[PRESS RELEASE] - E-commerce Landscape in 2025

The findings from the study reveal:

• E-commerce shoppers surge by 16%, with nearly two-thirds of Malaysians now buying online
• E-commerce growth spans all ages with individuals aged 25-34 leading the charge
• Growth in E-commerce is driven primarily by increased purchases of fashion and home care products
• TikTok’s steady climb challenges Shopee’s long-time lead
• E-commerce's maturity drives Malaysians to prioritize value over product quality
• TikTok Shop is catching up with Shopee’s position through trusted reviews
   

Kuan Sawu Fang, Senior Client Officer, Ipsos Malaysia mentions:  

“Driven by the widespread expansion of internet access worldwide, online shopping has been experiencing a surge, with global retail E-commerce sales projected to exceed 4.3 trillion U.S. dollars by 2025, continuing its upward trend. This growth highlights the fundamental shift in shopping behaviors facilitated by improved digital connectivity. In Malaysia, e-commerce and ICT activities contributed RM451.3 billion, or 23.4% of GDP in 2024, underscoring the sector’s growing importance to the national economy.

In Malaysia, the E-commerce landscape is marked by consistent growth across all age demographics, signifying a broadening user base beyond the traditional younger audience. Growth is most pronounced among 25–35-year-olds, but there’s also a steady increase among those 45 and above. Key contributors to this growth include the fashion and home care categories, which are recording substantial consumer interest, despite some categories experiencing declines as as consumers return to physical stores for higher-value or more experiential purchases.

While Shopee remains as the market leader, TikTok Shop is emerging as a formidable competitor by enhancing its value proposition, especially through reliable product reviews. Now, Malaysian e-commerce shoppers prioritize promotions and values, as consumers trust the product quality. Government initiatives continue to reinforce E-commerce as a key driver of Malaysia’s economic development.”