The e-commerce market has huge potential! Malaysian SMEs are accelerating their digital transformation

Especially since Malaysia announced its travel ban, 22,000 deals offered by Tourism Malaysia and the Ministry of Tourism , Arts and Culture on e-commerce platform Shopee were sold out.

Ian Ho, managing director of Shopee Malaysia , said the strong demand indicated Malaysians’ appetite for online shopping while they relax at home.

E-commerce isn’t the only digital technology used by small businesses during the COVID-19 pandemic. Social media is also an important tool for the industry, with more than 60% using it to promote their business and 55% using it to communicate with customers.

The strong correlation between technology usage and business growth, and the rapid returns many Malaysian businesses have experienced on investing in technology, has undoubtedly helped drive this growth.

Data also showed that while most Malaysian small businesses have offered new digital and mobile payment methods to customers, 61.5% still receive 50% or more of their sales in cash, higher than the regional average of 46.4%.

However, due to a lack of awareness of available solutions or skepticism about these solutions, small businesses may only offer limited digital and mobile payment options . And this year, many Malaysian small businesses are worried about financing conditions, with nearly 50% of businesses expecting they will have difficulty obtaining financing.

The vaccine rollout and easing of restrictions have limited developments such as a surge in infections at the start of the year. This suggests a more optimistic outlook for 2021, which the survey results support.

About 70% of respondents expect their income to grow this year, up from 56% last year. Meanwhile, exports will make an important contribution to economic growth, with 45% expecting revenue from overseas to grow this year.

Despite the uncertainty facing many businesses, more than a quarter of Malaysian small businesses expect to undergo digital transformation this year, a higher proportion than small businesses in Australia , Hong Kong , New Zealand , Singapore and Taiwan.

However, the uncertainty in the economic outlook will still hinder the recovery of small businesses. Therefore, the government should continue to play a greater role in supporting Malaysia's e-commerce sector in the near term .

Cross-border e-commerce market

Southeast Asia