Hoseok Kim (picture), CEO of 11street (Malaysia) comments on Malaysia Budget 2016.
11street, one of the largest online marketplaces in Malaysia welcomes the tabling of Budget 2016. We believe that 5 priorities presented by the government will help Malaysia move closer towards a high-income nation.
We are pleased with the initiatives listed for SME development within Budget 2016. For example, allocations for Entrepreneurs Acceleration Scheme, SME Capacity and Capability Enhancement Scheme, SME Technology Transformation Fund and SME Blueprint, will positively facilitate SMEs to improve their business value and serve to invigorate them to continue playing a key role of contributing 41% of GDP by 2020.
In addition, enabling SMEs signals to the progressive growth within the e-commerce landscape in the country. This is especially true when SMEs are able to sustain their business in the future economic environment and further venture into the online market. These initiatives are aligned with 11street’s commitment of empowering SMEs to thrive in an online business and in turn, grow the local e-commerce landscape.
Support by the Malaysian Communications and Multimedia Commission (MCMC) of allocating RM1.2 billion to offer High-Speed Broadband to rural areas will assist to amplify the growth of mobile shopping and ‘mobile-first’. As this is quickly becoming an emerging driver for e-commerce, having seamless and fast Internet connectivity will allow more Malaysians to use their mobile devices to head online and shop.
Initiatives to improve logistics infrastructures within the country through an improved rail transport network and highways by 2016 will also be a boom to the e-commerce industry as faster and more effective delivery services can be enjoyed by sellers and consumers.
These allocations are certainly a step in the right direction to positively enhance, support and grow the Malaysian e-commerce market. The advancement of e-commerce in Malaysia will undoubtedly benefit market players, sellers and consumer alike. This will also further bolster the industry which is growing rapidly in the country at 30% CAGR. Likewise, this will build upon Malaysia’s vibrancy as a profitable market for e-commerce.