5 reasons to make Malaysia your brand’s next e-commerce destination

12 July, 2022

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APAC, the Asia-Pacific region comprising Southeast Asia and Oceania, represents a huge amount of potential for e-commerce brands looking to extend their reach. And not without good reason. Asian markets are growing at an impressive rate of approximately 20% year on year. APAC shoppers love to buy cross-border, particularly to get hold of goods made by Western brands. Plus, many APAC marketplaces charge relatively low fees, making APAC a potentially more cost-effective place to do business than regions such as Europe or North America.


If your e-commerce brand is considering APAC as a destination, then you would be wise to focus your attention on Malaysia. Here, we explain five things that make this country one of APAC’s most enticing markets.

  1. Malaysia is the third largest state in the ASEAN union

After Indonesia and Thailand, no other state in the ASEAN (Association of Southeast Asian Nations) economic union is larger than Malaysia. With a population of almost 33m and a relatively high GDP per capita, more and more foreign merchants are capitalising on a wealth of sales opportunities in the country.

  1. Malaysia’s scope for additional e-commerce market growth

Like so many other regions, Malaysia saw a massive upswing in e-commerce demand during the COVID-19 pandemic. The good news for online retailers is that this demand looks set to endure with 92% of newly converted online shoppers intending to continue buying online.

As attitudes and technology evolve, more new customers, especially those living outside of urban areas, will discover e-commerce and its benefits in the coming years. Malaysia’s online economy is forecast to reach an impressive value of US$30 billion by 2025 and in that time the projected compounded annual growth rate (CAGR) of e-commerce is expected to be 17%.

  1. Strong digital uptake in Malaysia

Malaysian consumers are becoming increasingly tech savvy, as evidenced by high usage of platforms such as YouTube (93.7%), WhatsApp (91.9%), Facebook (89.1%) and Instagram (74.7%). This digital engagement presents retailers with a range of effective advertising and sales channels to support growth.

  1. Malaysia’s sound infrastructure

One of the biggest advantages for online retailers selling to Malaysia is the country’s mature and stable infrastructure. The country has the logistics networks needed to deliver smooth customer experiences and, according to figures from Datareportal, internet penetration of 84.2%

  1. Cross-border consumer purchases in Malaysia

Data shows that Malaysian shoppers are comfortable making online purchases from retailers all over the globe. In fact, a surprising 54% majority of Malaysian purchases in 2020 were cross-border. Reasons for this preference include price sensitivity, product availability and a desire for higher-quality items.

Grow your e-commerce business in Malaysia with Asendia

If you’re keen to learn more about the Malaysian e-commerce market, Asendia can help. We are experts in global e-commerce logistics, have strong partnerships with the region’s leading last mile delivery companies and a range of products to meet the needs of you and your customers.

Our e-book, Why is Malaysia an ideal e-commerce destination? is free to download and contains more insights and guidance on this promising market. Read it today.


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