada Malaysia reported that it surpassed its 2017
sales record in just under nine hours. Lazada Malaysia
“… the digital world is an exciting place to be, also said that over 3,000 transactions per minute were
with business owners starting their very own carried out on the website.
digital brands and competing in the digital
marketplace.” Beyond just transacting online (listing and selling,
processing payments and arranging for the necessary
logistics), traditional brick-and-mortar stores are also
Southeast Asia is home to more than 600 million increasingly looking to e-commerce platforms to
people. More than 90 per cent are connected to manage their overall online strategy and offline logistics
the internet via mobile devices. Indonesia, Malaysia, needs. Ten years ago, no one would have expected the
the Philippines and Thailand are among the top 10 traditional brick-and-mortar retail brands to close down
most engaged countries on mobile internet globally. or go bankrupt. One example of a brick-and-mortar
E-commerce in the region has grown with a CAGR retail brand is Toys”R”Us, which has been in business for
of more than 62 per cent over the past three years more than 60 years. Now, Toys”R”Us is liquidating and
according to the Google-Temasek e-Conomy SEA closing its remaining stores in the US.
2018 report. Southeast Asia’s internet economy has
more than tripled in size over the last four years amid On the other hand, the digital world is an exciting place
a fundamental shift in the way people shop, eat and to be, with business owners starting their very own
get around. Consumers want more than just to shop for digital brands and competing in the digital marketplace.
what they need – they want to discover new products, Most brick-and-mortar stores have been forced into
be entertained and even engage with the community creating an online presence. But it is not always easy
and their friends. to hit it big online. There are some trade secrets to be
known if you want to make it to the top.
As a result, online shopping in Southeast Asia is
becoming an increasingly social and immersive This is where we are seeing a shift in the role
experience. Among the main drivers of the rise in e-commerce platforms play, towards becoming trusted
the e-commerce sector is the presence of online e-commerce partners and enablers. Brands coming
shopping portals like Alibaba-owned Lazada, Shopee online and placing their trust in e-commerce platforms
and Tokopedia. In 2009, inspired by the Singles' and enablers could potentially reap the many benefits
Day celebration, Alibaba turned it into an online that the partnership offers, from data utilisation and
shopping festival, which became the world’s largest predictive technology, to effective advertising and
online shopping festival. Singles’ Day on Alibaba is promotion, and fulfilment services. E-commerce in
the equivalent of Black Friday in America and it has Malaysia, Thailand, Singapore and the Philippines is
outperformed traditional American shopping holidays. growing by between 20 per cent and 30 per cent
annually, with no signs of slowing down.
UNDERSTANDING MALAYSIA’S
ONLINE CONSUMERS
In 2019, there were approximately 20 million online consumers in Malaysia, with this number expected to grow to
21.5 million by 2022.19 According to the Malaysian Communications and Multimedia Commission (MCMC), the highest
adoption rate for e-commerce is among the monthly salary group of RM3,000 (A$1,133) to RM5,000 (A$1,889) and
RM5,000 (A$1,889) and above. (Source: MCMC, E-commerce Consumer Survey 2018).
In 2018, people aged 20 to 29 comprised 36.7 per cent of all online shoppers, while people aged 30 to 39 comprised
35.8 per cent of all shoppers. In total, people in their 20s and 30s made up the majority of all e-commerce consumers.
In 2018, the average order volume (AOV) per user was US$115 (~RM470). Based on stats by Euromonitor, 15 per cent
of online retail transactions are made through m-commerce.
What products are people buying?
Malaysia’s online shoppers are motivated by price advantages, product range, availability of reviews, free shipping,
convenience, and exclusive deals offered by online stores. (Source: MCMC, E-commerce Consumer Survey 2018).
According to MCMC, fashion and cosmetics are the most purchased e-commerce product (8.6 million consumers).
The total market transaction is approximately MR1.9 billion.
Electronics & gadgets, sport-related goods and household appliances & furniture are the second most purchased
category (7.1 million consumers). The total market transaction is approximately RM6.2 billion. Groceries, medicine and
online food ordering is the third most purchased category (5.5 million consumers). The total market transaction is
approximately RM979 million.
Number of online consumers Highest e-commerce adoption rate

About 20 million in 2019 Among the monthly salary group of RM3,000 (A$1,133)
to RM5,000 (A$1,889) and RM5,000 (A$1,889) and
above
Age group distribution AOV per user

Almost three-quarters of e-commerce consumers are US$115 (~RM470) in 2018
aged 20–39
15% of online retail done through m-commerce
Most purchased products are:
Stakeholder insight – Growth from Knowledge
Jake Shepherd Across Asia, events such as 11.11 and 12.12 play a
Head of Retail Insights Practice, APAC GFK huge role in driving sales and brand awareness.
Communication ahead of key events is one way of
attracting Malaysian e-commerce shoppers. 68 per
“Malaysian shoppers... 82 per cent of them say cent of Malaysians say that they will wait for the big
they enjoy shopping and are passionate about events to make their purchases. Engaging them on
it. The key to engage them in online shopping social media is the way to get your message across
is good product information and quick and to them. According to our research, 44 per cent of
Asian shoppers will fill in their wish lists ahead of time
easy ordering. Both were ranked ahead of
but this is less prevalent in Malaysia, so making sure
good deals and pricing in importance in our
you communicate right up until the day of the event is
research.” important.
Malaysian shoppers are engaged and passionate about

shopping: 82 per cent of them say they enjoy shopping
and are passionate about it. The key to engage them in
online shopping is good product information and quick
and easy ordering. Both were ranked ahead of good
deals and pricing in importance in our research. Online
shopping has been about speed, convenience and
pricing, but service is also important. After-sales service
and responding quickly to resolve problems both feature
in the top factors for choosing online shopping in our
Malaysian shopper research.
Choosing which products to sell online is also important.

Any shopper journey – the journey from deciding to
buy to comparing products and prices and to eventual
purchase – is increasingly complex and crosses multiple
retail formats. Our research shows that, in general,
Malaysian shoppers will do more of their browsing and
comparing online for lower-value items. The higher
the item's value and the more the shopper invest in
the decision-making process, the more likely they
are to spend time in a physical store. Sometimes this
is because they need the tangibility of the physical
environment, sometimes it is because they need more
explanation or engagement from the product sales
team.
ENTRY POINTS FOR
AUSTRALIAN BUSINESS
It is already possible to take advantage of Malaysia’s e-commerce industry, although access does vary depending on
a company’s size, products and whether it has existing relationships within Malaysia.
Existing relationships Non-existing relationships
Companies with distributors or operations in Malaysia For SMEs with no current relationships or presence in
should already have a Malaysian e-commerce Malaysia, and no supply chains into China, a few access
strategy. Those with existing supply chains into China points exist, but full-scale entry into the market remains
can leverage those relationships to test a Malaysian difficult. Two primary factors complicate entry:
e-commerce strategy – for example, Alibaba-Lazada-
Taobao. Most consumer products (except for fresh ›› Almost all Malaysian e-commerce companies
produce) enjoy a healthy online trade, especially among rely on businesses’ goods to be inside
lower price points, presenting an immediate opportunity Malaysia prior to listing.
for consumer goods companies. ›› E-commerce growth has not eliminated other
hurdles to accessing the Malaysian market,
such as time-consuming and expensive
product registration processes in categories
such as food, health and beauty.
Figure 5 — Fulfilment journey of e-commerce purchase
Purchasing Fulfilment Delivery Customer
Approaches for accessing the market
There are four avenues Australian businesses can follow to access the Malaysian e-commerce market:
›› local distributor
›› establish Malaysian operations
›› international drop-ship
›› work with regional companies.
Local distributor International drop-ship
All but the largest international brands work via International shipments into Malaysia continue as a
distributors into Malaysia’s retail market. Distributors feature of the e-commerce landscape, with major
provide local working knowledge on retail dynamics and international sites such as Amazon shipping into the
they are increasingly attuned to opportunities provided country. Malaysian customers continue to use these
by online sales. sites to gain access to products unavailable in Malaysia
despite the periodic difficulties with customs.
Recently, leading distributors, particularly in fashion
and beauty, and health and grocery, have been seen to As competition from regional sites increases, it is likely
cooperate with e-commerce sites due to the perceived that local sites will invest in enabling international
benefits of online-to-offline (O2O) sales. In fact, almost drop-ship and bonded warehousing options to stay
all major distributors are now listing on local sites. competitive.
Nonetheless, foreign companies seeking access to the Work with regional companies
Malaysian e-commerce market via distributors should
undertake careful due diligence to understand the Malaysia is currently serviced by several companies
distributor’s approach to listing products online. operating e-commerce sites in multiple countries and
this number is likely to grow. The two largest examples
For businesses with existing relationships and/or a local are Lazada and Shopee, both of which have operations
presence, there are local service providers that can in several Southeast Asian countries and have built
support local warehousing and logistics. sophisticated cross-border capabilities, allowing their
foreign businesses to access customers across the
Establish Malaysian operations region. Access to regional markets is provided directly
into Malaysia via the Digital Free Trade Zone (DFTZ),
Creating a local entity in Malaysia and importing which reduces the time and cost of inbound logistics.
products into the market will allow for the greatest
access to e-commerce and wider retail markets. It also
comes with the highest setup costs, complexity and
risks. International brands typically establish their own
operations once they have demonstrated sufficient
product–market fit to warrant deeper investment
into Malaysia, transitioning away from distributor
relationships.
Despite the added complexity of establishing a local

presence, companies seeking to access Malaysia,
especially those with existing supply chains into China
and that enjoy greater access through a free trade
agreement, may consider this option.
Logistics
The supply chain and logistics sector in Malaysia is fragmented, with a large number of entrenched SME players. Large
providers such as NEC, Fujitsu, DHL and Pos Malaysia have a significant presence either through direct investments or
through franchisees and joint ventures with local providers. There are a number of logistics providers in the Malaysian
e-commerce sector:
Third-party logistics (3PL) providers offer logistical and Alternative pickup services are offered by Collectco,
transshipment support to customers and suppliers, with Pgeon and PostCo. Although not in high use, parcel
the platforms acting as principal enablers. Companies locker services are offered by Pos Laju’s EziBox, Roxit
include Aramex, DPEX, GDEX, InPost, Nationwide and PopBox.
Express, Ninja Van, Pos Laju, Pos Malaysia, Skynet,
Sure-Reach and Zepto. International 3PL is carried Fulfilment services, where transshipments are
out by Aramex, DHL, FedEx, LWE and Tigers Global received, stored and categorised, are offered by
Logistics. City-Link Express, DHL, DKSH, Quantium Solutions,
SnT Global and SP eCommerce. These companies also
A range of firms offer on-demand delivery services, liaise with warehouses, shippers and 3PL companies.
where online-to-offline (O2O) aggregation happens.
Companies involved include GoGet, Grab, Zepto and
Zoom.
Digital Free Trade Zone
The Digital Free Trade Zone (DFTZ) was set up by the Malaysian Government in 2017 to facilitate seamless cross-
border trade and enable local SMEs to export their goods using online marketplaces. At the time of writing, the DFTZ
is only open to Malaysian SMEs but may be expanded to international companies in the future.
The DFTZ’s objectives are to: The DFTZ comprises three components:
›› enable global marketplaces to source from The E-fulfilment Hub features best-in-class facilities to
Malaysian manufacturers and sellers support efficient cross-border trade. It includes modular
›› provide SMEs with access to e-commerce warehouses with the latest sorting, shelving and pick-
services such as financing, last-mile fulfilment, and-pack technologies; light industrial units to allow for
insurance and digital marketing minor repair and assembly prior to shipping; a customs
›› provide end-to-end support to businesses inspection and quarantine area; and facilities such as a
for cross-border trade, networking and secure warehouse and temperature-controlled storage.
knowledge sharing to drive innovation within
the internet ecosystem The E-services Platform connects online services
›› make Malaysia the regional fulfilment hub for by global e-commerce companies to the relevant
global brands to reach ASEAN buyers. Malaysian public sector systems to provide a seamless
journey for exporters and importers to conduct
There are currently over 1,900 companies participating their business online. The platform will simplify and
in the zone. Food and beverage, beauty and personal accelerate cargo clearance processes.
care, furniture, and health and medical are among the
top categories. The Satellite Services Hub features co-working
spaces, offline-to-online showrooms and facilities for
meetings, incentives, conventions and exhibitions,
training centres, and large open spaces for community
activities.
Stakeholder insight – JANIO Asia
Syed Faisal Delivering a smooth experience for the end consumer,

General Manager, JANIO Asia especially after the purchase has been made, is
important. The e-commerce experience does not end
at the checkout page. How this post-sale standard
“.. the cost of e-commerce will be reduced of excellence can be met would be through meeting
while e-commerce adoption and transaction delivery turnaround times that were promised and
frequency will grow, especially outside of providing responsive, effective customer service
metropolitan areas.. It will be critical for throughout the post-sale process.
e-commerce sellers to be working with

Malaysian consumers are looking for products that they
logistics partners that have the network
cannot usually find in Malaysia, as well as products that
to truly serve all consumers in their target are higher in quality. Of course, products that are halal
markets.” certified or that cater to the preferences of the local
populace would be better suited to the market as well.
E-commerce in Malaysia is growing rapidly, with
close to half of the population shopping online. This Market knowledge is asymmetric, and merchants who
is expected to increase over the next few years, with are looking to expand to new markets will need help
e-commerce, as a percentage of total retail, growing to navigate the uncertainty of entering a new country.
to 5 per cent in the next five years. What this means is Southeast Asia is a market of many markets, where
that there is a huge opportunity for retailers looking to consumers across countries use digital in different ways,
capture share in this growing market. The platforms on from the channels they use to conduct research before
which e-commerce activity takes place have expanded, the purchase is made, to the channels through which
and the roles of these platforms have evolved as they purchase the products, and to how they pay for
well. Beyond marketplaces, social media and social the products. No one player can do it alone, hence it is
commerce are gaining traction, with more consumers crucial to have an ecosystem where stakeholders and
making direct purchases on Instagram. enablers work together to grow the entire industry.
Cross-border e-commerce is growing as well, as As digital becomes a larger part of everyday life
disposable income in Malaysia increases. The main for Malaysians and the supporting infrastructure
reasons why consumers purchase products from for e-commerce becomes more robust, the cost of
abroad include having greater access to items not e-commerce will be reduced while e-commerce
readily available in Malaysia, as well as to purchase adoption and transaction frequency will grow, especially
items of higher quality. A key enabler behind this is the outside of metropolitan areas. In Malaysia, we can
development and optimisation of cross-border shipping, expect to see growth outside of Klang Valley, even in
which reduces delivery cost and time. states that are further away, such as in Sarawak. It will
be critical for e-commerce sellers to be working with
logistics partners that have the network to truly serve all
consumers in their target markets.
UNDERSTANDING
MALAYSIA’S REGULATIONS
Product registration A registered drug has been evaluated and tested for
its efficacy and safety, and is approved by the DCA for
There are various national laws and guidelines for sale or use in Malaysia. Every registered drug is given a
ensuring product registration in Malaysia. registration number, which must be printed on its label
or package. These numbers start with MAL. Approvals
Food and drinks are required before marketing such products.
Food supplements and drinks are classified as food. Imported products must be registered by a local firm
Food and drink products are controlled by the Food or distributor that has written authorisation to hold the
Safety and Quality Division (FSQ), Ministry of Health. registration certificate and supervise all subsequent
However, depending on the composition and claims, registration issues. For further information about
they can be classified as pharmaceuticals and need qualifiers, inclusions and procedures, please contact
to be registered with the Drug Control Authority (DCA). Austrade.
As per the Food Act 2003, every article manufactured,
sold or represented for use as food or drink for human Cosmetics
consumption, or which enters into or is used in the
composition, preparation or preservation of any food According to the Control of Drugs and Cosmetic
or drink, is covered under the Act. Producers need Regulations 1984, all cosmetic products must be
not seek approvals before marketing their products. registered before they can be imported, distributed,
However, compliance is mandatory. manufactured or used in Malaysia. Cosmetic products
are grouped into two distinct categories: Category I
Imported products must be registered by a local firm includes products that might be absorbed through the
or distributor that has written authorisation to hold the skin or mucous membrane, while Category II includes
registration certificate and supervise all subsequent all other cosmetic products not listed under Category I.
registration issues. For further information about
qualifiers, inclusions and procedures, please contact Imported products must be registered by a local firm
Austrade. or distributor that has written authorisation to hold the
registration certificate and supervise all subsequent
Pharmaceuticals registration issues. For further information about
qualifiers, inclusions and procedures, please contact
The Drug Control Authority (DCA) ensures the safety, Austrade.
effectiveness and quality of pharmaceuticals, health
and personal care products marketed in Malaysia.
It is responsible for registering and licensing all
pharmaceutical and cosmetic products, monitoring the
quality of registered products and overseeing Adverse
Drug Reaction Monitoring.
Product certification
Product certification may be necessary for most products. SIRIM QAS International is a leading certification body in
Malaysia and provides product certification, inspection and testing services. It offers a Product Certification Scheme
for products manufactured to standards including: national standards such as Malaysian Standard (MS) and British
Standard (BS); regional standards such as European Norm (EN) and International Standards (ISO); and well-known
association specifications or standards that are publicly available, such as the JKR specification, AWWA and ASTM.
The Certification Mark granted under this scheme tells potential customers that the product has undergone thorough
assessment and was subjected to a program of supervision and control. For some products that are regulated by
the Malaysian authority, such as electrical appliances, fire-resistant door-sets, motorist safety belts and motorcyclist
helmets, an additional SIRIM Label with a unique serial number is required to be affixed on the finished product.
Malaysia has a comprehensive suite of e-commerce laws, based on a combination of the Electronic Commerce
Act 2006 and the Electronic Government Activities Act 2007. With the introduction of the Personal Data Protection
Act 2010, Malaysia became the first ASEAN member country to pass privacy legislation. The Malaysian Government
considers that some provisions of its e-commerce legislation may need to be updated in view of technological change
and the emergence of social networking and mobile applications.
Government policy and regulation frameworks
The Malaysian Government has committed to developing a digital economy policy to spur digital consumption and
production. The government has a stated objective of converting the nation into a cashless society, embracing digital
payments aggressively and enabling sub-systems to participate. Adoption of a digital economy is dependent on
creating an enabling policy and business environment, to support the uptake of such technologies by business in
Malaysia, particularly SMEs.
Figure 6 — Malaysia's e-commerce roadmap
The Six Thrust Areas of the National eCommerce Strategic Roadmap
Doubling e-commerce growth
Supportive governance framework
Accelerate Increase Lift non-tariff Realign Make strategic Promote national

seller adoption of barriers existing investments in brand to boost
adoption of e-procurement economic select cross-border
e-commerce by businesses • Domestic incentives e-commerce e-commerce
e-fulfilment player(s)
• Cross-border
e-commerce
• e-payment
• Consumer
protection
Good and affordable infrastructure
National eCommerce Strategic
Roadmap
The National eCommerce Council (NeCC), comprising Malaysia Communications and Multimedia
various ministries and agencies, was established to Commission (MCMC) ensures that communication
drive the implementation of the roadmap to double protocols, cybersecurity and other levers are effectively
Malaysia’s e-commerce growth rate and reach a GDP enabled in the e-commerce sector.
contribution of RM211 billion by 2020. Following five
miniLabs, focused interviews and input from over 100
stakeholders across 54 public and private organisations,
Malaysia’s National eCommerce Strategic Roadmap
(NeSR) has been developed. The roadmap outlines
focused government intervention in six key areas, built SME Corp Malaysia (SMECorp) is responsible for
on good and affordable infrastructure and supportive aggregating the needs of SMEs in the nation and
governance framework. (Refer to Figure 6) helping them leverage online models.
Policy implications for Malaysia
Acknowledging the importance of the digital economy,

the government is undertaking concerted efforts to spur Malaysia Digital Economy Corporation (MDEC) is a
digital transformation. The Malaysia Digital Economy government agency under the purview of the Ministry
Corporation (MDEC) is tasked with spearding Malaysia’s of Communications and Multimedia entrusted to lead
Digital Hub and Technopreneurship programs to attract Malaysia’s digital economy forward. Incorporated
global and local tech startups. This resulted in related in 1996 to oversee the development of the MSC
investments of RM16.3 billion in 2016. The Digital Free (Multimedia Super Corridor) Malaysia initiative, MDEC
Trade Zone (DFTZ) initiative launched in 2017 under the has evolved rapidly by prioritising and driving digital
National eCommerce Strategic Roadmap aims to boost and tech innovation. MDEC’s primary mandate is to
SME export contribution to US$38 billion and create accelerate digital skills, digital-powered businesses and
60,000 jobs by 2025. digital investments in Malaysia.
Lessons drawn from the recent experiences of

'frontrunner' economies on digital adoption highlight Other organisations involved in e-commerce are: Bank
some immediate policy priorities for Malaysia. New Negara, Malaysia’s central bank; Securities Commission
policies supporting the digital economy have been Malaysia; Malaysia External Trade Development
launched in Malaysia in the past year. More details on Corporation (a government agency); Malaysia
these policies can be found at https://mdec.my/about- Co-operative Societies Commission; and the Ministry of
malaysia/government-policies/. International Trade and Industry.
A range of private sector organisations are also involved

Relevant organisations in promoting the e-commerce industry. The two
principal organisations are PIKOM (the National Tech
The Malaysian Government develops national strategic Association of Malaysia) and the Malaysia Retailers
roadmaps and guidance documents to support and Association. These entities provide education to SMEs,
grow the e-commerce ecosystem. The following and promote adoption by holding national e-commerce
agencies (reporting to relevant ministries) are involved sales weeks throughout the year.
in ensuring the ecosystem is collaborating to encourage
and enhance e-commerce adoption among businesses.
HOW AUSTRADE
CAN HELP
The Australian Trade and Investment Commission – Austrade – contributes to Australia’s economic prosperity by
helping Australian businesses, education institutions, tourism operators, governments and citizens as they:
›› develop international markets

›› win productive foreign direct investment
›› promote international education
›› strengthen Australia’s tourism industry
›› seek consular and passport services.
Austrade provides information and advice that can help you reduce the time, cost and risk of exporting. We also
administer the Export Market Development Grants scheme and offer a range of services to Australian exporters in
growth and emerging markets.
W austrade.gov.au
E info@austrade.gov.au
T 13 28 78 (within Australia)
Austrade in Malaysia
Seeking the right advice and assistance is critical to the success of doing business in Malaysia. Austrade has an office
in Kuala Lumpur. Austrade’s English, Mandarin and Malay-speaking staff members can provide exporters with market
guidance and access to information, promotions and referrals such as:
›› introductions to appropriate contacts in offline and online channels

›› feedback on the suitability of Australian products and services for the Malaysian market
›› advice on applicable regulations in Malaysia
›› opportunities for participation in online and offline promotions and trade missions.
W austrade.gov.au/Malaysia
E kuala.lumpur@austrade.gov.au
RESOURCES
1. Statistica, E-commerce in Malaysia, June 2018, https://www.statista.com/outlook/243/122/ecommerce/malaysia
2. International Trade Administration, US Department of Commerce, Malaysia – E-commerce,
https://www.export.gov/apex/article2?id=Malaysia-E-Commerce, accessed 28 November 2018
3. Shiprocket 360, ‘Types of eCommerce Business Models, Pros, and Cons’, 2017,
https://360.shiprocket.in/blog/ecommerce-business-models-types-pros-cons/amp/
4. CNBC, ‘Alibaba buys controlling stake in Southeast Asian retailer Lazada’, 12 April 2016,
https://www.cnbc.com/2016/04/12/alibaba-group-invests-1-billion-dollars-in-lazada-group-and-eyes-southeast-asia.html
5. Business Times Singapore, ‘Sea's loss widens on investment in Shopee e-commerce platform’, 23 August 2018,
https://www.businesstimes.com.sg/companies-markets/seas-loss-widens-on-investment-in-shopee-e-commerce-
platform
6. Ecommerce IQ, ‘The Natural Progression of C2C Business Models, Garena Shopee’s Venture into B2C’, 22 May
2017, https://ecommerceiq.asia/garena-business-model-b2c/
7. Tech in Asia, ‘5 disruptive ecommerce startups we saw in 2015’, 11 December 2015,
https://www.techinasia.com/5-disruptive-ecommerce-startups-2015
8. Vulcan Post, ‘CEO Chris Feng On Shopee's Rise In Southeast Asia, & Avoiding Carouhell’, 16 December 2015,
https://vulcanpost.com/486471/shopee-garena-marketplace-asia-carouhell/
9. Marketing Interactive, ‘Shopee partners up with Pos Malaysia’, 6 January 2018,
https://www.marketing-interactive.com/shopee-partners-pos-malaysia
10. Deal Street Asia, ‘Bizzy acquires Alpha; Shopee partners Pos Indonesia’, 10 May 2017,
https://www.dealstreetasia.com/stories/indonesia-db-b2b-e-commerce-bizzy-acquires-alpha-shopee-partners-pos-
indonesia-for-delivery-72245/
11. The Star Online, ‘e-commerce platform Shopee confident of sustaining strong growth’, 18 October 2019,
https://www.thestar.com.my/business/business-news/2019/10/18/e-commerce-platform-shopee-confident-of-sustaining-
strong-growth
12. Digital News Asia, ‘Zalora invests US$4.2mil on regional e-fulfilment hub in Malaysia’, 10 March 2017,
https://www.digitalnewsasia.com/business/zalora-invests-US4.2mil-on-regional-e-fulfilment-hub-malaysia
13. Business Insider, ‘Grab launches grocery delivery service GrabFresh in Indonesia – Malaysia and Thailand to follow
by end 2018’, 10 July 2018, https://www.businessinsider.my/grab-grabfresh-indonesia-thailand-malaysia-growth/
14. TechCrunch, ‘Hermo, One Of Southeast Asia’s Top Beauty Sites, Lands $2M Series A’, 15 October 2015,
https://techcrunch.com/2015/10/14/hermo/
15. AseanUp, ‘Top 10 e-commerce sites in Malaysia 2019’, 25 October 2019,
https://aseanup.com/top-e-commerce-sites-malaysia/
16. Iprice, ‘The Map of E-commerce in Malaysia’, September 2019, https://iprice.my/insights/mapofecommerce/en/
17. Marketing-Interactive, ‘Lazada looks to boost cross-border operations for international brands’, 8 March 2019,
https://www.marketing-interactive.com/lazada-looks-to-boost-cross-border-operations-for-international-brands/
18. KrAsia, ‘Cross-border opportunities and pitfalls in Southeast Asia with Shopee’, 4 June 2019,
https://kr-asia.com/cross-border-opportunities-and-pitfalls-in-southeast-asia-with-shopeee
19. Malaysia Digital Economy Corporation, National eCommerce Strategic Roadmap,
https://mdec.my/about-malaysia/government-policies/national-ecommerce-roadmap/
GLOSSARY
1. Online Retail: Sales of consumer goods to the general public via the internet. This includes sales through mobile
devices. Online Retail includes sales generated through pure e-commerce websites and through sites operated
by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where
the retailer is based. It includes orders for which payment is made through online bank transfer and orders paid by
cash on delivery. Online Retails includes m-commerce, where consumers use mobile devices to purchase goods
online.
2. Foreign Online Retail: E-commerce purchases made on foreign websites or websites created specifically for
cross-border transactions. The sum of Foreign Online Retail and Domestic Online Retail is Total Online Retail.
3. Domestic Online Retail: E-commerce purchases made on domestic retail websites. The sum of Foreign Online
Retail and Domestic Online Retail is Total Online Retail.
4. Mobile Online Retail: Includes sales through mobile devices such as smartphones and tablets. These sales are
also included in the Online Retail channel. Mobile Online Retail is also known as m-commerce.
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E-COMMERCE

This report has been prepared by the Commonwealth of Australia

Publication date: May 2020

About this report

Size and growth of the market

Figure 1 — Online retail value across ASEAN

2018 actual 2019 forecast 2013-2018 CAGR 2018-2023 CAGR

Figure 2 — Foreign online retail value across ASEAN

2018 actual 2019 forecast 2013-2018 CAGR 2018-2023 CAGR

Figure 3 — Mobile online retail value across ASEAN

2018 actual 2019 forecast 2013-2018 CAGR 2018-2023 CAGR

Figure 4 — Smartphone possession across ASEAN

2018 actual 2019 forecast 2013-2018 CAGR 2018-2023 CAGR

The key drivers of growth are:

The majority of Malaysia's population is above the

Retail investor participation in Malaysia is very strong,

Malaysian shoppers are concerned about fraud while

Simone Lee Excellent e-commerce is driven by great online

Most e-commerce listings take place on one of three

›› business-to-consumer (B2C) marketplaces

Lazada As of 2019, the platform recorded 200 million

To differentiate itself from other e-commerce platforms,

Zalora is a Southeast Asian e-commerce fashion HappyFresh, founded in 2014, is an e-commerce

Lazada Shopee Lelong

Product categories General General General General

Social media followers

Ownership Alibaba Sea Ltd Presto Mall Sdn Bhd

1. PrestoMall was previously known as 11street.

Hans-Peter Ressel According to Lazada Malaysia, more than 20 million

What products are people buying?

Number of online consumers Highest e-commerce adoption rate

Age group distribution AOV per user

Most purchased products are:

Malaysian shoppers are engaged and passionate about

Choosing which products to sell online is also important.

Existing relationships Non-existing relationships

Figure 5 — Fulfilment journey of e-commerce purchase

Purchasing Fulfilment Delivery Customer

Local distributor International drop-ship

Despite the added complexity of establishing a local

Digital Free Trade Zone

Syed Faisal Delivering a smooth experience for the end consumer,

e-commerce sellers to be working with

Government policy and regulation frameworks

Figure 6 — Malaysia's e-commerce roadmap

The Six Thrust Areas of the National eCommerce Strategic Roadmap

Doubling e-commerce growth

Supportive governance framework

Accelerate Increase Lift non-tariff Realign Make strategic Promote national

Good and affordable infrastructure

Policy implications for Malaysia

Acknowledging the importance of the digital economy,

Lessons drawn from the recent experiences of

A range of private sector organisations are also involved

›› develop international markets

›› introductions to appropriate contacts in offline and online channels

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