by AZREEN HANI/ pic by MUHD AMIN NAHARUL
MALAYSIA is one of the top five leading Southeast Asia e-commerce markets in terms of growth in the coming year, according to a report from financial firm, PPRO.
The report, entitled ‘Southeast Asia: The New E-commerce Frontier’ also revealed that the outlook for Southeast Asia’s e-commerce market is expected to grow 5.5% in 2021.
It stated that despite market contractions over the course of the pandemic, the confidence of consumers in Malaysia has not been buoyed with 63% feeling positive about their future.
This has been reflected in recent spending habits with gradual growth of retail spending in Q4 2020 expected to continue.
In addition, 40% of Malaysian consumers are now using e-wallets for online purchases more than they did pre-pandemic even for lower value purchases.
“This past year accelerated the world’s e-commerce growth by a decade, and our report highlights the impressive strides that have been made this year,” Tristan Chiappini, VP, Head of Partnerships APAC, PPRO said.
“In a world that’s less physically connected than ever, borderless commerce is connecting businesses with new customers.
However, for merchants to truly capture the benefits, they must have a sharp understanding of the local payment methods which are crucial to converting sales. Those that strike the right balance between localisation and global expansion will be the true winners in 2021’s e-commerce race,” he added.
In Singapore, the value of online transactions in 2020 increased by 51%, and the trend is set to continue with the Singapore government accelerating the adoption of cashless payment methods with incentives for businesses.
Additionally, Indonesia is set to surpass India in terms of ecommerce market growth, with 55% of Indonesian consumers claiming to buy online more than ever.
Read our previous report here