KUCHING: Southeast Asia is experiencing a transformative e-commerce boom, with Malaysia emerging as a key player in this digital revolution.
This was revealed in the Blackbox Research white paper, ‘Grasping the E-Commerce Opportunity in Southeast Asia’.
According to the experts surveyed in the study, Malaysia has steadily emerged as a key player in Southeast Asia’s digital economy, ranking second in regional e-commerce performance alongside Indonesia and Thailand.
This, the report said, is due to the nation’s strategic location, robust infrastructure, and moderate market size, which make it a natural hub for regional e-commerce trade.
However, despite this promising growth, it stated that Singapore outpaces Malaysia, with 59 per cent of experts ranking it number 1 in e-commerce due to advanced infrastructure and strong government backing.
Blackbox Research chief executive officer and founder David Black commented that for Malaysia, the opportunity is there to capitalise on its momentum and break out as a regional leader.
“To make it happen, businesses need to juggle how they adapt to changing customer habits while staying resilient and cost-efficient.
“Logistics players will be key to this, by creating faster, more seamless connections between sellers and buyers through innovative and cost-effective solutions.
“And policymakers have a big role to play in encouraging growth with smart regulations and focused investments,” he said.
As Malaysia focuses on strengthening its e-commerce ecosystem and solidifying its position as a regional leader, the report pointed out that logistics has become a critical area requiring urgent attention.
It stated that high logistical costs and inconsistent delivery performance among different service providers, especially for shipping between Peninsular and East Malaysia, remain significant hurdles, creating bottlenecks that disrupt efficiency and hinder growth in the sector.
Findings from the white paper reveal that only six out of 17 industry experts view Malaysia’s current e-commerce framework as supportive of sector development.
Layered costs — courier charges, import taxes, and the challenges posed by a weak currency — are cited as major barriers to cost competitiveness for businesses operating in the digital economy.
“Therefore, adopting advanced logistics technologies, optimising delivery routes, and establishing multi- region distribution centers will give Malaysia a strategic edge in the increasingly competitive e- commerce landscape,” it said.
In light of this, the report stated that advancing Malaysia’s digital economy and e-commerce sector will require strong public-private collaboration.
“Inclusive dialogue is crucial, with policies shaped by input from all stakeholders, including e-commerce platforms, sellers, and logistics providers.”
Encouragingly, as the paper notes, the government is already addressing these challenges, with Deputy Communications Minister Teo Nie Ching highlighting in October 2024 that Malaysia’s courier and parcel market is projected to reach USD1.58 billion by 2025.
She credited infrastructure developments for this growth and urged local companies to leverage government initiatives to scale their operations further.
Meanwhile, programmes like the Digital Free Trade Zones streamline cross-border trade and widen global market access for micro, small, and medium enterprises (MSMEs).
“As Malaysia prepares to establish itself as a leading regional e-commerce and logistics hub, fostering collaboration among stakeholders and adopting a unified approach will strengthen the ecosystem, drive innovation, and promote sustainability.
“This collective effort is crucial for positioning Malaysia as a dynamic leader in Southeast Asia’s digital economy while achieving long-term, inclusive growth,” the report said.
