E-commerce and the spirit of Merdeka

 

In the face of the Covid-19 lockdown, the rakyat found a new route to resilience and independence by accessing the necessities of life through the spontaneous rise of e-commerce platforms.

During those challenging times, online shopping and e-commerce income grew by 33% in 2020 and helped many micro, small and medium enterprises (MSMEs) to survive and even grow their businesses beyond their normal neighbourhood customer base.

Simultaneously, the Sharing Economy emerged as a transformative way of earning a living through platforms and apps for buying and selling products and services.

This ecosystem extends beyond e-hailing rides and food delivery, encompassing freelancers and micro-entrepreneurs across various professional and services sectors.

Both the Sharing Economy and e-commerce platforms have become vital components of our economic landscape, offering individuals and MSMEs new avenues for growth and collaboration.

By leveraging digital ecosystems, businesses can reach wider audiences and tap into new opportunities, ensuring continued resilience and success.

Our research conducted for the Malaysian Digital Economy Corporation (MDEC) estimates that the sharing economy will be worth RM313 billion and employ 4.3 million people by 2030.

Separate data forecasts that total e-commerce transactions will reach RM1.65 trillion by next year. This underscores the significant economic impact and potential of the e-commerce industry in driving Malaysia’s digital economy forward.

For MSMEs, which make up 97.4% of overall business establishments, it is crucial to access this market for their growth and sustainability.

To fully capitalise on the opportunities offered by the e-commerce market, we must invest back into the ecosystem. This includes adopting new technologies, enhancing the digital infrastructure and upskilling the workforce to stay competitive.

Independence, agility and resilience are key to thriving in the evolving landscape but so is trust among stakeholders.

By strategically investing in these areas, MSMEs can enhance their competitive edge, expand their reach and contribute meaningfully to the broader economy.

For the sustainable growth of MSMEs, it is equally important to consider the long-term relationship between buyers and sellers, which goes beyond simple transactions.

This is built on trust, transparency and effective communication, leading to long-lasting relationships and continued business success.

For local businesses, an essential element to building long-term business resilience and overall success is deliberately being customer-focused or putting the buyer’s needs at the forefront.

Customer feedback also helps sellers to grow, improve and adapt to growing and shifting demands or innovate towards a forecasted trend.

Many e-commerce platforms have become household names through excellent service and buyer experience which drives brand loyalty and growth.

Thanks to these platforms, Malaysian businesses have evolved into regional brands trusted by customers and partners throughout Asean and beyond.

In the global and regional e-commerce landscape, however, competition is huge and providing excellent service is not merely about delivery and completing transactions on time.

To compete successfully online vendors must create memorable experiences that foster deep connections with customers.

These connections translate into loyalty, repeat business and organic growth, turning satisfied customers into brand advocates.

The importance of trust in the buyer-seller relationship is built through consistent, reliable service and transparent business practices.

User-friendly, trusted e-commerce platforms create the environment to do this.

It is important to remember that e-commerce sites and the Sharing Economy did not arise from government policy.

Its growth has been organic and driven by independent free markets, innovation and creativity. This self-driven evolution underscores the importance of investing in these ecosystems to sustain their momentum and empower MSMEs.

To encourage further growth and innovation, a 

regulation-lite

 approach focusing on health, safety and consumer protection is essential, alongside strengthening existing regulations.

MDEC is actively leading efforts to establish transparent standards for users.

All stakeholders including the government, e-commerce platforms, industry leaders, logistics providers and customers, must work together to create a supportive environment that enhances the buyer experience and builds trust and transparency.

As Malaysians look forward to celebrating Merdeka, they should also support independent local entrepreneurs and businesses in the e-commerce space.

The collective impact of consumer support on the local economy will be the foundation for economic success for everyone.

By championing these independent ventures, Malaysians can contribute to a robust and resilient economy that reflects the spirit of innovation and entrepreneurship. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.