Only 30% of SMEs are in online retail: Minister

PETALING JAYA: The e-commerce sector is expected to reach RM72 billion by the end of 2015, but with only 30% of Malaysian SMEs involved in online retail thus far, Communication and Multimedia Minister Datuk Seri Ahmad Shabery Cheek.
He said issues with broadband coverage, consumer trust in online retail, and logistical concerns stand in the way of SMEs expanding into e-commerce.
"70% of households have broadband coverage, more can be done to widen it. Fears of online security and credit fraud causes potential consumers to remain wary. The lack of a proper delivery system means most retailers have to rely upon third-party courier services."
With seven of the largest Internet-based companies globally focusing on e-commerce, Ahmad stated SMEs could no longer afford to sit down and watch idly.
"At the end of 2014, the value of Malaysian e-commerce was estimated at RM53 billion. By 2016, this could touch up to RM88 billion."
Citing an example, Ahmad said, "The annual #MyCyberSale event generated RM67 million in profit for 2014 alone. It also saw 179,000 online shoppers, with participating retailers reporting their site visits tripled up to 4.7 million."
Expressing confidence that e-commerce would bloom once the issues are resolved, Ahmad said: "Developing our e-market players to be competitive enables us to expand into Asean. This is worth considering, with Asean's 600 million strong population and potential for regional market growth of 25% per annum."