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E – commerce income up 10.4% y – o – y in 1Q 2023

Malaysia’s e – commerce income by establishment rose 10.4% year – on – year (y – o – y) to RM 291.7 billion in the first quarter of 2023, primarily driven by the manufacturing and services sectors, said the Department of Statistics Malaysia (DOSM).

It said e-commerce income in 2022 amounted to nearly RM 1.10 trillion, an increase of 6% compared with the previous year.

“These positive results can be attributed to the government’s initiatives aimed at establishing a regional e – commerce gateway, investing in e – commerce startups, promoting innovation through a regulatory sandbox, and enhancing communication and broadband facilities.

“These efforts have yielded substantial economic benefits, including increased adoption of digital technology and overall improved performance,” it said in a statement on Thursday (July 6).

According to DOSM, income generated from e – commerce surged 23.9% to RM 1.037 trillion in 2021 from RM 675.4 billion in 2019.

“For the local market segment, which includes sales conducted within Malaysia, a substantial increase of 25.5%, amounting to RM 932.7 billion, was recorded in 2021, while the international market segment increased 11.9% to RM 104.5 billion (in 2021),” it said.

Meanwhile, DOSM said usage of computers had increased to 93.8% in 2021 from 86.2% in 2019, usage of the internet grew to 90.6% in 2021 from 85.2% in 2019, and web presence usage improved to 63.3% in 2021 from 53.9% in 2019.

It said although the COVID – 19 pandemic had a negative impact on the overall economy, the restrictions and safety measures imposed led to a surge in online shopping and digital transactions.

“Overall, the COVID – 19 pandemic acted as a catalyst for the growth of e-commerce in Malaysia,” it said.

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