Malaysia E-commerce Market Size (2024 - 2029)

Malaysia E-commerce Market Analysis

The Malaysia E-commerce Market size is estimated at USD 10.72 billion in 2024, and is expected to reach USD 20.93 billion by 2029, growing at a CAGR of 14.32% during the forecast period (2024-2029).

• The e-commerce market is experiencing growth due to increasing internet penetration, access in developing economies, smartphone usage, technological advancements, and rapid urbanization.
• The primary factors fueling the market's expansion are consumer electronics, fashion and apparel, and personal care industries. Significant investments in consumer electronics, personal care, and fashion and clothing sectors are opening up possibilities for growth.
• According to Statistics Malaysia, in 2023, almost all individuals in the country accessed the internet through their mobile phones. Additionally, about 38% of users reported using the internet from their laptops, while 13% reported utilizing alternative mobile gadgets.
• The Malaysian government’s proactive stance in fostering a digital economy has played a crucial role. Initiatives like the Digital Free Trade Zone (DFTZ) and the National E-commerce Strategic Roadmap have been instrumental in encouraging both local and international players to participate in the Malaysian e-commerce market. These policies not only streamlined regulatory processes but also provided incentives for e-commerce businesses, thereby catalyzing growth and innovation in the market.
• The government is implementing supportive measures for e-commerce. For example, in October 2023, PIKOM and e-Commerce Malaysia endorsed a careful and positive strategy for TikTok Shop, emphasizing the importance of proactive discussions with industry associations and e-commerce enablers. The focus was on local policies and developing the skills of local creators and e-commerce facilitators rather than foreign ones by providing workshops, training, and platform tools that help local players succeed in the digital market ethically.
• E-commerce companies recognize the importance and requirement of mobile commerce (m-commerce) in developing their existing and upcoming omnichannel strategies through effective, easy-to-use applications. During the forecast period, the rollout of 5G is expected to be a key driver of increased mobile traffic from consumer-facing websites across the country.
• According to Malaysia's Commercial Crime Investigation Department (CCID), by September 2023, Malaysia had recorded over 8,800 e-commerce scams. The tenacity of fraud hindered the market's expansion, which eroded purchasers' faith.

Malaysia E-commerce Industry Segmentation

E-commerce includes business-to-business (B2B) and business-to-consumer (B2C) transactions and internal organizational transactions that support these activities. The study tracks essential market factors, underlying growth influencers, and significant market vendors to provide estimations and growth rates for the forecast period. The study also examines the overall impact of COVID-19 on the market. 

The Malaysian e-commerce market is segmented by B2C e-commerce (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture and home, and others (toys, DIY, media, etc.)) and B2B e-commerce. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.