Malaysia e-commerce sales are set to surge 12.8 percent to MYR 50.3 billion (USD 11 billion) in 2024, driven by the continued shift in consumer preferences from offline to online shopping, according to a report.
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According to a report released by GlobalData, the Malaysia e-commerce market registered 15 percent growth in 2023 to reach MYR 44.6 billion, as consumers increasingly look to online shopping.
Alternative payment methods are the most preferred for e-commerce payments, according to GlobalData’s 2023 Financial Services Consumer Survey, accounting for a combined market share of 35.7 percent in 2023.
Grab Pay and ShopeePay are the most popular alternative payment methods, which have gained prominence due to their simplicity, speed, and convenience.
Alternative payment growth has also been driven by the rising popularity of buy now, pay later (BNPL) solutions, namely SPayLater, PayLater, and Atome. Meanwhile, social commerce platform TikTok Shop partnered with Atome in July to enable customers pay in instalments by selecting Atome at the payment checkout.
Alternative payments are followed by payment cards and bank transfers, with cards accounting for a 24.9 percent share of e-commerce transaction value in 2023.
However, over 14 percent of e-commerce purchases in the Southeast Asia nation are still made using cash.
“Malaysia is among the fastest-growing e-commerce markets in Southeast Asia supported by the rising internet and smartphone penetration, availability of secure online payment systems, and increasing number of online shoppers,” said Poornima Chinta, senior banking and payments analyst at GlobalData.
“Furthermore, online shopping festivals such as Black Friday, Cyber Monday, and Single’s Day have also contributed to the overall growth of e-commerce in Malaysia.”
Beyond 2024, GlobalData predicts the Malaysian e-commerce market will increase at a compound annual growth rate of 11.7 percent between 2024 and 2028 to reach MYR 78.4 billion in 2028.