Shot in arm for e-Commerce with lower broadband charges

PETALING JAYA: E-commerce will get a shot in the arm with the planned reduction of broadband charges by about 25% by the year-end.
ShopBack Malaysia's Co-founder Sharmeen Looi said the e-commerce sector will grow substantially with wider reach of broadband penetration.
ShopBack is an e-commerce startup that utilises the cashback reward programme. It allows online shoppers to take a portion of their cash back when they buy products through the service.
"This could help the e-commerce ecosystem as more people will be able to enjoy Internet connection with an affordable price, whereas more business owners such as cafes and accommodation providers could consider subscribing to broadband services as a value-added service for their customers," she said.
Looi predicted an uptick in businesses that rely on the Internet.
"On the business side, we have witnessed an increase in sales the day after the implementation of 0% GST and are confident that the subscriptions for broadband services will rise further should the price fall and it will increase our business," she said.
Meanwhile, Telekom Malaysia's (TM) has said it will work to provide affordable broadband to all.
In a statement to theSun, TM said that it will support the government's initiative.
"Telekom Malaysia Berhad (TM) is always supportive of the Government's aspirations of improving the affordability, reach and quality of broadband services in Malaysia," read the statement.
"TM is in ongoing dialogue with the Ministry and the regulators as to how best to implement these initiatives for the betterment of the nation."
Communications and Multimedia Minister Gobind Singh Deo announced the planned reduction in broadband fees following the implementation of the Mandatory Standard on Access Pricing (MSAP) since June 8 this year.
"The relevant parties are now in discussion on setting the wholesale price and processes which are expected to be rolled out in July or August, during which cheaper broadband packages will be offered to consumers," he said.