Table of Contents

No. Contents Pages

1 Abstract 1

2 Introduction 2-3

3 Literature review 4

4 Finding and Discussion 4-7

4.0 Finding

4.1 Higher standard of Living 8

4.2 Generate Job Opportunities 9 – 10
4.3 Lower Cost 10
4.4 Sell internationally make more people know about 11
Malaysia
4.5 Offer Product Datasheet to Customers for Comparison 11
4.6 Increase of Internet User in Malaysia 12
4.7 Boosting Productivity At All Levels 13
4.8 Personalized Online Experience 14
5 Conclusion 15 – 16

6 Reference 17 – 18
Abstract
Electronic commerce also known as e-commerce is an electronic activity which allows
consumers exchange goods and services with no barriers of time and also distance. Now
technology is getting more advanced, e-commerce has expanded rapidly and is taking off in
Malaysia. According to the statistics department of Malaysia, the growth rate of e-commerce in
Malaysia is expected to grow from the 10.6% in 2016 to 20.8% by 2020 [16] (Tang, 2018). This
opportunity have brings a lot of advantages to Malaysia. In this study, we are going to investigate
the existing and potential benefits as a result of the Malaysia’s efforts in strengthening the e-
commerce industry. After we had tried to experience some different e-commerce and gather
information from the internet. We found out that e-commerce is very important and give people
many kind of benefits. There are higher standard of living, generate job opportunities, lower cost,
sell internationally make more people know about Malaysia, offer product datasheet to customers
for comparison, increase of internet user in Malaysia, boosting productivity at all level ,
personalized online experience. This paper will include the interpretation of the benefits that e-
commerce brings which we had found through this study.
Introduction
E-commerce also known as electronic commerce or internet commerce. E-commerce
refers to commercial transactions conducted online. Commercial transaction involve the
exchange of value across organizational or individual boundaries in return for products or
services. This mean that whenever you buy and sell something using the Internet, you’re
involved in E-commerce.
There are four main types of ecommerce models that can describe every transaction that
take place between customers and businesses. First of all, Business-to-customer (B2C). This
transaction happen between businesses and consumers. In B2C ecommerce, business is the one
selling products or services to consumers. Examples, you buy a pair of shoes from an online
retailer. Nowadays there are innumerable virtual stores and malls on the internet selling all types
of consumer goods. The most recognized example of these sites is Amazon which dominates the
B2C market. Secondly, Business-to-business (B2B) e-commerce refers to the electronic
exchange of products, services or information between 2 businesses. Example, online directories
products and supply exchange websites that allow businesses to search for products, services or
informations and to initiate transactions through e-procurement interfaces. In 2017, Forrester
Research predicted that the B2B e-commerce market will top $1.1trillion in United State by
2021, accounting for 13% of all B2B sales in the nation. Thirdly, Consumer-to-consumer (C2C)
is a type of e-commerce in which consumer trade products, services and information with each
other online. These transactions are generally conducted through a third party that provides an
online platform. Example, you sell your old smart phone on eBay to another consumer. Lastly,
Consumer-to-Business (C2B) is a type of e-commerce in which consumer make their product or
service available online for companies to bid on and purchase. C2B platform is a market that
sells royalty-free photographs, images, media and design element, such as iStock.
Malaysia is an attractive market for E-commerce in Southeast Asia due to its dynamic
economy and developed infrastructure for digital technologies. Besides, Malaysia has about 25
million active internet users which are the 80% of the population.
 Malaysia’s E-commerce sector is on a growth trajectory and is already benefiting from
the implementation of programs under the National E-commerce Strategic Roadmap’s (NeSR)
six thrust areas. The National E-commerce Council (NeCC), comprised of various ministries and
agencies was established to drive the implementation of the roadmap towards doubling
Malaysia’s E-commerce growth rate to reach a GDP contribution of USD 53 billion by 2020. The
roadmap outlines the Government’s intervention in six thrust areas:
1. Increase seller adoption of E-commerce

2. Accelerate adoption of E-Procurement by businesses

3. Remove non-tariff barriers (e-Fulfillment, cross-border, e-Payment, consumer protection)

4. Realign existing economic incentives

5. Make strategic investments in key E-commerce firm

6. Promote Malaysian businesses to increase cross-border E-commerce

Literature review
The studies conducted in journal titled Electronic-commerce and its global impact, the
benefits of strengthening the e-commerce industry in Malaysia were introduced with the proved
resources. E-commerce has played the significant role in building the future with high
technologies. The future e-commerce will be more successful and reliable by the consumers to
conduct their business. Other than local business, e-commerce in our country also tends to
develop towards global business, such as sell internationally to increase the productivity in
Malaysia.
According the article “Malaysia’s e-commerce on a growth trajectory” by The Star
Online, the e-commerce in Malaysia has improved the average annual growth rate of 12.5
percent from year 2010 to 2017 [17] ("Malaysia's e-commerce on a growth trajectory", 2018). With
this amazing growth, the government strongly wanted to maintain and enhance the growth of e-
commerce in our country. Therefore, the government take the steps in registering the Small and
medium enterprises (SMEs) and implementing Digital Free Trade Zone (DFTZ) pilot project
which aimed to guide the companies in adoption of e-commerce. The e-commerce is a great form
of commercial business that is flourishing and enhancing business in today’s market.
The review of relevant literature has highlighted the importance and the development of
e-commerce in Malaysia. The study also explained the e-commerce increased the economy
towards a rich and capable of producing a more beneficial income [11](Omar and Anas, 2014).
The government is ensuring the advancement and investment of e-commerce are possible in all
stages of the society. E-commerce is a role in spreading trade relations around the world though
communication technology.
We found that the impacts of e-commerce to the consumers are changing their lifestyle.
The e-commerce provide convenience to the consumers make them more run into the
technology’s era. They start to discover new technology to replace the things we used and make
them more technological and user-friendly. For instance, e-commerce websites and online
transactions are the brand-new elements to the individuals in the middle of 1990s.
In conclusion, the study has showed e-commerce brings a lot of advantages to our
country as the result Malaysia’s efforts in strengthening the e-commerce industry. These are
leading our country to a high technology future which is competitive with other countries.
Findings

Based on the data from Statista’s Digital Market Outlook survey stated that Malaysians
spent more than US$6 billion online in 2018, with purchases of consumer goods already
outweighing spend on travel. Malaysia’s E-commerce sector is enjoying strong growth. With
Statista’s data, the travel sector grew by a more modest 18%, but that was enough to deliver an
additional US$400 million in spending compared to 2017. However, the online sales of products
like clothes, electronics, toys, furniture, and groceries grew by 30 percent in 2018, up by more
than US$730 million versus 2017 spending.

Across all the other countries in Southeast Asia, the country’s online grocery sector is
growing most rapidly, with annual purchase value increasing by an impressive 39 percent in
2018. That puts Malaysia in second place in Statista’s ranking of the world’s fastest-growing
grocery markets in 2018, with only Singapore seeing a greater year-on-year increase.
 [10] ("Image: Malaysia Unemployment Rate | 2019 | Data | Chart | Calendar | Forecast", 2019)
The aforementioned data illustrates that the unemployment rate of Malaysia from September
2018 to August 2019. In Malaysia, the unemployment rate is measured the number of people
actively looking for job as a percentage of the labor force [10] ("Malaysia Unemployment Rate |
2019 | Data | Chart | Calendar | Forecast", 2019). Overall, it can be seen that unemployment had
the higher rate in both March and April 2019. The other months were remained contain at 3.3 per
cent. According to the news of Asia Sentinel on 10 September 2019, Malaysia has the youth
unemployment rate at 10.9% officially [8] (Hunter, 2019). The national unemployment rate is 3.3
per cent which means that the youth unemployment is three times over than that. This result is
really disappointing, and e-commerce has provides the opportunities to the job seeker who just
graduated from their university or collage. In the future, e-commerce will be more popularized.
This will generate more job opportunities to satisfy the social needs.
 [12] ("Image: Malaysia - urbanization 2007-2017 | Statista", 2019)
The column graph above displays the urbanization of Malaysia from 2007 to 2017. Taken as a
whole, the graph stated that the urbanization was increased marginally each year. On the other
hand, it also means that Malaysia is a developing country which full of expectation. In 2017,
75.45 per cent of Malaysia’s total population lived in urban areas and cities rather than rural
areas [12] (Plecher, 2019). Over the last ten years, the urban population in Malaysia rose up from
68.36 per cent to 75.45 per cent. This is an evident proving that standard of living in Malaysia is
higher and higher. E-commerce had contributed in the urbanization because it developing the
economic and improved the nation income. Therefore, the government of Malaysia has the
opportunity to urbanize the rural areas. Hence, the tax collection from e-commerce contributed a
lot in urbanization the rural areas.
Discussion
Higher standard of Living
What is higher standard of living? Higher standard of living often related to wealth,
comfort, material goods and necessities available to a certain area [2] (Development, n.d.). E-
commerce caused our life become more convenient, comfort and quality. In addition to this,
increase of the economic development in our country is important in bring us a higher standard
of living.
As we know e-commerce is an activity of electronically buying or selling of something
through internet. It enabled transactions include all those mediated by digital technology via
website, mobile apps an so on. Because of this, the transaction became more convenient and
easier without worry about the distance and time. This is very effective especial for those people
who live in rural area. This is due to maybe the certain items is not available at their area, but e-
commerce solve this problem perfectly. They can purchase the item online and transfer the online
through online banking. For example, Lazada is a platform that allows their consumers purchase
without worry about the transport issue. This brings more convenient in people’s life.
Next, economic of Malaysia have been developed through e-commerce. In this case,
business organizations such as Lazada Malaysia and Shopee Malaysia are able to attract
customers from anywhere in the world. When the number of customer base increase, it will
resulted the production of these organizations increase. Greater revenues have been generated
then the tax of the organizations needed to pay to the government increase. At the end, it fostered
the expansion of the national income [1] ("Advantages of E-Commerce to Society and Nation", 2019).
Thus, the volume of production and service will accelerate economic growth directly.
Furthermore, e-commerce helps in urbanization. Malaysia is a developing country which
means that there are many aspects that we need to be improved. According to the latest view, e-
commerce increase national income. These revenues generated by the nation are allocated
towards the development of infrastructure in the remote or rural areas. More essential facilities,
health services, education and utilities will be improved. The adequate of infrastructure will
cause the people live in the rural area become more comfortable and convenient. After all,
alleviation of poverty in the county will be achieved.
Generate Job Opportunities
In these recent years, Malaysia is facing youth unemployment crisis. According to the
news of Asia Sentinel on 10 September 2019, Malaysia has the youth unemployment rate at
10.9% officially [8] (Hunter, 2019). The national unemployment rate is 3.3 per cent which means
that the youth unemployment is three times over than that. This result is very disappointing.
Fortunately, e-commerce can generate more and more job opportunities for the younger
generation and solve this problem effectively.
First of all, the job will be generated is e-commerce marketing coordinator. Marketing
coordinator prefer someone who has a leadership ability and full of responsibility. This is due to
the e-commerce organizations need someone that can ensure the implementation and execution
of marketing efforts across the company. The major job of a marketing coordinator is developing
and executing marketing plans and strategies. They also help in planning, implementing,
monitoring marketing, branding and advertising activities in order to improve the brand’s image
[18] ("What does a Marketing Coordinator do?”, 2017). If the plan is successful, it will help the
company increase their revenues.
Next, for e-commerce companies web designer is very important. This job which generated
by e-commerce have to create a clarity, concise, and attractive web pages to draw the attention of
the existing and potential customers. They need to apply any methods or ideas to attract the
consumers. For example, the web pages can have an easy to follow layout and structure with a
lot of images. Therefore, who can design creatively to support the e-commerce transaction
website is needed. This brings the opportunity to the young generations who full of new creative
ideas.
E-commerce uses internet to transact a business. So, it also brings the opportunity to
generate jobs for software developer. Software developer is an individual that builds and create
software and application (apps). They must have the knowledge about the programming
language and how to code for software. A great developer is capable of handling many aspects of
developing an application. Such as scalability, security and testing. Hence, this generate job for
someone who have the bachelor of software engineering and computer science.
In conclusion, the advance of technology had already eliminated some of the human’s job.
For instance, bridge toll collector, cashier, railway station ticket seller and factory worker [7]
(Harris, 2018). Although some of our job have been taken by technology, but e-commerce
generate new job opportunities for us. There are more other jobs like e-commerce project
manager, software analysts, e-commerce technical lead and e-commerce architects. For more
information, due to the long-term global growth outlook of e-commerce it can also reduce the
rate of unemployment.

Lower Cost
E-commerce store has a lower financial cost to start up the business compare with
starting a retail store. E-commerce store will cut off more than 60% of the price which has been
run through a physical store. Physical retail stores have to pay up to thousands to rent one of
their business location. Besides that, they also have several upfront costs such as store down
payment, renovation of store, buying inventory and sales equipment.
When determining transaction cost, business have to factor in expenses required to
maintain and process the activities. An online store does not need a separate set of supervisors or
cashiers. At the most, it needs one person monitoring the sales. Physical retail stores also have to
pay staff to work and run each location. E-commerce store can essentially remain open 24/7
without hiring employees to watch over the store and protect the items. Physical retail store may
also need to hire security staff depending on the product value in the store. E-commerce aren’t
confined to a set amount of shelf space, there is no limit to the number of items that can be sold
online and the stock can expand exponentially. E-commerce also can reduce transaction costs by
streamlining supply-chain management and distribution. If a store expands its product selection
online, more orders can be shipped from the warehouse or wholesaler directly to the customer.
The store can now serve lucrative niche markets. It doesn't have to stock a lot of hard-to-find
parts in its showroom, for example: its customers can order the parts online and ship them to
their door. Unlike traditional retail store, E-commerce can be up and running in just few clicks.
Marketplace like Lazada, 11street, Shopee only require you to set up an account before you start
selling. A much faster and cheaper way to start selling your products compare to physical retail
stores.
Sell internationally make more people know about Malaysia
Next, the benefit of e-commerce is the product of Malaysia can be sold internationally. A
new brand can sell to customers around the world easily. According to sell internationally, the
new revenue potential of business will be excavated. After a business global, it can touch more
international customer groups. When a certain product is successful, it can increase the revenues
from new customer even the company have saturated their markets domestically. Globalizing
will make a company achieve the new heights. If the revenues of a company increase, the tax
increase and foster the nation income. Through sell international it will get a new viewpoint on
the customers who are from another country. Therefore, Malaysia will be known by more people
from different country.
Moreover, Malaysia can attract more human resources from the other country. After the
e-commerce of Malaysia globalizing, it can attract some more potential and experience
employees come and work for the nation. This will increase the talented people in Malaysia, and
created more perfect and amazing e-commerce business.

Offer Product Datasheet to Customers for Comparison

E-commerce will become one of the favored ways of purchasing as consumers can get
the information of the product by searching from the online website. Customers also can get
description and info from an online product catalog. And best of it, most of this information
does not cost anything to create or maintain. Through data, it can help customers to take a wise
decision over their purchases. Besides that, consumers might need to know the price of the
product before purchase, so they will search for the product at E-commerce platform or certain
official website. They also comparing the price of the product at different website to find out
which is the cheaper price or more worth to purchase, because some market will have high price
but free shipping and free gift is given to customer. Without driving to the store, consumer can
easily compare and contrast product. One of the most important detail of the product that
customer will need to know is the reviews. Good reviews of the products or services will make
customers to have more confident in your products, it helps a lot with the sales of the products.
Increase of Internet User in Malaysia
Technological progress in the sphere of information and communication is inspiring the
adoption and development of brand-new shopping systems, leading to a rapid growth in non-
store shopping as the individual can purchase products without needed to move to the retail shop.
The emergence of non-store shopping and new trends in technology have promoted the e-
commerce and commit to consumers they will contribute few methods of impacting and serving
consumers in the future [3] (Bigne, 2005). E-commerce is a kind of activity in buying or selling
goods using internet and doing transactions by internet. Malaysia gained some benefits with the
help in e-commerce and one of them is increased the users of using internet. Purchasing items on
the internet make the work quickly, conveniently and without moving from home can reduce the
wasting of time. The internet operators have invested heavily with the rising number of internet
users to expanding the facilities and upgrading the quality of internet services such as 3G, LTE
network and 5G in Malaysia [9] (“Internet Users Survey”, 2018).
The development of internet facilities has changed the way internet users went online.
The internet users have better coverage and services that making them more comfort when doing
performance on internet. The internet users who like online shopping can purchase their satisfied
products with comparing the products on different e-commerce websites. For instance, the users
can compare the quality of products on Shopee, Lazada, Zalora, 11street and others to purchase
better products. With the convenience of e-commerce, the number of internet users are
sustainable climb up in Malaysia.
By following the trend, there are a lot of internet users started purchase products online.
The more the internet users buy products online, the more it makes the users’ trust on online
purchasing and online banking facilities [9] (“Internet Users Survey”, 2018). This has led to
more opportunity in flourishing digital economy. In addition, the advent online banking facilities
also lead to the cashless society in Malaysia. For example, e-wallet is one of the applications that
can pay for goods and services. E-wallet is a virtual wallet binding with your credit card to make
internet transactions by scanning Quick Response (QR) code. Therefore, individuals in Malaysia
in the future will persuasive to using the technologies online to convenient their life.
Boosting Productivity At All Levels
Malaysia’s e-commerce industries were growth accelerated from year 2016 and make a
lot of advantages to our country. One of the potential benefits after Malaysia put their efforts in
strengthening the e-commerce industry is boosting the productivity in all levels. It is because e-
commerce has the outcomes to increase of market transparency at the macro level and at micro
level a higher productivity by offer many opportunities to businesses and individual consumers.
Tun Dr. Mahathir Mohamad had taken a lot of steps heading to future rich with digital
economics. To reach the achievement of Vision 2020 a list of measures and way forward for the
development Small and Medium Enterprises (SMEs) in Malaysia has been defined by 11th
Malaysia Plan (11MP). SMEs has provided a lot because they comprise for 99 percent of
business in the nation. Government’s strategies in SME Masterplan and 11MP are mainly target
in upgrade the productivity with the goal to achieve the core target of Vision 2020 [15]
(“Improve Productivity and Competitiveness, Seize Opportunities in ASEAN Market”, 2015).
In addition, the government had approved the free-trade agreements (FTAs) which could
give a hand to the companies to export and improve Malaysia’s competitive advantage, increase
quality investment and establish sustainable long-term economic growth. It is important for
Malaysian business beyond our boundary, explore more opportunities and build up wider market.
Malaysia has six regional FTAs with Association of Southeast Asian Nations (ASEAN) Free-
Trade Agreement (AFTA) which are China, Korea, Japan, Australia, New Zealand and India.
AFTA attract foreign direct investment to our business and it helps in improvement of the quality
of investment [6] (Government to make Malaysia a developed nation with good policies,
economic inclusion - Tun M, 2019). Therefore, the productivity in e-commerce was accelerated
with supporting of FTAs and AFTA. The profits gained by our country also beneficial in all areas
we develop in Malaysia.
The Digital Free Trade Zone (DFTZ) Pilot Project 2017 had attract among local and
international e-commerce players. It was because DFTZ is a milestone in the national digital
economy agenda which implementing a sustainable terrace for SMEs and enterprises to organize
their business online. There are more players will understand the value of participating in this
initiative when the increasing of companies started to export by the way of DFTZ. SMEs
convenience to organize businesses and services with a state-of-the-art platform by DFTZ. This
will establish that DFTZ allow corresponding opportunities to Malaysian SMEs and focus on
encouraging them to penetrate the export market and enhance our cross-border efficiency [5]
(Malaysia On Track to Achieve 21% E-commerce Growth By 2020, 2018). Export market is one
of the main that will lead to increase the productivity and economics in Malaysia.
Personalized Online Experience
The benefit of the e-commerce is personalized online experience. The meaning of website
personalization is build a customized website to attract customer come to a web page without
much extra work. It is because no like the physical shop need to nurture from the first minute. A
personal website need be design according the visitor’s characteristics. It is because can attract
more people visit the website. Nowadays, it has a lot of advanced data collection tools, so that
the web personalization is not that hard. According the website personalized, it is the best way to
convert calls to action (CTA). Call to Action is designed to let users think of doing certain
behaviors instead of asking and asking users to do it. So using the call and request as a
translation will let the designer think about how to do the Call to Action design. There is a
misunderstanding in the design. Calling and asking users to do something differently with
"letting users want to do something they want" is completely different. After the appeal and the
request to go out, there are still calls and summons. In fact, the two are similar, but the
summoning is more designed to let the user unconsciously trigger the behavior. A good CTA can
strengthen people to take a survey, start a free trial and watch a demo. Then, website
personalized also help to understand your customer easily. CTA can let the visitor to tell what
industry he works, what position in your work and other information relevant. This makes it easy
to understand the needs of visitor. After understanding the customer's needs, you can design the
website according to the customer's requirements. By doing this, you can increase the click rate
of your website.
Conclusion
In a nutshell, the result of the Malaysia's efforts in strengthening the e-commerce industry
brings us many existing and potential benefits. We can conclude that e-commerce is an
appropriate way to start a business. E-commerce gives us an effective way and a new platform to
start a business through the network. In Malaysia, e-commerce started to grow when the
marketplace like eBay Malaysia and Lelong was created. Here are the top 5 e-commerce
websites in Malaysia based on their mobile apps ranking:

App Ranking Website Monthly Traffic (Web)

(iOS)

1 Lazada 32 million

2 Shopee 11 million

3 11Street 8.4 million

4 Zalora 1.66 million

5 Hermo 718,000
According to this research, Malaysia’s shoppers more likely to shop through mobile apps like
Shopee and Lazada. In this study, we learn that Malaysia as a developing country got a lot of
opportunity to start a business with small investment. From some online statistics, the revenue of
e-commerce in Malaysia was make-up about US$1.3 billion. This represent that the environment
of e-commerce is ready for growth in Malaysia. Therefore, e-commerce is a very potential
platform to start a business. Furthermore, Malaysia is one of the highest in Southeast Asia of
mobile and internet penetration. The logistics and legal infrastructure of e-commerce was
prepared to take more daily orders. For those who want to grow their business through e-
commerce platform, this will be a very good opportunity to reduce your loss. This is due to e-
commerce cost low in investment and it is needed for current society and economic. In
conclusion, e-commerce not only brings
benefits to the businessman. It also brings many advantages to our country and us
(Malaysian).
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