Malaysia digital trade expected to grow ten-fold

In recent years, Malaysia has witnessed an exponential growth in creating a digital economy as more than 60,000 online businesses have registered with the various government agencies. The digital economy now accounted for 18.2% of the country's GDP in 2016 and the number have increased significantly in recent years, according to estimates by international Trade and Industry Ministry. 

The country has smartly developed an ambitious agenda to fully take the benefits of available digital technologies for the nation by giving grants and industry-research matching schemes to organizations. Here, digital trade plays a key role in achieving the vision and online trade platforms like TradeMalaysia.com are going to play a huge role in it. 

Digital trade was supporting up to US$5.6 billion of economic benefits in Malaysia in year 2017 through leveraging from digital technologies that boosts worker productivity, lesser costs and create a whole new source of revenue, according to a report released by the Henrico Foundation, titled "The Data Revolution: How Malaysia Can Capture The Digital Trade Opportunity At Home And Abroad". This numbers have also grown significantly in recent years. 

However, this represents only 1.8 percent of the country's GDP, which is somewhat lower than other Asia Pacific economies like Australia, whose equivalent share of GDP is almost 3 percent. The relatively low penetration rates of these digital technologies shows a large potential for much larger impact in the future. As per estimated by 2030, this could grow more than ten-fold, crossing US$75.6 billion, the report said.

The report also discovers that the export value of virtual goods and services enabled by the digital economy, like e-commerce, accounted for around US$7 billion in exports in 2017, making it Malaysia's 6th largest export sector and accounting for 3.3 percent of its total export value. These numbers have already increased significantly by 2020 and in 2021 its going to get doubled as per experts. With a good digital policy, it is estimated that by 2030, Malaysia's digital exports could grow by a huge 358 percent from today's levels to reach US$38.5 billion. Here also B2B Directory Platforms like TradeMalaysia are going to play major role. 

Digital trade platforms covers the production, distribution, marketing, sale or delivery of goods and services – national and international –  fully supported by cross-border data flows. At TradeMalaysia, we always ensure that Malaysia Business directory get international exposure to global buyers and increase their sales numbers.  

Are you a Manufacturer or Supplier or Service Provider? Join TradeMalaysia now: www.trademalaysia.com and leverage the benefits of digital technology which can help you to boost your sales and exports numbers.