Malaysia is one of the five fastest-growing and developing e-commerce markets in Southeast Asia. Along with Indonesia, the Philippines, Thailand, and Vietnam, Malaysia is cited as one of the most promising markets to watch. 

With a steadily growing penetration rate and the Malaysian government’s commitment to developing infrastructure that benefits e-commerce, Malaysia is, and will continue to be, a major contributor to e-commerce business in Southeast Asia. Read on for more statistics, data, and facts about the Malaysian e-commerce market. 

Malaysian eCommerce Market Data

A report published in Q1 2024 predicted that e-commerce in Malaysia will grow by 11.18% by the end of this year to reach a value of $14.8 billion. The country’s future is forecasted to growth more between 2024 and 2028 with compound annual growth rate (CAGR) of 9.63%. By 2028, the Malaysian e-commerce market could record a $21.42 billion gross merchandise value (GMV). 

Malaysian consumers are also leaning towards shopping online rather than in-store; a preference held over from the pandemic that will benefit the country’s e-commerce market. The number of e-commerce users is expected to grow by 75.91%, adding another 8.1 million users between 2024 and 2029. About 80% of Malaysia’s population are active internet users and 50% of the population identified as online shoppers.

What Are the Most Popular eCommerce Apps in Malaysia?

 Consumers in Malaysia have many choices when it comes to what apps they use to shop online. The top five e-commerce platforms in Malaysia, according to the TMO Group, are: 

• Shopee: Shopee is one of the most-used platforms in Southeast Asia and recorded the highest traffic in Southeast Asia in 2023. It is the number one platform in Malaysia with 37 million web monthly visits and 629.9 thousand monthly app downloads on Android phones. Shopee holds 43% of the traffic share in Malaysia. 
• Lazada: Lazada is another company popular in Southeast Asia. In Malaysia, it boasts 10.40 million monthly visits and 9% of traffic share. 
• Mudah: Mudah is an e-commerce platform unique to Malaysia. It has 6.66 million monthly visitors and 6% of traffic share. Mudah has a wide variety of products and services sold on the app, including cars, properties for sale or rent, services that range from cleaning to accounting, and pre-owned items. 
• Amazon: While Amazon dominates the e-commerce market in the United States and Europe, this retailer holds just 3% of traffic share in Malaysia. 
• Taobao.com: Taobao is a Chinese app that has recently made its way to Malaysia.The app was only available in Mandarin, meaning that there was a language barrier for many Malaysians. However, with the launch of an English interface, the app is able to reach a wider audience within the country.

Some other notable platforms in Malaysia include PG Mall, Carousell, Zalora, Lelong, GoShop, and eBay Malaysia.

The most purchased items in Malaysia were electronics, fashion, and furniture. In 2023, Malaysian consumers spent roughly $2.32 billion on electronics through e-commerce marketplaces. Fashion, the second most purchased item, recorded $2.01 in sales. 

What Are the Challenges of eCommerce Sellers in Malaysia?

It can be hard to imagine an e-commerce economy with such a positive trajectory to have any challenges. But like any market, there will be some headwinds Malaysian e-commerce will have to address. 

One of the perennial challenges that e-commerce retailers face is motivating their shoppers to commit to the purchase. Malaysian consumers are especially looking for free shipping, convenience, and deals or promotions offered by retailers. These costs are often placed back on the retailers, who must shoulder the burden of potentially high fulfillment and logistics costs. 

Malaysian consumers have high expectations from their e-commerce platforms: 90% of Malaysians expect their purchase to be delivered within a week. While Malaysia and Thailand have some of the lowest logistics costs, retailers must balance low costs with maintaining consumer satisfaction.

E-commerce retailers in Malaysia may also face some strong competition from TEMU and TikTok Shop. This will likely change the landscape of e-commerce in the country. The infiltration of the space from more retailers means that retailers need to differentiate their products through marketing that targets their audience. 

What is the Future of Malaysian eCommerce?

Here are some trends to watch in the Malaysian e-commerce space: 

• Malaysia has an incredibly high internet penetration rate of almost 98% and a social media penetration rate of 83.1%–the highest in the region. This puts Malaysia in an excellent position in terms of taking advantage of the social selling trend sweeping Southeast Asia. 
• Malaysian e-commerce companies are increasingly focusing on developing their social media presence through investing in their digital marketing budget. In 2023, Malaysian companies allocated 32.0% of their total digital marketing spending towards social media. Social selling will likely play a huge role in capturing customers from popular social media platforms like Facebook, Instagram, and TikTok. Social selling and influencers will be critical for Malaysian e-commerce businesses looking to expand their consumer base.
• E-commerce consumers are increasingly relying on a variety of payment methods in Malaysia.  In 2023, the most common payment form was account-to-account (direct transfer from one bank to another), but digital wallets captured the second-highest share of e-commerce payments. Platforms like Shopee have begun to incorporate their own digital wallets into their apps–a way to ensure a hassle-free payment experience. 
• Those watching the Malaysian e-commerce market also need to be aware of the country’s National e-Commerce Strategic Roadmap (NESR). The NESR is currently in its second phase and will continue to develop the e-commerce space. At the end of 2023, the NESR reported over 1.5 million cumulative number of MSMEs adopting e-commerce between 2016 and 2023 and exactly 215,733 e-commerce retailers able to export their business between 2017 and 2023. 

The data shows that Malaysian e-commerce businesses are poised for success. It will likely soon become an even bigger player in the Southeast Asian e-commerce space.