The Factors and Challenges affecting Digital Economy in Malaysia

Yin Xia Loh (Universiti Tun Hussein Onn Malaysia)
Nor Aziati Abdul Hamid (Universiti Tun Hussein Onn Malaysia)
Choon Sen Seah (Universiti Tunku Abdul Rahman)
Jia Jie Yo (Universiti Tunku Abdul Rahman)
Yu Chung Law (Universiti Tunku Abdul Rahman)
Sze Yin Tan (Universiti Tunku Abdul Rahman)
Hui Loo Chung (Universiti Tunku Abdul Rahman)
Yung Leong Liew (Universiti Tunku Abdul Rahman)
Ching Chong (Universiti Tunku Abdul Rahman)

Conference on Management, Business, Innovation, Education and Social Sciences (CoMBInES)
Vol 1 No 1 (2021): Conference on Management, Business, Innovation, Education and Social Sciences (Co

Malaysia is one of the most avid countries in online shopping just behind Indonesia, the largest e-commerce market in ASEAN. In 2020, the Malaysia Digital Economy Corporation’s (MDEC) expectation to hit 20 per cent growth in e-commerce contribution to the digital economy can be achieved as the COVID-19 pandemic has given a huge boost to digital adoption among entrepreneurs. However, many SMEs do not move fast enough to recognize the changing habits and preferences of their consumers. As a result, they do not evolve their business model to adapt to the changes. The purpose of this paper is to conceptually identify and explain the factors and challenges that affecting digital economy in Malaysia.