Government Investments, Core AI Technology and Faster Deliveries are the 3 Major Trends driving the E-Commerce Shipments Market in Malaysia, says a report by Ken Research
Industry is expected to reach maturity phase with stable e-commerce growth and increasing price wars among major players. Technological development such as drone deliveries expected to enable quicker deliveries and Robots to ensure smooth fulfillment of orders. E-Com Orders delivered growing at a CAGR of ~40% (2016-2021) with increasing number of online shoppers & entrance of major retailers in Malaysia.
1. Malaysia E-commerce Shipments Market has Witnessed a Strong Growth Trajectory Backed by Competitive Technological Advancements
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Malaysia E-commerce shipments market has been observed in its early growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with increase in the number of online orders. Expansion in internet services (~80% internet penetration in 2021) coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce shipments industry in Malaysia. Updated Technology such as Live Tracking, Automation, WhatsApp Bots, AI Systems, IoT, Telematics are used by e-com logistics players.
2. Ecommerce growth in Malaysia is primarily driven by a growing number of digitally-savvy, middle-class people who are looking for great deals and access to international brands.
Businesses in Malaysia are supported by a host of efficient and modern infrastructural and technical implementations that facilitate trade, transactions and deliveries. The advanced logistics, connectivity and trading establishments are the foundations upon which the modern technology driven enterprises have found their incredible growth.
Malaysia boasts of an incredible 140% mobile penetration and 85% internet penetration. More than 26 Mn Malaysians access the internet and about 80% of users between the ages of 16 and 64 are already shopping online. Malaysia’s mobile commerce growth is outpacing overall e-commerce, projected to rise at a compound annual growth rate.
Similar to other countries in Southeast Asia, Grocery and FMCG ecommerce is rapidly growing in Malaysia. Malaysia was ranked 2nd in Statista’s world’s fastest growing grocery market list in 2018, with only Singapore registering a higher YoY increase.
Traditionally ecommerce players in Southeast Asia faced logistical challenges due to the fragmented topology of the region dominated by multiple islands and dense jungles. However, Malaysia is segregated into only two major parts – Peninsular Malaysia and East Malaysia; which makes ecommerce logistics a whole lot more straightforward and cost-effective.
3. More than 2 Days delivery will still dominate the Malaysian E-commerce shipments market
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Many E-com companies are increasingly offering 24-hour delivery promise to its customers to encourage speedy deliveries in and around Kalang Valley, Selangor and Kuala Lumpur, giving a boost to the same day deliveries in Malaysia. Post Pandemic, groceries and essential items are being processed at a faster rate to ensure same day/next delivery of these products to the customers across the country.
4. Digital Free Trade Zone along with other initiatives launched by Malaysian Government to support Efficient Cross Border Trade with E-Commerce as the priority sector
Digital Free Trade Zone (DFTZ) was launched under MITI in 2017 to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for e-commerce. The e-Fulfilment Hub under DFTZ will be developed over two phases where the first phase will be at the Kuala Lumpur Airport Cargo Terminal operated by POS Malaysia to serve e-commerce players.
Based on Section 14 of the Commercial Vehicles Licensing Board Act 1987 (“CVLBA 1987”), to provide transportation services, two types of licenses are available. Carrier License A – to provide transportation services to third parties using commercial vehicles; Carrier License C – to provide services for their own use.
For more insights on the market intelligence, refer to the link below:-
Malaysia E-commerce Shipments Market
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