An Expert Comparative Analysis of Trends, Challenges and Opportunities
Prepared by:
Features in-depth study of Malaysia
Introduction: Understanding E-Commerce Dynamics in Southeast Asia
Study Design: The E-Commerce and Logistics Experts We Spoke to
Section One - The E-Commerce Landscape in Southeast Asia: Why it Matters so Much and Who is Leading
Section Two - Powering E-Commerce Growth in Malaysia: Overcoming Challenges and Unlocking Potential
Section Three - The Future of E-Commerce in Southeast Asia: Outlook and Recommendations
Executive Summary: 6 Key Highlights From the Insights Endnotes
Introduction Understanding E-Commerce Dynamics in Southeast Asia
Southeast Asia has always struck me as the world’s most dynamic region. From our HQ in Singapore, Blackbox Research has been closely monitoring the socio-political and economic manoeuvrings of this fascinating part of the world for more than two decades now.
In recent years, Southeast Asia has risen to global prominence—not just as a key geopolitical bloc, but as a vital gateway to the global economy. The pandemic accelerated this trajectory, driving innovation and digital adoption at an unprecedented pace. Amid this transformation, the digital economy—particularly e-commerce—has emerged as a game-changer for nations and businesses alike.
Yet e-commerce is not an easy sector to grasp, much less to measure, analyse and benchmark across countries with very different social and economic characteristics. When you add the inextricably linked role of third-party logistics (3PLs) into the question, understanding how to power economic growth in e-commerce becomes a complex picture.
This is what led us to undertake this deep-dive qualitative study. We convened 17 leading voices in e-commerce and logistics —policy analysts, industry leaders, consultants, and practitioners—who generously shared over 30 hours of their time in in-depth interviews. Their insights shed light on the challenges hindering e-commerce growth and the opportunities ripe for the taking. We thank all of the experts who gave up their valuable time and contributions to our study.
by David Black CEO & Founder of Blackbox Research
Our study zeroes in on Malaysia, a country that holds particular significance for Blackbox, not only for its strategic position in Southeast Asia but also for its untapped potential as a regional e-commerce hub. We believe Malaysia could be the lynchpin for unlocking the full promise of Southeast Asia’s digital economy.
As ever, Blackbox remains committed to taking a pulse on Southeast Asia’s future and this white paper is our latest contribution. We hope it provides a fresh lens for policymakers and business leaders seeking to capitalise on this rapidly growing sector. As always, we welcome your feedback and look forward to fostering further dialogue on this important issue.
Study Design
The E-Commerce and Logistics Experts We Spoke to
The primary insights for this white paper are drawn from more than 30 hours of in-depth interviews with 17 experts, analysts and practitioners within the e-commerce and logistics ecosystem in Southeast Asia. To gain a rich cross-section of expertise and perspectives, we sought leading voices from different domains.
Respondents’ names and job designations are anonymised in this white paper; verbatims and attributions to their contributions are ascribed to their persona types instead. Where any secondary research is included, it is cited directly within the paper.
Who the Experts Are
5
4
4
3
1 E-Commerce Business Leaders Policy and Regulatory Analysts
Digital Economy Academics, Commentators or Researchers
MSME Advocates or Consultants Logistics and Supply Chain Experts
Where the Experts Are From
8
Malaysia
7
Singapore
1
1
Philippines
Enriched intelligence, at speed.
The primary research for this study was performed using Blackbox’s pioneering interview and rapid-reporting tool that uses advanced AI to conduct in-depth interviews, perform analysis and deliver insights with unprecedented speed. Find out more.
Executive Summary 6 Key Highlights from the
Southeast Asia’s digital economy is at an inflection point, with e-commerce By benchmarking Malaysia against its regional peers, we uncover the strengths, that could shape the region’s e-commerce future.
Southeast Asia’s E-Commerce Race: Malaysia Poised but Trails Singapore
According to perceptions of e-commerce performance regionally, our experts see Malaysia as a strong contender, but Singapore outpaces its peers, with 59% of experts ranking it #1 in e-commerce due to advanced infrastructure and strong government backing. Malaysia’s relative strengths lie in its rising digital adoption and strategic location, but closing gaps in innovation and logistics is essential to compete at the highest level.
Strategic Location and Growing Digital Base: Malaysia’s Competitive Edge
Malaysia’s central position in Southeast Asia, paired with a young, digitally savvy population and widespread mobile penetration, makes it a natural hub for e-commerce. The country’s strong courier networks and homegrown e-commerce brands are already laying the groundwork for growth.
E-Commerce Logistics
Competitiveness Key for Growth
High logistical costs, especially in shipping between Peninsular and East Malaysia, create bottlenecks that reduce e-commerce efficiency. Streamlining logistics with better technology, consolidated delivery routes, and multi-region distribution centres could significantly cut costs and improve delivery timelines, enhancing Malaysia’s competitiveness regionally.
Third-Party Co-Dependent
Third-party MSMEs inefficiencies
Strengthening platforms, improvements, into a
Cross-Border Southeast Bridging Rural
While regional customs leverage cies, simplify costs, domestic
The disparity areas across in digital untapped equitable
Southeast Asia is on the cusp of an e-commerce revolution, and Malaysia has the transformation. By tackling logistics inefficiencies, fostering collaboration between innovation, Malaysia can position itself as a regional leader. As the region works toward will also drive Southeast Asia’s collective potential, creating a vibrant and
the Insights
e-commerce driving growth across the region. strengths, challenges, and opportunities
Third-Party Logistics: A Critical Co-Dependent Partner
Third-party logistics providers (3PLs) are vital for enabling MSMEs to scale their e-commerce operations, yet inefficiencies in service quality and high costs persist. Strengthening partnerships between 3PLs, e-commerce platforms, and government bodies could drive much-needed improvements, transforming Malaysia’s logistics landscape a regional exemplar.
While Malaysia’s strategic location gives it access to larger regional markets, high international shipping costs and complex customs procedures limit its cross-border potential. To fully leverage its position, Malaysia must harmonise regional tax poli simplify customs processes, and reduce shipping costs, enabling businesses to expand beyond domestic boundaries.
Bridging the Digital Divide: Unlocking Rural Potential Across the Region
disparity in digital connectivity between urban and rural areas limits growth for e-commerce, not just in Malaysia but across Southeast Asia. Expanding internet access and investing digital literacy programs in underserved regions could unlock untapped markets, driving inclusive growth and enabling more equitable economic participation.
the opportunity to play a central role in this public and private sectors, and embracing toward shared prosperity, Malaysia’s succes and interconnected digital economy.
Section one:
The E-Commerce Landscape in Southeast Asia
Why it Matters so Much and Who is Leading
E-commerce in Southeast Asia is experiencing explosive growth, cementing the region’s position as a global powerhouse in digital commerce.
The Gross Merchandise Value (GMV) traded in the e-commerce sector in the region is set to hit US$159 billion in 2024, a year-on-year increase of 15%.1
This will translate to US$11 billion in profit, a 2.5x increase from 2022.2
By 2030, many forecasts expect these market size numbers to double, while Singapore, Indonesia and Philippines have been ranked as the top 3 fastest-growing e-commerce economies in the world (Malaysia is 7th).3
Southeast Asia has become a crucible for e-commerce globally.
Many observers have credited demographic shifts for this growth – the proportion of middle class households across Asia Pacific grew from 18% to 28% between 2013 and 2023, while internet connectivity more than doubled from 27% to 61% in the same period.4 This rise in discretionary spending and far wider internet access is a heady cocktail for e-commerce riches.
Given this trajectory, it is no surprise that Southeast Asia is being closely scrutinised as a crucible for digital economic growth and a bellwether for the future of e-commerce.
Benchmarking Expert Perceptions of E-Commerce Leadership
While population size heavily influences leadership in e-commerce GMV or revenue stakes – Indonesia, Thailand and Vietnam understandably lead the pack in that regard5 – our study goes beyond the numbers, exploring expert perceptions of e-commerce performance across the region. By combining these qualitative insights with hard sales figures, we uncover a more nuanced and actionable understanding of what truly drives success in Southeast Asia’s fast-changing e-commerce landscape.
The findings show that Singapore is seen as the undisputed leader in Southeast Asia’s e-commerce landscape, with Malaysia, Thailand and Vietnam almost impossible to separate in behind. For the best ranking economies, the distinguishing characteristics most cited are high internet penetration and digital adoption, mature digital and logistics infrastructures, and supportive policymaking environments.
Singapore was especially highlighted for market maturity and its strength in crossborder shopping, bolstered by a robust fintech ecosystem; while Malaysia stood out for its strategic location, robust infrastructure and moderate market size, which make it a natural hub for regional e-commerce trade. Malaysia stood out for its strategic location, robust infrastructure, and moderate market size, positioning it as a natural hub for regional e-commerce trade. However, consumers’ sensitivity to delivery costs and longer shipping times between urban and rural areas remain significant barriers that prevent it from securing the top spot.
Vietnam and the Philippines were bottom of the table according to our experts, perceived to be facing more infrastructural challenges
and digital division than their counterparts in Southeast Asia. This notwithstanding, it is acknowledged that their young, tech-savvy populations and growing mobile-first consumer bases offer real hope for improvement.
What These Perceptions Tell Us
While market size and growth rates are important indicators of economic potential, they don’t fully capture the ecosystem factors that define sustainable success. Singapore’s top ranking reflects that it is seen to be demonstrating traits that mark it as a model for e-commerce excellence despite its small market size. Malaysia’s positive report card among the experts too belies its actual performance in GMV terms, indicating it is perceived to have good foundations in place for e-commerce growth.
Evidently, e-commerce is not just about scale; it is about the interplay of infrastructure, innovation, policy, and consumer readiness. Getting this balance is key for Southeast Asian economies who want to capitalise most on the e-commerce opportunity in the coming years.
“Singapore’s small but tech-savvy population, high smartphone penetration, and excellent logistics make it a clear leader in e-commerce.” (Academic)
“Malaysia benefits from its central location and government efforts, but rural areas and cash-based transactions remain obstacles.” (Policy and Regulatory Analyst)
Section two:
Powering E-Commerce Growth in Malaysia
Overcoming Challenges and Unlocking Potential
As we take a deep dive into Malaysia’s e-commerce ecosystem, we find it to be moderately developed with some unique competitive advantages over its neighbours, although counter-balanced by some sticky challenges. The prevailing view in our study is that things are going reasonably well, but there is significant room for growth, especially if a better balancing act can be created between the e-commerce companies and the 3PLs.
Malaysia Holding its Own in Southeast Asia.
In section one we learned that our expert panel perceives Malaysia as the (narrow) no.2 e-commerce leader in Southeast Asia. Delving a bit deeper, we find that views on the key vectors of policy, innovation, workforce and infrastructure all bode reasonably well for Malaysia too.
Ranking Malaysia on Aspects of E-Commerce Performance
Malaysia’s policy environment in terms of supporting the e-commerce sector
Malaysia‘s approach to innovation and workforce upskilling for e-commerce Malaysia‘s infrastructure (i.e. logistics and supply chain networks) in supporting the growth of e-commerce sector
Qn. Compared to other SEA countries, how
Evidently, Malaysia is seen to have reached at least competitive parity with its neighbours on these metrics, albeit with some key nuances:
• The policy environment received no “worse than” ratings, but few “better than” ones. In a region marked by political instability, this could be seen as a par score, at best.
• Innovation and the workforce received the most worrying ratings, indicating that there is work to be done in this area, especially with competition from nearby Singapore an ever-present threat for a brain-drain.
• Infrastructure seems to be the playing field where Malaysia can win or lose. A significant proportion of the panel see this as the country’s key competitive advantage.
Mid-Table Malaysian Performance in E-Commerce Growth
Malaysia’s e-commerce GMV grew by approximately 13% year-on-year, reaching $35 billion in 2024, a respectable figure but still trailing behind regional peers. By comparison, Vietnam and Indonesia recorded higher growth rates, with Vietnam experiencing over 20% GMV growth in the same period.6 Malaysia’s growth is solid but lacks the rapid acceleration of some of its neighbours, highlighting potential for further development.
At-a-Glance: Malaysia’s Perceived Strengths
and Weaknesses
After performing a cross-sectional analysis on perceptions of Malaysia’s relative e-commerce strengths and weaknesses, the top three most-cited for each are below:
Strengths
High Digital Penetration and Young, Tech-Savvy Population
“Malaysia has high digital adoption, providing a solid (and growing) base for mobile e-commerce shoppers, and a young tech-savvy population.” (MSME Consultant)
Advanced Infrastructure and Logistics
“Malaysia’s infrastructure, i.e. national and international transportation, is better than most Southeast Asian countries. This is especially the case for West Malaysia.” (Academic)
Strong Government Support and Initiatives
“The government is providing ecosystem players in the gig economy with relevant employment-related benefits and making sure anyone in the gig economy has the correct protection.” (Policy Analyst)
Weaknesses
Logistical Challenges and High Fulfilment Costs
“Logistics between Peninsular and East Malaysia are still developing, leading to higher shipping costs and delays.” (E-Commerce Business Leader)
Digital Infrastructure and Connectivity Gaps
“I think there are still fairly wide gaps between citizens at the top and those at the bottom in terms of money, access to digital, mobile phone penetration, availability of logistics, and access to finance.” (Digital Economy Commentator)
Limited Market Size and Economic Constraints
“The market size of Malaysia is a limiting factor for achieving better economies of scale. Some bigger companies would rather go into Thailand, Vietnam and Indonesia due to their much larger market sizes.” (E-Commerce Business Leader)
Additional themes
• Multilingual environment
• Widespread digital systems
• Open Consumer Market, Strategic Geographic Location
There is nuance to beware of in analysing these sentiments, with the interrelated nature between the positives and negatives betraying the complexity of charting Malaysia’s ecommerce growth:
• High digital penetration is certainly a boon for Malaysia, but it must be acknowledged that this is not a uniquely competitive advantage in the region, as all Southeast Asian countries can say the same to slightly varying degrees.
• High Cost of Doing Business
• Lack of Innovation and Entrepreneurial Dynamism
• There are advanced infrastructural advantages, but our experts recognise that the strengths in West Malaysia and urban areas do not necessarily extend to East Malaysia.
• The level of policy encouragement for the sector is broadly appreciated, which will be needed to overcome the natural impediment of a population and consumer base far smaller than that of nearby giants.
Just How Easy is it to do E-Commerce in Malaysia?
On a general level, our experts find Malaysia to be a welcome environment in which to do e-commerce:
• General Ease of Doing Business: 9 of the 17 experts say doing e-commerce is “somewhat” to “very easy” in Malaysia. Only one considers it difficult.
• Cost: Similarly, there is a balanced view of the cost of e-commerce operations.
• Policy Proactiveness: 14 of 17 feel the government has been proactive in promoting the e-commerce sector in Malaysia – an overwhelming endorsement of the effort of the government, if not necessarily the impact.
This implies that the raw materials needed for a vibrant e-commerce system are present, so long as the barriers to further growth can be overcome. How Would You Describe the Cost of Doing
How Easy is Doing E-Commerce in Malaysia?
What Are Seen as the Main Challenges?
Logistics and delivery challenges—high costs and last-mile issues in rural areas, particularly— are identified as the the top barriers to successful e-commerce in Malaysia. Additionally, fragmented payment systems and inconsistent digital adoption hinder business transactions and competitiveness.
Logistics and Delivery Challenges Digital and Technology Gaps
Delivery timeliness and high costs become a concern outside of urban centres, affecting the efficiency of e-commerce operations and customer satisfaction.
High digital literacy is not universal, especially among smaller enterprises and consumers in rural areas.
Payment System Limitations Cost
Only 6 of the 17 experts believe Malaysia’s current e-commerce structure effectively promotes sector growth. For those who feel the system is hindering progress, the accumulation of costs borne by sellers— including rising shipping and logistics expenses, import costs, and taxes— combined with a weak currency, is making it increasingly challenging for them to remain cost-competitive.
There is still a reliance on cash-on-delivery and international credit cards are not very common, resulting in some friction in the e-commerce interchange.
“Logistics costs can be the most significant cost factor for e-commerce companies, as it can easily impact very significantly the profit margin, especially in countries like Malaysia where outside of the metropolitan centres like Kuala Lumpur, the cost for last-mile delivery may raise significantly, especially into less urban areas.”
(E-Commerce Business Leader)
The Critical Role of 3PLs
Understandably, the growth potential for Malaysia’s e-commerce sector in large part rests on the symbiotic relationship it shares with third party logistics providers – one cannot succeed without the other. To take the next step for significant growth, the widespread sentiment in our study circled around two key logistics issues that are seen as particularly crucial.
1
The costs of e-commerce are presently seen as being on the precipice of becoming too expensive to maintain competitiveness. There is a universally held view among our expert panel that any increase in 3PL costs would have a detrimental effect on the e-commerce sector in Malaysia. Such costs would be passed on the customers, which would in turn push customers back to in-store shopping and reduce e-commerce sales. Some experts also forecast that investors could be spooked by an uncompetitive market and take their dollars elsewhere in Southeast Asia.
2
Managing 3PL Costs Driving Innovation for More Widespread Distribution
Easing access to rural areas, especially in East Malaysia, is a critical challenge that must be addressed to reduce delivery times, lower costs, and build customer trust. This aligns with the NESR’s focus on efficient logistics as a key pillar for e-commerce growth. Achieving these goals would require a combination of agile policymaking and calculated investments by 3PLs, such as establishing multiple fulfillment hubs in hard-to-reach areas. One logistics expert in our study estimated that setting up a distribution hub in East Malaysia could reduce his costs by more than 60% while meeting the growing demand for Same-Day Delivery services.
Online Shopping to Become More Expensive? “Forget It”, Say Malaysians
Online Shopping to Become More Expensive? “Forget It”, Say Malaysians
A recent survey of Malaysian businesses and consumers by Milieu Insight7 found that Malaysia’s booming online retail sector, despite its impressive growth, also faces challenges. High and inconsistent delivery costs are the primary concern for both consumers and sellers, with 64% saying that shipping fees should be reduced, and a significant percentage of shoppers indicating they would shop less or switch sellers if fees increase. The study highlights that consumers prioritise affordability and reliable delivery, while sellers struggle with high logistics expenses impacting profitability and competitiveness.
A recent survey of Malaysian businesses and consumers by Milieu Insight7 found that Malaysia’s booming online retail sector, despite its impressive growth, also faces challenges. High and inconsistent delivery costs are the primary concern for both consumers and sellers, with 64% saying that shipping fees should be reduced, and a significant percentage of shoppers indicating they would shop less or switch sellers if fees increase. The study highlights that consumers prioritise affordability and reliable delivery, while sellers struggle with high logistics expenses impacting profitability and competitiveness.
Catalysing Growth in the Logistics Sector
It is clear that this is an area the Malaysian government is well aware of, as Budget 2025 places great emphasis on transportation infrastructure development in an attempt to tackle inefficiencies and reduce costs. With 27.66 million shares traded in the Transportation and Logistics Index, strong investor interest underscores the expectation that enhanced trade flows and efficient supply chains will significantly boost Malaysia’s e-commerce ecosystem.8
“[3PL cost rises] would have a significant impact for Malaysian sellers, impacting already thin profit margins and the sustainability of their businesses (especially given the price sensitivity of Malaysian consumers). Rising costs might also drive local and international investors to look towards cheaper markets like Thailand or Indonesia.”
(MSME Consultant)
Section three:
The Future of E-Commerce in Southeast Asia
Outlook and Recommendations
At the collective level, e-commerce in Southeast Asia is in rude health. Online sales are growing fast, powered by rising rates of digital literacy and the emergence of Gen Z digital natives into adulthood with purchasing power. Yet the extent and growth rate of e-commerce success is not uniform across economies, and for the likes of Malaysia –whose population is much smaller than its regional neighbours (Singapore aside) – elevating itself to become a genuine e-commerce leader will require a shared public-private commitment to building the sector together.
Malaysia a Strong Contender in the Race to Southeast Asia’s E-Commerce Summit.
Southeast Asia is well poised to become an epicentre of e-commerce in the coming years. What remains to be seen is which economy truly grasps the opportunity to become the de facto leader of the thriving sector. The interviews with our expert respondents revealed a number of recommended steps that could be taken by Malaysia, in particular, to accelerate its standing in the ASEAN e-commerce race and position itself as a strategic hub for the region.
What Should the Government Do?
A. Increase Investment in the Digital Economy
The majority of experts credit the Malaysian government for effective policymaking in helping to boost the e-commerce sector, citing MyDIGITAL, the National E-Commerce Strategic Roadmap (NESR), the Digital Economy Blueprint, digitalisation grants, and the Digital Free Trade Zone as existing initiatives that have had a positive impact.
“The focus on digitalising SMEs has been fantastic. NESR offers resources and training to help businesses adopt digital tools, making things like customer data, marketing, and payment much easier to manage.”
(E-Commerce
Business
Leader)
The message from our experts across the board is “more of the same, please!” Areas for future policy focus should include
targeted programmes for talent development in e-commerce and cybersecurity, digital skills acceleration programmes for MSMEs, and grants to support fulfilment set-ups in non-urban areas. This can be achieved through workshops on e-commerce skills like digital marketing and branding, subsidised access to tools such as inventory management software, and mentorship initiatives linking MSMEs with established e-commerce players to enhance their competitiveness and digital readiness.
B. Invest in Infrastructure and Technology
More ambitious investments in infrastructure will be critical, particularly in logistics and internet connectivity in underserved areas, as well as in developing stronger cybersecurity systems to combat the increasing prevalence of scams. Leveraging practical technologies such as route optimisation software can significantly enhance delivery efficiency, while real-time tracking systems boost customer satisfaction by providing transparency. Additionally, implementing automated sorting facilities can improve operational throughput, reducing delays and costs. Experts emphasise the importance of establishing regional e-fulfilment centres as a priority to address last-mile delivery challenges and ensure seamless logistics across the country.
C. Regulate to Innovate
Malaysia’s relative position of strength in e-commerce has been bolstered by its open trade environment. However, there is concern that increased bureaucracy and taxation could negatively impact growth. The government can focus on implementing impactful regulations that foster innovation and enhance operational standards for e-commerce logistics, aligning with the goal of regional competitiveness. Encouraging greater tax incentives could also act as a magnet for large-scale investment flows. Additionally, the creation of a centralised, dedicated digital regulatory body would be beneficial in promoting regular stakeholder engagement and adaptive policymaking.
“I believe there’s a real opportunity to act as a hub for the region, given that Malaysia has a very centralised position across other key markets such as Indonesia, the Philippines, and Thailand. For that to happen, however, regulation definitely has to adapt in a way that makes it very easy for companies. Regulations and processes should be as easily set up as they are in Singapore, for example.”
(E-Commerce Business Leader)
D. Promote Greater Financial Inclusion
In the face of ever-increasing costs in doing business, for MSMEs to take the next step in their growth, Malaysia will need greater financial inclusion. Promoting access to microloans, government backed loan guarantee schemes and facilitating partnerships with fintech firms are all potential policy moves that would make an impact.
E. Streamline the International Supply Chain
Customs procedures should be streamlined as far as possible, with harmonised tax policies and reduced tariffs to simplify cross-border trade. These actions would enhance supply chain efficiency and make Malaysia more attractive for international e-commerce activities. Greater effort in encouraging the normalisation of digital wallets for cross-border transactions would also be helpful.
“I believe that greater cross-border focus will help increase the volume of purchases for Malaysian sellers. Maintaining a low tax on low-value-good items between countries would be great. In addition, the technology to sell on cross-border marketplaces would need to be developed to allow for seamless sales.”
(Logistics Expert)
What Should Enterprises Do? What Can Be Done Together? 2 3
A. Take More Risks and be More Innovative
While Malaysian entrepreneurs are seen as being quick adopters of new ideas and modes of doing business, there is a perception that such new ideas are usually imported from elsewhere. Business leaders could be more enterprising and dynamic, leveraging successful e-commerce trends such as social selling faster and to a greater degree. There are also calls to be more ambitious and customer-focused by offering perks such as Same Day Delivery, which is common in neighbouring countries.
Businesses must implement more localised marketing techniques to address Malaysia’s regional and cultural diversity, and enhance customer experience, perhaps through personalised services and loyalty programmes.
B. Optimise Partnerships with 3PLs
3PLs are identified as crucial to the success of most e-commerce operations, and enterprises should pay close attention to finding the best 3PL partners to work with under competitive, mutually-beneficial terms.
For the 3PLs themselves, adopting consolidated delivery routes and setting up multi-region fulfilment centres would make shipping more reliable and enhance their competitiveness. Adding services such as guaranteed easy-returns and real-time tracking would boost customer experience and make 3PLs more attractive to the e-commerce players.
Advancing Malaysia’s digital economy and e-commerce sector will require robust public-private collaboration. Some barriers to growth, particularly the logistical challenges in East Malaysia, are too complex for the government or individual businesses to resolve alone. Coordinated and inclusive dialogue is essential, with policies developed from the ground up to reflect the perspectives of all stakeholders, including e-commerce platforms, sellers, and third-party logistics (3PL) providers.
“There is a need for stronger public-private collaboration and integration of sustainable logistics practices.” (Policy Analyst)
Encouragingly, the government has already begun to address these challenges. In October 2024, Deputy Communications Minister Teo Nie Ching highlighted Malaysia’s courier, express, and parcel market is projected to grow to US$1.58 billion in 2025. She credited recent infrastructure developments as a key driver of this growth and urged local companies to capitalise on government policies and initiatives to further scale their operations.9
The
message is clear: by aligning public and private efforts, Malaysia can better position itself as a competitive e-commerce and logistics hub in Southeast Asia, unlocking new opportunities and shared prosperity for the sector.
Endnotes
1Google, Temasek, and Bain & Company. e-Conomy SEA 2024. Retrieved from https:// services.google.com/fh/files/misc/e_conomy_sea_2024_report.pdf (Page 13).
2Google, Temasek, and Bain & Company. e-Conomy SEA 2024. Retrieved from https:// services.google.com/fh/files/misc/e_conomy_sea_2024_report.pdf (Page 14).
3Asian Development Bank. (November 2023). E-Commerce Evolution in Asia and the Pacific. Retrieved from https://www.adb.org/sites/ default/files/publication/922086/e-commerce-evolution-asia-pacific-opportunities-challenges.pdf (Page 7).
4Fintech News. (August 6, 2024). E-Commerce in Southeast Asia Soars with Thailand and Vietnam Leading in Growth. Retrieved from https://fintechnews.sg/99926/e-commerce/e-commerce-southeast-asia-thailandvietnam/
5Fintech News. (August 6, 2024). E-Commerce in Southeast Asia Soars with Thailand and Vietnam Leading in Growth. Retrieved from https://fintechnews.sg/99926/e-commerce/e-commerce-southeast-asia-thailandvietnam/
6Google, Temasek, and Bain & Company. e-Conomy SEA 2024. Retrieved from https:// services.google.com/fh/files/misc/e_conomy_sea_2024_report.pdf
7Milieu Insight. (October 16, 2024). Rising Costs and Service Inconsistencies Threaten Malaysia's Online Retail Growth. Retrieved from https://www.mili.eu/my/insights/ rising-costs-and-service-inconsistencies-threaten-malaysias-online-retail-growth.
8Business Today. (October 25, 2024). Budget 2025: Catalysing Growth in Key Sectors of the Malaysian Market. Retrieved from https://www. businesstoday.com.my/2024/10/25/budget2025-catalysing-growth-in-key-sectors-ofthe-malaysian-market/.
9Malay Mail. (October 23, 2024). E-Commerce Boom: Malaysia's Courier, Express, and Parcel Market Poised to Hit RM6.9b in 2025. Retrieved from https://www.malaymail.com/news/ money/2024/10/23/e-commerce-boom-malaysias-courier-express-and-parcel-marketpoised-to-hit-rm69b-in-2025/154585
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