Malaysia’s e-commerce landscape expected to grow
According to a recent report, Malaysia’s e-commerce is on a growth trajectory and has already started benefiting the country following the full implementation of 13 key programmes under the National eCommerce Strategic Roadmap’s (NeSR) six thrust areas.
According to a release on the MDEC website, The National eCommerce Council (NeCC), comprised of various Ministries and Agencies and was established to drive the implementation of the roadmap towards doubling Malaysia’s eCommerce growth rate and reach a GDP contribution of RM 211 billion by 2020.
Following 5 miniLabs, focused interviews and inputs from over 100 stakeholders across 54 public and private organizations, Malaysia’s National eCommerce Strategic Roadmap (NeSR) has been developed.
The roadmap outlines focused Government intervention in six thrust areas, built on good and affordable infrastructure and supportive governance framework:
- Accelerate seller adoption of eCommerce
- Increase adoption of eProcurement by businesses
- Lift non-tariff barriers (e-Fulfillment, cross-border, e-Payment, consumer protection)
- Realign existing economic incentives
- Make strategic investments in select eCommerce player(s)
- Promote national brand to boost cross-border eCommerce
Across these six thrust areas, 11 programs have been prioritized for the near term, to deliver significant impact.
The International Trade and Industry Minister stated that e-commerce has added value and has contributed to the gross domestic product in Malaysia continuously improved over a period of seven years to RM85.8 billion in 2017 from RM37.7 billion in 2010, with an average annual growth rate of 12.5 per cent.
He noted that while the annual percentage change for the period 2015 to 2016 was just 9.9 per cent, 2017 saw a remarkable jump to 14.3 per cent as a result of the nation’s efforts in strengthening the e-commerce industry.
It was also noted that the National eCommerce Council (NeCC) headed by both MITI and MDEC is committed to taking the (e-commerce) industry a level higher.
The minister pledged that the concerned committees will continue to chart the growth and development of e-commerce in the country, according to a joint statement from the Ministry of International Trade and Industry (MITI) and Malaysia Digital Economy Corporation (MDEC) after chairing the NECC meeting held recently.
The meeting discussed the NeSR’s progress on the implementation of the National eCommerce Strategic Roadmap (NeSR) and matters pertaining to enhancement of the competitiveness of the e-commerce ecosystem.
It was attended by officials from 28 ministries and agencies, including the NECC, the Entrepreneur Development Ministry and the National Cyber Security Agency.
Since its establishment in 2016, the NECC’s achievements in developing and enhancing the e-commerce ecosystem’s competitiveness included registering over 120,000 online businesses the Companies Commission of Malaysia.
Small and medium enterprises (SMEs) registered with the ‘Go eCommerce’ platform aimed at guiding companies in e-commerce adoption exceeded 20,000.
The implementation of the Digital Free Trade Zone (DFTZ) pilot project has accelerated the growth of e-commerce activities by providing a platform for local SMEs and enterprises to conduct their business and services, the statement said.
The MDEC Director of eCommerce said the DFTZ has shown a positive impact in realising the national objective of increasing SMEs participation in cross-border e-commerce transactions.
He stated that since the implementation of the (DFTZ) pilot project, more than 5,000 Malaysian SMEs have registered with and started exporting through the platform of a Chinese tech giant.
The MDEC director also noted that the government remains steadfast in encouraging other industry players such as e-marketplaces, and local and international logistics players to participate in the DFTZ.