Malaysia’s eTRADE 2.0 programme has helped micro, small and medium enterprises (MSMEs) generate RM438.7 million in actual export sales and enter 163 international markets, highlighting the growing role of cross-border e-commerce in driving Malaysia’s export growth.
Implemented by the Malaysia External Trade Development Corporation (MATRADE) throughout the Twelfth Malaysia Plan (12MP) from 2021 to 2025, the programme benefited more than 2,000 Malaysian MSMEs through grants, training, technical guidance and capacity-building support.
The initiative was designed to help local businesses leverage digital platforms to expand their operations and reach international markets.
Digital Trade Opens Doors to 163 Export Markets
The findings come from an eTRADE 2.0 Programme Impact Study conducted by UKM Pakarunding Sdn Bhd.
The study involved surveys of incentive recipients, stakeholder interviews and analysis of key performance indicators, including export sales performance, entry into new markets, adoption of cross-border e-commerce platforms and companies’ levels of digital readiness.
One of the programme’s most notable achievements was helping recipient companies enter 163 export markets, including less commonly explored destinations such as Réunion Island, Kiribati and Nauru.
ASEAN remained a key export destination, with approximately 30% of recipient companies strengthening their presence in the region.
Malaysian Food, Pharmaceutical and Household Products Perform Well
The programme also helped Malaysian businesses expand the range of products available through international e-commerce platforms.
Among the best-performing product categories were ready-to-eat food, beverages, pharmaceutical and cosmetic products, household goods and plastic products.
The impact study found that at least 852 new products were listed on international e-commerce platforms, further expanding the presence of Malaysian products in global markets.
The results demonstrate how cross-border e-commerce can provide Malaysian MSMEs with additional channels to showcase and sell their products internationally.
eTRADE 2.0 Creates 661 Jobs
Beyond export sales and market access, the programme also generated socioeconomic benefits.
At least 661 employment opportunities were created among participating companies, highlighting the potential of export-oriented digital businesses to contribute to job creation.
The programme also reached a diverse range of Malaysian entrepreneurs. Bumiputera-owned companies accounted for 48% of recipients, while women-owned companies represented 33% and youth-owned companies accounted for 9%.
The figures reflect the programme’s reach across different segments of Malaysia’s entrepreneurial community.
Alibaba.com Leads Export Sales Among Participating Companies
Alibaba.com was the cross-border e-commerce platform that recorded the highest export sales value among incentive recipients.
According to MATRADE Chief Executive Officer Dato’ Indera Abu Bakar Yusof, the achievements of eTRADE 2.0 demonstrate how digital approaches can help MSMEs overcome some of the traditional challenges associated with international trade.
“Through this programme, MSME companies have demonstrated resilience, adaptability and encouraging performance, particularly in terms of export growth, job creation and expanding their reach into international markets,” he said.
He added that the results demonstrate that digital platforms can serve as more than marketing channels, functioning instead as gateways to new export markets for Malaysian companies, particularly MSMEs facing resource, cost and international market access constraints.
Digital Platforms Strengthen SME Export Competitiveness
According to Dato’ Indera Abu Bakar Yusof, eTRADE 2.0 has demonstrated that a digital-led approach can strengthen the competitiveness of Malaysian MSMEs, encourage job creation and support a stronger domestic supply chain.
“The results achieved will continue to serve as a guide in MATRADE’s ongoing efforts to empower Malaysian MSMEs on the global digital economic stage,” he said.
The impact study also provides MATRADE with strategic insights into the effectiveness of eTRADE 2.0 and will support the development of more targeted, inclusive and sustainable digital export development initiatives.
MATRADE to Continue Expanding Cross-Border E-Commerce
Following the success of eTRADE 2.0, MATRADE will continue strengthening Malaysia’s cross-border e-commerce ecosystem through the eBizLink 2.0 Programme.
The programme will focus on expanding international market access, increasing MSME capacity, developing the digital trade ecosystem and establishing strategic partnerships with global e-commerce platforms.
The move is part of MATRADE’s broader efforts to ensure more Malaysian companies, particularly MSMEs, are equipped to leverage digital technology as a strategy for export expansion.
By strengthening digital trade capabilities and access to international e-commerce platforms, MATRADE aims to increase the global presence of Malaysian products and services while helping more local businesses compete in the international marketplace.
