E-commerce is gaining momentum, and Malaysia has become a destination for Indonesian e-commerce expansion

According to foreign media reports, the Malaysian government will prioritize the development of the e-commerce industry as part of the national economic recovery plan. With the current status and prospects of e-commerce development being good, Malaysia has also become a destination for Indonesia to expand e-commerce.

Although the COVID-19 situation in Southeast Asian countries has not improved significantly by the beginning of 2021, this situation has greatly increased the popularity of e-commerce.

Reports indicate that in 2020, the total number of e-commerce users in Indonesia reached 130.8 million, an increase of 15%. This means that by 2021, the number of users will reach 159 million.

Meanwhile, revenue for the industry is expected to grow 26% to $38 million from $30 million in 2020.

The case of Jet Commerce provides a concrete example of the expansion of Indonesian e-commerce platforms in Malaysia and the increasing use of e-commerce in the country .

In the fourth quarter of 2020, Jet Commerce recorded a 36% increase in its overall sales value from the previous quarter, which was proportional to the number of transactions that increased by 53% in the third quarter.

Jet Commerce Indonesia CEO Webber Chen said the increase in the number of transactions that took place in 2020 proves that e-commerce is now becoming more popular with the public.

Experts say that as Indonesian e-commerce platforms enter Malaysia, local Malaysian talent also needs to participate in the expansion. In addition to promoting communication with partners, it is also necessary to evaluate whether local talent can better understand local market needs , including mastering local culture and understanding consumers' online shopping patterns.

According to the same JPMorgan report, Malaysia’s e-commerce market is considered to be growing rapidly in terms of the industry’s value.

In 2017, the Malaysian e-commerce industry was valued at US$3.9 billion, and by 2019 its value had increased by 39% from US$3.9 billion the previous year to US$5.8 billion to US$8 billion.

Although Malaysia has a relatively small population and its express delivery services and electronic payments are still under development, the country ’s communications infrastructure is already complete, which are important factors for Indonesian e-commerce companies to choose Malaysia as an expansion destination.

Cross-border e-commerce market

Southeast Asia