February 22, 2024

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Malaysia has SEA’S highest number of digital natives

The year’s end will see the number of digital consumers in Southeast Asia reach 310 million. Currently, Malaysia is the country with the largest population of digital users.

A new joint study from an American global management consultancy and the world’s largest social media platform entitled Digital Consumers of Tomorrow, Here Today reportedly surveyed online users in Southeast Asia (SEA) to study their purchasing behaviour. One of the noteworthy findings is that the events of 2020 have inadvertently accelerated the growth of Southeast Asia’s (SEA) digital economy.

SEA had been initially projected to reach 310 million digital users by the end of 2025, in two parties’ 2019 digital consumer report, Riding the Digital Wave. Instead, the pandemic and its consequent effects have seen online behaviour in the region far outstripping the initial forecasts, to the extent the five-year expectation is now set to be reached by the end of this year.

For the first time, this will place SEA’s collective online retail market penetration ahead of India’s. Moreover, seven out of every 10 (or 70%) consumers in SEA that is 15 years old or older will complete a digital transaction by the end of the year.

Of that online purchasing age group of 15 years and above, Malaysia has the highest percentage of digital consumers in one country, with a clear majority of 83% have bought at least one item online in the past year.

Additionally, social distancing and other limitations that prevent physical contact in 2020 have had the added impact of swinging 48% out of the 83% in Malaysia into becoming first-time digital shoppers, further propelling Malaysia toward being the SEA nation with the highest digital penetration.

The report also found that online retail gross merchandise value (GMV) in Malaysia is expected to double from US$4 billion (RM16.6 billion) to approximately US$9 billion by 2025. In the meantime, Malaysians are spending more online and are buying from more segments online with an average of 5 categories purchased from in 2020, up from 3.8 categories in 2019.

Further, for the first time since 2018, online grocery purchases more than doubled its growth (2.2x) in Malaysia in 2020, causing the country managing director of the social media platform’s Malaysia branch to remark that the upswing in Malaysian digital adoption had never been more pronounced as it was in 2020.

In Malaysia alone, the company is expecting approximately 4 million new digital consumers in 2020. Online is no longer just one of many channels, for many businesses, it has become their main channel. It is crucial for businesses to connect with consumers in frictionless ways and to replicate in-person interactions through social platforms, messaging, and short videos as much as possible to drive discovery and loyalty.

A partner at the global management consultancy firm noted that, on the other hand, the digital consumption behaviour in fast-growing SEA is developing quickly, with online spending now expected to triple by 2025 to close to US$150 billion.

The rise of digital consumers in the SEA region has accelerated at a white-knuckle pace, and their discovery habits are changing. Reinforcing brand reliability and standing out from the crowd matters now more than ever, as consumers are more open to switching brands and rely more on e-commerce platforms.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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