Insights into the growth of Malaysia ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
Malaysia is home to almost 32 million people with a total GDP of US$364.7 billion. GDP per capita is currently US$11,378 and expected to reach US$14,765 by 2025. Malaysia is expected to show a high CAGR of over 14.97% between 2021 and 2025.
Digital User Insights
There are currently 14.4 million ecommerce users in Malaysia, with almost 4 million more users to be shopping online by 2025. These 18.3 million ecommerce users will represent 77% of the total population. The average user spends US$383 online, which will grow to US$530 by 2025.
In Malaysia, the average time spent online is approximately 7.5 hours on the internet, almost 2.5 hours on social media, and over 2.5 hours on TV viewing including broadcast, streaming and video on demand.
Total ecommerce revenue across all product categories is US$5 billion, expected to reach US$9.6 billion by 2025. Fashion is currently the leading product category, accounting for US$1.8 billion market share. Electronics & Media is second, accounting for US$1.4 billion.
By 2025, Fashion will remain in the lead, valued at US$3.5 billion. Electronics & Media will also grow, reaching US$2.4 billion.
Preferred Online Payments
Only 32% of Malaysian online shoppers paid by card, with customers preferring to pay by bank transfer (46%), cash (11%) and eWallets (6%).
Where does Malaysia buy from?
Internet and Device Usage
Internet penetration in Malaysia is currently at 96%, and should reach 97.5% by 2025. Smartphone penetration is 96% and is projected to grow to 97.4% by 2025. Social Network Penetration was 81% as of 2020.
82% of online shoppers in Malaysia have shopped online via smartphone in 2020. 27% of shoppers made purchases via desktops, 26% by laptops/notebooks, and 11% used a tablet to make their most recent online purchase.
Year on year marketing spend has increased across cinema (28%), digital (11%), in-store (11%) and outdoor (5%), with spend on radio (-5%), television (-8%), newspaper (-20%) and magazines (-35%) all falling from 2018 to 2019.
For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.
*Insights derived from eShopWorld data, Statista, WorldBank, OECD and other industry sources.