eCommerce Tracker: How PIKOM’s new Asean alliance will tap Malaysia’s 'incredible growth'

Malaysia's National ICT Association forms a new chapter and strategy to tap Malaysia's fast growing eCommerce sector, now one of the largest in ASEAN.

By AvantiKumar
Jan. 16, 2017

ecommerce (IDG Now)

Image (IDG Now) - eCommerce


To further mobilise Malaysia's fast growing eCommerce sector, now one of the largest in ASEAN, Malaysia's National ICT Association, PIKOM, has formed a new chapter to tap ASOCIO's regional network.

Speaking to media in Kuala Lumpur, PIKOM chairman Chin Chee Seong said PIKOM's new chapter, named eCommerce Malaysia, will complement and leverage the newly launched ASOCIO eCommerce Alliance platform to grow cross border trade.

"The new chapter is a timely initiative as eCommerce in Malaysia is at the cusp of incredible growth," said Chin, who cited AT Kearney's 2014 report - 'Lifting the barriers to eCommerce in Asean' - that the online retail market in Asean was worth US$7 billion with Singapore accounting for about 25 per cent of all online sales in the region at US$1.7 billion, followed by Malaysia and Indonesia each at about US$1.3billion.    
PIKOM will be the voice of the eCommerce industry in Malaysia through the new chapter, said Chin. Its objectives will include promoting the Malaysian eCommerce players through regional and global initiatives. The chapter will also be the point of contact with the government on eCommerce-related matters and play a role in increasing the awareness on the ease of online shopping.
"With the advent of ASEAN Economic Community (AEC) in 2015 and the move towards a single market, it is ripe to take advantage of this huge market of more than 630 million consumers," said Chin. 

National roadmap
He said the new chapter will work closely with the National eCommerce Council (NECC) and the national ICT agency Malaysia Digital Economy Corporation (MDEC). "The initiatives and programmes of the chapter will be aligned closely with the pillars of the National eCommerce Roadmap."
Membership of this chapter will include eCommerce merchants, marketplaces, payment providers, logistics and fulfilment players, said Chin. The members will drive   activities for the chapter with PIKOM providing governance and secretariat support. The chapter will be headed by PIKOM deputy chairman Ganesh Kumar Bangah, who has extensive experience in the area of eCommerce.
In addition, industry veteran and a former PIKOM chairman, David Wong Nan Fay as the new ASOCIO chairman, effective from January this year. 
Wong was PIKOM chairman for the council years of 2008 and 2009 and is currently an Advisor of PIKOM.  He is also the Co-founder and Emeritus Chairman of Outsourcing Malaysia (OM), an initiative of PIKOM and a consortium representative of the outsourcing industry.
"PIKOM as a member of ASOCIO will also position the chapter to support the regional initiatives of the organisation, especially ones related to eCommerce," he said, adding that this move will benefit PIKOM's members.
The alliance is an important platform to promote and encourage cross border activities, said Wong.

Issues and challenges
"ASOCIO will work closely together with the industries and governments of the member countries to address issues and challenges faced by the market players," he added.

In his presentation, Wong pointed to some of the challenges faced by SMEs during the "On boarding, eCommerce Transaction and Order Fulfilment" process. These include issues in setting up a legal entity across multiple markets through to understanding different cultures across the region.

To tackle these, will require working closely with government and AEC secretariat on various incentives/ legal & tax framework/ infrastructure necessary to facilitate eCommerce growth in the region, he said.

"We are pleased to announce that with the initial support, the following E-Commerce players from five countries have agreed to be part of the alliance:
1. Lelong, Malaysia
2. Gemfive, Malaysia
3. Logon, Malaysia
4. Tarad, Thailand
5. Matahari Mall, Indonesia
6. Clozette, Singapore
7. Shopback, Singapore
8. SiteGiant, Malaysia
9. Web2Ship, Malaysia
10. Ipay88, Malaysia
11. Buzzebees, Thailand
12. Peacesoft, Vietnam
13. ManagePay, Malaysia
14., Hong Kong
15. Fashion Valet, Malaysia
 The Asian-Oceanian Computing Industry Organization (ASOCIO) is a grouping of IT industry associations representing economies in the Asia and Oceania regions. Presently, ASOCIO represents the interests of 31 economies, comprising 24 members from Australia, Bangladesh, Bhutan, Brunei, Cambodia, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Macao, Malaysia, Mongolia, Myanmar, Nepal, New Zealand, Pakistan, Philippines, Singapore, Korea, Sri Lanka, Thailand, Vietnam and seven guest members from USA, UK, Canada, Spain, Russia, France, and Kenya.

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