Asian markets are economically and culturally extremely diverse, and Singapore and Malaysia are no exceptions. The two countries differ in their level of e-commerce adaption and their buying habits. This has led to a diverse e-commerce landscape. This report focused on the benefits offered by cross-border ecommerce in Singapore and Malaysia to ISOs, PSPs, Acquirers and their merchants around the world.
Even though the ecommerce markets in Singapore and Malaysia are relatively small compared to Asian giants like China and Japan, the study illustrated that these two smaller countries stand out with respect to the size of the cross-border share of the ecommerce market and record-high internet and smartphone penetration, offering unique business propositions, which will support merchants to adapt their products and strategies locally, following the particularities of this rapidly growing ecommerce region.
The study sheds light on various aspects of the ecommerce landscape identified in Singapore and Malaysia, such as market growth, technological advancement, social media, consumers’ and merchants’ behavior and specificities, drivers and barriers for cross-border ecommerce, as well as the top selling product categories in the two countries, m-commerce and preferred payment methods.
Singapore and Malaysia generate almost half of total online retail sales in the region of Southeast Asia, even though they count for 8% of the region’s population. Furthermore, an estimated 55% of all ecommerce in Singapore and 40% of all Malaysian ecommerce is cross-border, an extremely high percentage compared to cross-border ecommerce figures for Japan (18%) and South Korea (25%).
The report also showed that credit cards are the preferred payment method for about 80% of the cross-border transactions, and American and Chinese web shops are very popular amongst Singaporean and Malaysian consumers. In order to successfully expand into these new markets the study proves that merchants need to partner with an international card processor with a global acquiring network, who has expertise in all aspects of cross-border ecommerce and extensive understanding of rules and regulations, multi-currency processing and risk management.
For this study, over 25 industry experts in Singapore and Malaysia were interviewed and industry trends and opportunities were discussed with local representatives of multinationals such as PayPal, Expedia and DHL. In addition, executives of local companies with a major foothold in the local e-commerce industry have been included in the study, such as AirAsia, Singapore Post, Lazada, iPay88, Luxola. Apart from the information collected during the interviews, the research took into account the findings of other several industry reports.
We hope this paper will give you good insights in the cross-border e-commerce landscape in Singapore and Malaysia. Feel free to scroll through our White Papers Library