In a report titled “The Next Wave” Emerging Digital Life in South and Southeast Asia, based on a survey conducted by Deloitte, the contribution of e-commerce to Malaysia’s gross domestic product (GDP) has grown steadily, reaching about USD28 billion (RM116 billion) in 2018.
According to data, Malaysia’s digital payment pioneer, Touch ’n Go, covers the highest number of users for its e-wallet application (82.41%), followed by Boost (66.68%).
The report said that in February, Malaysia became the second country to support subway payment and entrance via QR code after Touch N’ Go joined the DuitNow system.
The extensive survey was conducted across age groups in eight countries in South and Southeast Asia showed that consumers aged between 21 and 40 years old are the leading force enabling the rapid adoption of a digital life in the region in the post Covid-19 world.
With a population of about 30 million, Malaysia is an attractive market for e-commerce in Southeast Asia due to its rapid economic growth and advanced digital technology infrastructure.
The report also pointed that Malaysia has the highest social media penetration rate. It said that as of January 2020, about 81% of the Malaysian population are active social media users, up by about a third from 2016.
The study found that Facebook is the most popular social media platform among Malaysian users as of 2020, followed by Instagram, Facebook Messenger and LinkedIn.
According to Deloitte, Malaysia also has the second highest penetration rate of smartphones (83%) after Singapore (87%).
“Overall, about 80% of Malaysia’s population are active Internet users, and mobile phone use is likewise relatively high,” it said.
The report also found that consumers’ top three reasons for opting to use e-wallets are: convenience (77%), contactless (69%), as well as value-added benefits and promotions (9%).