Annual 2022 Recorded RM1,099.7 Billion
PUTRAJAYA: Malaysia’s e-commerce income by establishment recorded a notable growth of 10.4% year-on-year in the first quarter of 2023, to reach RM291.7 billion. This growth was primarily driven by manufacturing and services sectors.
In the previous year, e-commerce income for 2022 amounted to RM1,099.7 billion, rose 6.0% growth compared to the previous year. The Department of Statistics Malaysia (DoSM) reported today on the release of Usage of ICT and E-Commerce by Establishment 2022.
On quarterly basis, the first quarter of 2022 recorded an income of RM264.3 billion, which increased to RM273.8 billion in the second quarter. The upward trend continued, with e-commerce income registering RM274.6 billion in the third quarter of 2022 and RM287.1 billion in the fourth quarter of the same year.
These positive results can be attributed to the government’s initiatives aimed at establishing a regional e-commerce gateway, investing in e-commerce startups, promoting innovation through a regulatory sandbox, and enhancing communication and broadband facilities.
These efforts have yielded substantial economic benefits, including increased adoption of digital technology and overall improved performance.
According to the DoSM, the income generated from e-commerce experienced a remarkable 23.9% surged 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.
In contrast, the international market segment increased by 11.9%, reaching RM104.5 billion.
Furthermore, analysing the e-commerce income based on the type of customer, Business to Consumer (B2C) transactions experienced a significant growth, rose 26.2% to RM308.9 billion. Business to Business (B2B) transactions increased 25.9% to RM713.1 billion. Conversely, the Business to Government (B2G) declined -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 local market segment surged 25.8% to RM426.8 billion, while the international market grew 3.2% to RM34.0 billion.
E-Commerce expenditure by type of market via 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 Malaysia’s e-commerce activity. The restrictions and safety measures imposed to control the spread of the virus, such as lockdowns, social distancing, and limited physical store operations, have led to a surge in online shopping and digital transactions. Overall, the Covid-19 pandemic has acted as a catalyst for the growth of e-commerce in Malaysia.
