Go into e-commerce, SMEs urged

Source From (The Sun Daily): http://www.thesundaily.my/news/415997

Published: on 26 Jun 2012

KUALA LUMPUR (June 25, 2012): SME Corp Malaysia has urged small and medium enterprises (SMEs) to venture into e-commerce, saying the electronic market place has greater outreach and affluence than traditional markets.

CEO Datuk Hafsah Hashim said the e-marketplace has enabled firms to reach out to more potential customers, resulting in an increase in the number of competitors, in addition to the breaking down of geographical barriers.

"One of the advantages of e-commerce is that smaller companies are able to compete with larger firms in terms of quality and accessibility," she said at the signing of an agreement between Multimedia Prospect Sdn Bhd, a wholly-owned subsidiary of ManagePay System Bhd, and Bpost International here today.

The agreement aims to accelerate adoption of e-commerce in Malaysia with the International Trade Lane service.

Hafsah said a recent Google-commissioned study revealed that the Internet contributed 4.1% of gross domestic product in Malaysia, higher than in the US (3.8%) and China (2.6%).

"However, the study also found that Internet accessibility is still relatively low for Malaysian SMEs due to high bandwidth and domain registration costs," she added.

A study by MDeC also revealed that SMEs' adoption of online payment is still at an early stage, she said.

"Only 11% of the respondents used online payment facilities, with online banking being the most popular option, followed by credit card payment," she said adding the high costs and lack of facilities and skills were the main

perceived barriers for SMEs to conduct business online.

Meanwhile, ManagePay CEO Chew Chee Seng said the agreement paves the way for ManagePay to leverage on the expertise and infrastructure of Bpost International to deliver cross-border parcels from e-retailers in Malaysia to destinations in Europe on time, intact and cost efficiently.

"In particular, Bpost International will offer its Globify international trade lane service whereby consumers who purchase goods on the websites of e-retailers will know exactly the total landed cost at the time of purchase," he added.

Chew said this partnership can also benefit Malaysian e-retailers by making it so much easier and more stress-free to sell their products online. – Bernama