Malaysia Electricity Supplier Market Still Faces Challenges

According to the world clothing and shoe net, with the huge development of online shopping and the overall digital economy, Malaysia

Sellers are also increasing.

Electricity supplier has become a key driving factor for Malaysia to increase its income.

Malaysia Digital Economy Corporation director of Wee Huay Neo said that Malaysia's Internet penetration rate reached 67%, and the electricity supplier contributed 5.8% to the country's GDP, which was only 0.6% lower than its 2020 target.

"There is still much room for growth in Malaysia's electricity supplier market, which is very attractive for e-commerce sellers.

Increased consumer spending, increased Internet users and higher acceptance of mobile providers are the main driving force for the development of e-commerce. "

Neo said.

Malaysia post group CEO Datuk Mohd Shukrie Mohd Salleh said that the development of e-commerce has promoted the growth of the company's logistics business and is expected to contribute half of its revenue to the group's financial year (as of March 31, 2017).

Shukrie believes that the Malaysia electricity supplier will be more prosperous in 2017. If the enterprises fail to fully prepare and correctly position themselves, they will miss the opportunity.

Malaysia electricity supplier market has broad prospects

Malaysia is a major market for Lazada, the largest e-commerce site in Southeast Asia. CEOHans-Peter Ressel, Malaysia's Lazada station, said that in the past 6 months, Malaysia was the fastest growing Lazada operator country with an annual turnover growth rate of over 100%.

"In such markets like Malaysia, the penetration rate of Internet and smart phones is very high, laying a solid foundation for the prosperity of e-commerce."

Through the Malaysia Multimedia Development Agency (MDEC), Malaysia global innovation and Creativity Center, Malaysia Foreign Trade Development Council, Ministry of Finance and small and medium enterprises, Malaysia government is also vigorously supporting the electricity supplier industry.

Ma Yun, founder of Alibaba, was invited to serve as a digital economic adviser to the Malaysia government.

Fintech (Financial Technology) industry also continues to promote the development of e-commerce.

Ressel says nothing can shake.

Demand for electricity retailing.

IPay88, the provider of online payment solutions, predicts that the volume and sales volume of online pactions will double in 2017. The volume of online pactions is 38 million 200 thousand in 2016, and the sales volume of e-commerce is 30 billion ringgit.

"Online shopping is like window shopping.

(window shopping), people like to see what options are available and consult other people's opinions.

They like to share what they buy, and then get their comments from friends or online.

IPay88 CEO Chan KokLong said.

"2016 is the beginning of Malaysia's electricity supplier boom.

Now, with smart phones, our digital economy will start to take off.

He said.

Malaysia electricity providers still face challenges

Although the market prospect is broad, the development of Malaysia's electricity supplier industry is still facing challenges, including infrastructure, laws and regulations, cross-border payment and logistics.

"We hope that the ASEAN community can solve these cross-border problems."

According to Chan, according to different countries, the withholding tax changes between 20%-25%.

In addition, the ability of new start-ups to promote their services to the market is weak. These companies need a lot of money, but they always lack.

Ressel said that logistics and payment are the two difficulties in the development of e-commerce.

"For Lazada, we have our own warehouses, logistics teams and customer service departments to ensure excellent customer experience by controlling the majority of e-commerce processes," Ressel said.

The seller of electronic business must be well prepared to meet the needs of the market.

Shukrie believes that all sellers need to update their infrastructure.

In the second half of 2016, the Malaysia national information and Communication Association launched the "e-commerce strategy roadmap", hoping to create a vibrant e-commerce ecosystem in the country to further stimulate the development of e-commerce.

According to the planning of the roadmap, the contribution rate of e-commerce to GDP increased from 10.8% to 20.8% in 2020, and is expected to reach 170 billion mus.

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