The country’s e-commerce income by establishment experienced notable growth of 10.4% year-on-year, driven by the manufacturing and services sectors to reach RM291.7 billion in the first quarter of 2023.
Growth has been constant for 2022 as the first quarter recorded RM264.3 billion in earnings, which continued into the second quarter with RM273.8 billion.
It’s the same for the third and fourth quarters of 2022, as earnings from e-commerce rose to RM274.6 billion in Q3 and RM287.1 billion in Q4.
Overall e-commerce income for 2022 amounted to RM1,099.7 billion, a 6.0% growth compared to the previous year.
The Department of Statistics Malaysia (DOSM) attributed the positive growth to the government’s initiatives aimed at:
- establishing a regional e-commerce gateway
- investing in e-commerce startups
- promoting innovation through a regulatory sandbox
- enhancing communication and broadband facilities
These efforts, according to DOSM, have yielded substantial economic benefits, including increased adoption of digital technology and overall improved performance.
The agency added that the income generated from e-commerce experienced a remarkable 23.9% surge in 2021 compared to 2019, reaching RM1,037.2 billion.
Examining the e-commerce income by market segment, the local market segment, which includes sales conducted within Malaysia, recorded a substantial increase of 25.5%, amounting to RM932.7 billion in 2021.
The Department of Statistics Malaysia
In contrast, the international market segment increased by 11.9%, reaching RM104.5 billion.
Analysing the e-commerce income based on the type of customer, DOSM revealed that Business to Consumer (B2C) transactions experienced a 26.2% growth to RM308.9 billion. Business to Business (B2B) transactions increased 25.9% to RM713.1 billion but Business to Government (B2G) declined by -31.0%, amounting to RM15.2 billion.
These statistics highlight the substantial growth and economic impact of e-commerce in Malaysia, with strong performances in the local market segment, B2B transactions, and B2C transactions. However, the B2G sector declined during the same period. E-Commerce expenditure recorded an increase of 23.6% to RM460.8 billion.
The Department of Statistics Malaysia (DOSM) today released the stats on e-commerce in their Usage of ICT and E-Commerce by Establishment 2022 report.
Pandemic A hidden Silver Lining For e-Commerce
DOSM noted that the local market segment surged 25.8% to RM426.8 billion, while the international market grew 3.2% to RM34.0 billion.
As for E-Commerce expenditure by type of market, Business to Business (B2B) rose 20.5% to RM403.1 billion, followed by Business to Consumer (B2C) with 85.0% to RM50.8 billion. Meanwhile, Business to Government (B2G) declined -12.6% to RM7.0 billion.
Subsequently, computer usage recorded an increase of 7.6 percentage points to 93.8%, followed by internet (increase 5.4 percentage points to 90.6%), and web presence (increase 9.4 percentage points to 63.3%).
Information & Communication, Financial & Takaful/Insurance, and Real Estate sectors fully utilised the use of the internet and computers in their businesses. Even though the COVID-19 pandemic had a negative impact on the overall health and economy, on the other hand, it also had a significant positive effect on boosting e-commerce activity.
The Department of Statistics Malaysia
Lifestyle changes due to the restrictions and safety measures were imposed to control the spread of the virus, such as lockdowns, social distancing, and limited physical store operations, but it has led to a surge in online shopping and digital transactions. Overall, DOSM sees that the pandemic has acted as a catalyst for the growth of e-commerce in Malaysia.
