iPay88 Sdn Bhd, an NTT Data company, as well as the Malaysian-based leading provider of online payment service and payment solution provider in ASEAN, today shares some of its insights into the country’s upcoming Services Industry’s sub-sector of eCommerce.
Executive Director of iPay88 Chan Kok Long, says that the company’s payment gateway systems support over 60% of eCommerce businesses in Malaysia.
|Chan Kok Long, Executive Director, iPay88|
He says, “From the transaction patterns and volume recorded from our systems, it is highly indicative that this Services sub-sector is poised for strong growth in 2016. In fact, within year 2015 of iPay88 operations, the total value of eCommerce transactions recorded in our payment systems have increased by 100%.”
Chan says, “Malaysia is ripe at the timing whereby the domestic market demand is well-supported by wide and stable online connectivity and broadband solutions. Additionally, website provider services are in abundance, IT security technologies, as well as ample government-lead, financial payment policies and initiatives to support more Malaysian companies in moving their business online.”
“Doing business online offers a lower cost of operations from many aspects – the biggest advantage being the capability to span across geographical borders, meaning that you can reach out to possibly more lucrative overseas market easily,” he says.
As of 2015, Bank Negara recorded that 50% of Malaysian companies have some form of digital presence – referring to any organization that has a website or has basic email or online communications. However, Chan points out that only a mere 5% of Malaysian companies have adopted eCommerce.
According to a Statista report, the revenue projected in the eCommerce market (excluding eServices) in Malaysia for 2016, is expected to touch USD991.1 million. On a more global scale, within the next five years, eCommerce sales worldwide is projected to eclipse USD3.5 trillion (from eMarketer report).