Page 106 - FREN-C2021 PROCEEDINGS

Table 1. Top online the e-commerce 2020 (Net sales in million US$)
Retail website Millions
Apple US$60
Zalora US$56
Hihonor US$38
Tesco US$31
HM US$25
Source: ecommerceDB, 2020

Malaysia is the 40th largest market for e-commerce with a revenue of US$5 billion in 2020. With an
increase of 49%, the Malaysian e-commerce market contributed to the worldwide growth rate of 29%
in 2020. It shows that Malaysia has a big potential in the e-commerce market. According to
(GlobalData, 2020), Malaysia’s e-commerce market is estimated to register 24.7% growth in 2020.
The market is expected to reach MYR51.6bn by 2024. E-commerce Malaysia will contribute to Gross
Domestic Product (GDP) from 14 per cent to 21 per cent, this figure is expected will be gain in 2025.
Malaysia will be the fastest-growing e-commerce market in Southeast Asia. It is driven by rising
internet and smartphone penetration, a growing middle-class population, and tech-savvy millennials.

Kempen Shop Malaysia Online and the ‘Go-eCommerce’ campaign was introduced by the
Government of Malaysia under the Budget 2021 initiative. This campaign is to drive the country's
economic recovery after Covid-19. These efforts encourage businesses to move towards digital and
encourage people to shop online. This Campaign aims to help revive the economy by generating
demand through online platforms in short term and meanwhile in long term is to assist local
merchants and ensure the spending cycle remains continuous online.

Chief Executive Officer Lazada Malaysia, Darren Rajaratnam said that this campaign will encourage
new local merchants to join the e-commerce platform by focusing on the promotion of sectors such as
halal, handicrafts, agriculture, retail, and services to help increase sales and reach of Malaysian small
businesses. In addition, ‘Go-eCommerce’, Lazada will help Small Medium Enterprise (SMEs)
involved in e-commerce with zero start-up cost. During the pandemic, almost RM130 million sales
were achieved by Lazada, and Lazada offered about RM50 million to support SMEs with “Pakej
Kedai Pintar”. This package involved the participation of more than 300 per cent of SMEs and
enabling them to adapt and move into a phase of recovery and growth.

Malaysia Digital Economy Corporation (MDEC) through Chief Executive Officer Surina Shukri,
hoping that e-commerce will spur in Malaysia, not just because of the pandemic but there will be huge
opportunities that everyone should seize. In line with the goal of MyDigital which puts Malaysia on
the right path towards Malaysia 5.0. E-commerce will sustain in the industry not just because of
existing of coronavirus.

On top of that, since World Health Organization suggested to used contactless payment when we all
facing this outbreak. Banknotes and coins are suspected of carrying the virus and make digital
payment most preferred. Banknotes and coins is been called “dirty money (Gardener, 2020). With this
situation, consumers are more inclined to make online purchases more often because it is more
convenient and can avoid crowded places. Online is more preferable. Overall e-commerce is growing
rapidly because of coronavirus. Coronavirus forced consumers to use the internet and make it a habit
in their daily routine (Abdul Abiad, 2020).

The pandemic crisis accelerated an expansion of e-commerce towards new firms, customers, and
types of products. The E-commerce landscape has expanded the scope of e-commerce, including
through new firms, consumer segments and products (OECD, 2020). From luxury goods to all the

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