June 10, 2022 
Let’s take stock of how much the corporate world has altered in the previous two years as we approach the second anniversary of the COVID-19 pandemic.
Most people were confined to their houses after the Movement Control Order on March 18, 2020. They had no alternative except to go online to gather what they needed, from daily necessities to entertainment. Millions of Malaysians who had become online consumers suddenly sparked exponential development in digital commerce, and retailers already using e-commerce platforms saw their online companies take a stand.
This explosive growth in e-commerce was unprecedented and unexpected. Before the COVID crisis, analysts projected that the transition to a dominating e-commerce environment would take more than a decade to reach where we are now. McKinsey & Company, a global business consulting organization, agrees, noting in their 2021 survey ‘US Consumer Sentiment and Behaviors During the Coronavirus Crisis’ that pandemic had compressed ten years of e-commerce growth into just three months 2020.
According to FedEx’s white paper ” E-commerce Megatrends to Watch”, the global e-commerce market is predicted to increase by 47 percent in the next five years. Also, Asia’s e-commerce growth is pegged at 51 percent. Malaysia followed a similar path, reporting a 37 percent increase in e-commerce sales by 2020. In the first nine months of 2021, the Department of Statistics Malaysia reported a 23.1 percent increase in e-commerce, indicating that this trend is here to stay. Between 2020 and 2024, the market is predicted to grow at a Compound Annual Growth Rate of 14.3 percent, reaching $12.6 billion. This expansion shows no signs of slowing down nearly two years later, as it has quickly become the new normal.
Malaysian consumers and businesses have quickly adapted to the new e-commerce norm. Any playbook for the post-COVID age must now include a reimagination of new e-commerce frontiers and the identification of recent digital trends that have developed from the epidemic era. Malaysian SMEs, particularly those in the retail sector, should be aware of these issues as part of their long-term strategies to fully capitalize on the e-commerce market.
Revolutionizing The Digital Space
The COVID-19 epidemic has caused significant changes in consumer behaviour, opening up new opportunities for every Malaysian SME to engage on the global stage.
Customers who are exceptionally digitally savvy are the first such digital trend. Malaysia already boasts the most significant proportion of online buyers in the area, at 88 percent of the population, significantly higher than the regional average of 78 percent. According to the SYNC Southeast Asia analysis performed by Facebook and global management consulting company Bain & Company, this is expected to climb to 90% by 2021. Malaysia also has the most excellent internet penetration rates in Southeast Asia and the most smartphone users, with 80 percent of Malaysians shopping online at least twice a week.
The move towards convenience goes hand in hand with the above trend. From browsing to purchase, payment, and delivery, the modern Malaysian consumer wants online shopping to be simple. Major e-commerce platforms in Malaysia have decreased delivery times to under a week everywhere, adding to the convenience aspect. Customers from other countries who shop on Malaysian websites are in the same boat – they don’t want to wait too long for their purchases.
Many Malaysian SMEs were able to survive the pandemic by migrating online, but many more are still having trouble with their internet presence. Businesses should capitalize on these trends by using business-to-business (B2B) e-commerce platforms to connect with clients and sell locally and globally items. Improved cross-border logistics, better network coverage, and ease of connectivity from logistics service providers will help e-commerce businesses in the Malaysian digital sector.
While Malaysia’s e-commerce market is still in its infancy compared to mature economies like China and Japan, it is nevertheless one of the region’s most significant. Malaysia stands out due to its cross-border eCommerce market share scale. Malaysia’s young population underlines the country’s future e-commerce potential. Malaysian customers are frequently seeking excellent deals and access to foreign goods. Still, these patterns may shift if more local brands prioritize providing superior customer experiences, products, and prices than international competitors.
Wrapping Up
In comparison to other ASEAN countries, Malaysia’s e-commerce business is flawless.
Malaysia’s eCommerce economy and advanced infrastructure for modern and digital technologies make it a unique market for businesses in Southeast Asia.
The changing eCommerce trends have positively impacted the prospects of numerous retailers. Malaysian shoppers are more tech-savvy, preferring to shop online to save time and remain safe at home.
