Bridging e- Commerce into Southeast Asia. To grasp the advantages of AEC by entering into Southeast Asia market via Malaysia as a gateway
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1 Bridging e- Commerce into Southeast Asia To grasp the advantages of AEC by entering into Southeast Asia market via Malaysia as a gateway
2 ecommerce Landscape in Southeast Asia
3 Internet Penetration Internet Penetration in Singapore, Malaysia, Vietnam is growing faster than the world s average Source :
4 Fast Growing Mobile Penetration 109% Mobile Penetration, while mobile and desktop usage are rapidly converging rapidly Source : ardent capital
5 Internet users in the region Internet users in S.E. Asia will grow from 120m to 205m in 2 years time, and estimated 360m in 2020 Source :
6 Vibrant Online Population Relatively young online population, where 70% are below 35 years old. who spends substantial time online Source : ecommercemilo.com, comscore
7 Market Potential 48% of Southeast Asia will be online by 2017, a rise in of online shopping volume from the current 0.2% of all retail sales to 5% would create a market worth $21.8 billion. $21.8 b $2.5 b Source:
8 ASEAN Economic Community In 2015, Southeast Asia will become an integrated market through AEC, becoming very conducive and cohesive market for regional trade Under AEC, there will: Free flow Goods Free flow Services Free flow of Skilled Labour Free flow of Investments Free flow of Capital Further Enhance the growth of ecommerce in this region
9 Malaysia Gateway to South East Asia
10 About Malaysia Capital Population Language Land area Internet Users Digital Buyers : Kuala Lumpur : 30 Million : Malay, English, Mandarin, Tamil : 329,750 sqkm : 20 Million : 16 million Malaysia offers a unique combination of best people, competitive cost of doing business together with world class business environment. GDP Per Capita : USD 25, (42 nd ) Ave. *WC Wages : 550 USD 1,000 USD *White Collar Strategic Location At the heart of the emerging markets Within a lowest cost region Tropical Climate and free from natural disaster Well connected airports and seaport Solid Infrastructure Growing broadband capacity Reliable and abundant power supply World class physical infrastructure Best highway network in Asia Government Support Pro-business policy Liberal investment policies Intellectual property protection
11 From Malaysia Leverage into Asean Market Situational Analysis: The UBS report has indicated that Asean s budding online shopping market is now worth between US$548 million (RM1.75 billion) and US$1 billion or around per cent of the total retail sales. These figures are expected to rise by five per cent, making the future markets gross at US$21.8 billion in 2020 THEREFORE, there is a Huge Opportunity to grow and expand ecommerce in ASEAN
12 Setting Up Company in Malaysia 1 Private Limited (Sdn. Bhd.) 2 Minimum 2 Directors & Shareholders 3 Minimum RM 500,000 paid up capital (depend nature of business) - Min aged of 18 and above - Non-bankruptcy - Not convicted and imprisoned 4 Can be 100% foreigner own days incorporation of Malaysian Company
13 Malaysian Government Industry SERVICES PROVIDED BY MDeC PROMOTION NURTURING & DEVELOPMENT FACILITATION Immigration, Foreign Kws, Business Advisory etc Financial assistance Training grants Human capital development K-Workers Development Initiatives MARKET ACCESS ASEAN, APEC & OIC Capability improvement Global Good Practices & Process Improvements Client management Day-to-Day Portfolio Management: Portfolio Driven Programs
14 3 industry clusters INFORMATION TECHNOLOGY CLUSTER (INFOTECH) Companies undertaking study, design, development, implementation, technical services or support, marketing and management of any computing based information systems, of any platform or technology brand SHARED SERVICES & OUTSOURCING CLUSTER (SSO) Common services including (but not limited to) IT, Finance, HR, Engineering Design provided by a single company leveraging on economies of scale and/or a provision of service from Malaysia that is geographically removed from their client(s) CREATIVE MULTIMEDIA CLUSTER (CMC) Companies specializing in the design of multimedia content that comprises with the integrated collections of computer based media including (but not limited to) text, graphics, sound, animation, photo images and video 5 New Focus Areas ecommerce BDA Cloud & Data Centre Internet of Things (IoT) Security 6
15 Revenue streams for ecommerce activities The following are revenue streams that have been approved by the MSC AC: Advertising Fees Administrative Fees Commission Fees (Cap imposed) Subscription Fees Transaction fees Licensing of the web solution, payment engine or an applicable solution Maintenance and support fees of the e-commerce activities
16 Incentives for growth 10 bill of guarantees The Bill of Guarantees reflects the Government's intention to provide an environment that is conducive to the development of MSC Malaysia Status entities. Knowledge Workers Unrestricted employment of foreign knowledge workers Infrastructure Provide world-class physical infrastructure One-Stop Agency MDeC as the one-stop agency Infra. Tenders Tender MSC infrastructure contracts Ownership Freedom of ownership Capital & Borrowings Freedom to source for borrowings and capital globally Financial Incentives No corporate income tax up to 10 years or investment tax allowance up to 5 years No duties on the importation of multimedia equipment Telco Tariff Globally competitive telecommunication tariffs Censorship No internet censorship IP Protection Intellectual property protection and cyber laws
17 Enabling environment to nurture ICT industries Selangor Cyberjaya Technology Park Malaysia UPM-MTDC Menara OBYU Petaling Jaya Symphony House Quill 9 Jaya 33 Bandar Utama Persoft Tower Menara UOA D sara Shah Alam i-city Menara Worldwide Puchong Puchong Financial & Corporate Centre (PFCC) Kuala Lumpur TM Cybercentre Complex Bangsar South City Mid Valley City KL Sentral Kuala Lumpur City Centre KL Tower Menara Binjai Wisma Hamzah Kwong Hing GTower The Intermark Menara Maybank Kedah Kulim Hi-Tech Park Penang Penang Cybercity 1 Spansion Perak Meru Raya Pahang Putra Square Johor Menara MSC Cyberport Utility: Telco: Security & time by Safety Brigade. Electricity: Redundant power supply. Water: WHO quality compliance. 99.9% service availability. Multiple Telco environment. Direct line exchange. High Speed Internet minutes maximum response time Police, Ambulance and Fire Cybercities / Cybercentres 20
18 Top Ecommerce Companies in Malaysia
19 Supporting Activities and Projects Outbound Trade Missions etrade Project
20 20
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