- The first quarter of 2023 recorded a US$62.511 billion growth
- Annual e-commerce income for 2022 was US$235.646 billion
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 US$62.511 billion (RM291.7 billion). This growth was primarily driven by Manufacturing and Services sectors. In the previous year, e-commerce income for 2022 amounted to US$235.646 billion (RM1.09 trillion), rose 6.0% compared to the previous year. The Department of Statistics Malaysia (DOSM) reported last week 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 US$56.635 (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.
(RM 1 = US$0.214)
According to DOSM, the positive results can be attributed to the government’s initiatives aimed at establishing a regional e-commerce gateway, 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 solid 23.9% growth 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 of 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 with only the B2G sector declining during the same period.
E-commerce expenditure recorded an increase of 23.6% to RM460.8 billion in 2021 (table below). The local market segment of expenditure surged 25.8% to RM426.8 billion, while the international market expenditure grew 3.2% to RM34.0 billion.
E-commerce expenditure by type of market via B2B rose 20.5% to RM403.1 billion in 2021, followed by B2C with 85.0% to RM50.8 billion. Meanwhile, 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%). DOSM data showed that Information & Communication, Financial & Takaful/ Insurance, and Real Estate sectors fully utilised the use of the internet and computers in their businesses.
Consistent with the experience globally, even though the COVID-19 pandemic had a negative impact on the economy, 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.
[Ed: DOSM is conducting the Economic Census in 2023 and would greatly appreciates the cooperation of readers in providing information and ensuring the success of this census. Please visit www.dosm.gov.my for more information.]
DOSM has launched OpenDOSM NextGen as a medium that provides a catalogue of data and visualisation to facilitate users in analysing various data. OpenDOSM NextGen is an open source data sharing platform and accessible through open.dosm.gov.my portal.
DOSM will release the Advance GDP Estimates beginning in the second quarter of 2023. These advance estimates are an initiative by DOSM to provide an overview of the economic performance four weeks prior to the release of the Quarterly GDP.