With high numbers of Internet users and smart phone owners Malaysia is set for a growing e-commerce. According to the CEO of online marketplace 11street, Hoseok Kim, Malaysian e-commerce has grown by 31 percent between 2010 and 2014, and a similar growth is expected from now until 2018.
- There are a total of 252.4 million Internet users around South-East Asia, with Malaysia emerging as the third country that recorded the highest percentage of Internet users at 67 percent after Singapore and Brunei. The promising Internet penetration indicates Malaysia’s enormous potential for e-commerce market growth, he said in an interview with newspaper The Star Online.
Security Issues Discourages
During the last few years, the Malaysian government has made several efforts to provide the population with the logistics needed for a growing e-commerce. Today, Malaysians are among the most frequent users of the Internet on the Asian continent, and an estimated 47 percent of Malaysians regularly using mobile phones to make online purchases, according to The Star Online.
Still, Malaysia’s share of global e-commerce is as low as 2 percent, leaving the country far behind for example Korea, which is said to have a share of 15 percent. A reason for Malaysia’s small number in comparison to its large population and many Internet shoppers could be that consumers feel unsecure about making payments online.
- Shoppers are always urged to make transactions with only trusted platform that offers product return policies, customer reviews on products, seller’s rate or scoreboard, as well as a trustworthy payment system. Online sellers and marketplaces have to bear this in mind and update their security measures from time to time in order to establish shoppers’ confidence, said Hoseok Kim.