Malaysia e-commerce income up 23.1%

by FAYYADH JAAFAR / pic by TMR FILE

MALAYSIA’S income generated from e-commerce has amounted to RM279 billion due to increasing trend during the lockdown.

According to the Department of Statistics Malaysia’s (DoSM) Malaysia Digital Economy 2021 report, the e-commerce income from January to September was RM801.2 billion, an increase of 23.1% year-on-year, with Selangor, Kuala Lumpur, Johor and Penang leading the way.

In terms of quarter-on-quarter growth, it maintained a positive trend with 4.3%.

DoSM attributed the improved performance to the new normal during the Covid-19 pandemic, which boosted digital usage in Malaysia.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said during the first Movement Control Order (MCO) in 2020, only 38.1% of establishments were operational, compared to 92.4% during the Recovery MCO (RMCO).

“In terms of overall income, 79.6% of establishments reported a decrease during the MCO and 46.9% in the RMCO. Meanwhile, for e-commerce income, 19.1% of establishments experienced an increase during MCO, and 26.1% in RMCO,” he said in a statement yesterday.

The latest report by DoSM also found that 26.6% of Malaysia’s GDP was contributed by the ICT sector, which comprises the gross value added of the ICT industry (14.2%) and e-commerce of other industries (8.4%).

Given the e-commerce income by market segment in 2019, the income of the local market dominated with a contribution of 87.6%, compared to the international market’s 12.4%.

The value of the income generated was RM591.8 billion and RM83.5 billion, respectively.

Accordingly, e-commerce income by type of customer via business-to-business registered the highest income of RM449.6 billion with a 66.6% contribution, followed by business-to-consumer at RM194 billion (28.7%) while business-to-government recorded RM31.8 billion (4.7%).

Mohd Uzir added that ICT services, which comprise the activities of publishing, motion picture, video, and TV programme production and sound recording, among others, recorded a gross output of RM163.8 billion in 2019, an increase of 5.7% compared to 2018.

“In line with the rapid growth in gross output, the value of intermediate input and value added also increased, 5% and 6.4% respectively, to record RM78.2 billion and RM85.6 billion for the year 2019,” he said.

In 2019, 86.2% of establishments used computers, while 85.2% used the Internet, with Putrajaya being the most popular place to access the Internet, with a record of 99.9% penetration rate.

In 2020, the number of establishments using computers and the Internet continued to grow, with the percentage of establishments using computers and the Internet increasing to 80% and 89.6%, respectively.

The majority of those who have implemented technologies in their businesses use mobile Internet and technology (63.8%), social media (60%), websites (48.5%) and cloud computing (46.8%).

“Digital technology has the potential to propel Malaysia’s economic growth.

“The Malaysia Digital Economy Blueprint is the foundation for Malaysia’s transformation into a ‘regional digital pulse’ which is expected to boost productivity, stimulate innovation, and improve livelihoods by harnessing the Internet, big data, the Internet of Things, artificial intelligence, and other technologies,” Mohd Uzir said.