Malaysia Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q2 2025 Update

Key Insights

Integration of Shopping Features in Social Media Platforms

• Social media platforms in Malaysia increasingly incorporate shopping features, enabling consumers to make purchases without leaving the app. TikTok Shop, for instance, has gained widespread traction, offering users an integrated browsing and buying experience. This trend allows businesses to reach consumers directly within their social networks, reducing the steps required for conversion.
• The primary drivers of this trend include the high penetration of smartphones and the widespread use of social media in Malaysia. Consumers value the convenience of in-app shopping, while businesses benefit from the ability to target potential buyers through personalized ads and algorithm-driven recommendations. As a result, brands are investing more in social commerce strategies to engage users effectively.
• Over the next two to four years, social commerce adoption is expected to intensify, with platforms introducing more advanced features such as AI-driven recommendations and seamless payment integrations. As consumer behavior shifts toward mobile-first transactions, businesses that effectively leverage social media shopping tools will gain a competitive advantage. However, increased reliance on these platforms may also lead to growing scrutiny regarding data privacy and business platform fees.

Rise of Influencer-Led Shopping

• Influencer-led shopping is becoming a key driver of social commerce in Malaysia, with influencers leveraging their platforms to directly promote and sell products to their followers. This trend capitalizes on the trust and engagement influencers have built with their audiences, making their recommendations more impactful than traditional advertising. As a result, brands are increasingly collaborating with influencers to create authentic and personalized marketing campaigns.
• The effectiveness of influencer marketing in driving sales is a major factor behind this shift. Consumers often view influencer endorsements as more genuine, particularly when influencers showcase products through live streams, unboxing videos, or personal testimonials. This promotion method enhances brand visibility and facilitates immediate purchase decisions through embedded shopping links and direct product tags.
• Influencer-led shopping is expected to expand further over the next two to four years, playing an integral role in brand marketing strategies. However, regulatory bodies may impose stricter guidelines on disclosure, taxation, and advertising standards for influencers. Businesses and influencers will need to navigate these evolving regulations while optimizing their marketing strategies to maintain consumer trust and compliance.

Growth of Live Shopping Events

• Live shopping events are becoming increasingly popular in Malaysia as retailers use live broadcasts to showcase and sell products in real-time. This format enables businesses to interact directly with consumers, answer questions instantly, and demonstrate products in ways that static images or traditional e-commerce listings cannot. Platforms such as TikTok Shop and Shopee Live capitalize on this trend by integrating live shopping features that allow seamless transactions during broadcasts.
• The primary driver of this trend is the demand for real-time interaction and product demonstrations, which create a more engaging shopping experience. Consumers value the authenticity of live presentations, as they can see product quality, usage, and benefits firsthand. Additionally, limited-time promotions and exclusive discounts during live sessions encourage impulse purchases, further driving sales through this channel.
• Over the next two to four years, live shopping will become a key component of Malaysia’s social commerce landscape. More brands will likely host regular live events to boost engagement and sales, integrating interactive features such as live polls, Q&A sessions, and influencer-hosted broadcasts. As competition intensifies, businesses that refine their live shopping strategies and invest in high-quality, engaging content will have an advantage in attracting and retaining customers.

Emphasis on Ethical and Sustainable Shopping

• Ethical and sustainable shopping is becoming more prominent in Malaysia as consumers increasingly prioritize products that align with their values. Social commerce platforms adapt to this shift by promoting environmentally friendly goods and supporting local businesses emphasizing sustainability. This trend is particularly visible in sectors such as fashion, beauty, and food, where transparency in sourcing and production is becoming a key consideration for buyers.
• The rise in environmental awareness and a preference for locally produced goods are major drivers behind this shift. Consumers are becoming more conscious of the impact of their purchases and are actively seeking brands that practice ethical sourcing, reduce waste, and use eco-friendly materials. Social commerce platforms are responding by offering dedicated sections for sustainable products and leveraging influencer marketing to highlight eco-conscious brands.
• Over the next two to four years, businesses prioritizing ethical and sustainable practices are expected to gain a competitive edge as consumer demand for responsible products grows. Companies that fail to adapt may face reputational challenges as transparency and sustainability become standard expectations in the retail sector. As this trend evolves, social commerce platforms may refine their offerings by incorporating certifications, consumer reviews, and product traceability features to reinforce trust and authenticity.

Competitive Landscape and Regulatory Developments in Malaysia's Social Commerce Market

Current State of the Social Commerce Market

• This expansion is driven by integrating shopping features within social media platforms, enabling users to purchase without leaving the app. A 2023 survey indicated that approximately 37% of Malaysian respondents regularly shop on social media, reflecting increased consumer confidence in online shopping.
• The widespread adoption of smartphones and high social media engagement among Malaysians are primary drivers of this trend. Consumers appreciate the convenience of in-app purchases, while businesses benefit from direct access to a large user base. This dynamic has led to a vibrant social commerce ecosystem, with established players and new entrants vying for market share.

Key Players and New Entrants

• The Malaysian social commerce landscape is dominated by major platforms such as Facebook, Instagram, YouTube, PG Mall, and TikTok Seller. These platforms have integrated shopping features to cater to the local market, enabling businesses to showcase and sell products directly to users.
• In addition to these established players, local companies are increasingly entering social commerce, utilizing these platforms to reach a broader audience and compete effectively in the digital marketplace. This influx of new entrants intensifies competition and drives innovation within the sector.

Recent Launches, Mergers, and Acquisitions

• The Malaysian social commerce landscape has witnessed significant mergers and acquisitions in recent years, reflecting a trend toward consolidation and strategic partnerships. For instance, global companies have invested in e-commerce platforms to strengthen their direct-to-consumer channels.
• This activity underscores the dynamic nature of the market as firms seek to enhance their digital capabilities and market reach. Such strategic moves are expected to reshape the competitive landscape, leading to more integrated and comprehensive social commerce offerings.

Outlook

• Looking ahead, Malaysia's competitive landscape of social commerce is expected to evolve with technological advancements and consumer preferences. Brands that prioritize personalized shopping experiences, leverage influencer partnerships, and adopt emerging technologies such as augmented reality will likely gain a competitive edge.
• However, businesses must also navigate the regulatory environment, which has seen recent changes to enhance consumer protection and data privacy. Staying abreast of these developments will be crucial for companies operating in Malaysia's social commerce sector. The market is poised for continued growth, with increased competition driving innovation and improved consumer experiences.

Regulatory Changes

• Over the past year, Malaysia has introduced regulatory changes to enhance consumer protection and data privacy within the digital marketplace. The Malaysian Communications and Multimedia Commission (MCMC) announced a new licensing regime for social media and internet messaging services, effective 1 August 2024, with enforcement starting on 1 January 2025. Platforms with at least 8 million users are required to apply for an applications service provider class license.
• Additionally, the existing laws relating to e-commerce are undergoing review, with completion expected by mid-2025. This review aims to introduce a more comprehensive legal framework suited to current demands and technological developments, providing better consumer protection and encouraging greater use of e-commerce platforms.

Scope

Malaysia Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030

Malaysia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030

Malaysia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2021-2030

• Clothing & Footwear
• Beauty and Personal Care
• Food & Grocery
• Appliances and Electronics
• Home Improvement
• Travel
• Hospitality

Malaysia Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2021-2030

• B2B
• B2C
• C2C

Malaysia Social Commerce Industry Market Size and Forecast by End Use Device, 2021-2030

• Mobile
• Desktop

Malaysia Social Commerce Industry Market Size and Forecast by Location, 2021-2030

• Domestic
• Cross Border

Malaysia Social Commerce Industry Market Size and Forecast by Location, 2021-2030

• Tier-1 Cities
• Tier-2 Cities
• Tier-3 Cities

Malaysia Social Commerce Industry Market Size and Forecast by Payment Method, 2021-2030

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Other Digital Payment
• Cash

Malaysia Social Commerce Industry Market Size and Forecast by Platforms

• Video Commerce
• Social Network-Led Commerce
• Social Reselling
• Group Buying
• Product Review Platforms

Malaysia Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2024

• By Age
• By Income Level
• By Gender

Malaysia Social Commerce Market Share by Key Players, 2024

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