13 July 2010 | By: Mohamed Hairul Borhan

Malaysia's electronic-commerce (e-commerce) industry is expected to grow by 32 per cent this year to US$29.24 billion (S$40.46 billion*), up from US$22.15 billion in 2009, said Wei Chuan Beng, chairman of the National ICT Association of Malaysia (Pikom).

The double-digit growth is expected to continue over the next three to five years, with Mr Wei estimating that the sector will expand by between 20 and 30 per cent annually during the period.

The growth would be driven by the readiness of infrastructure, availability of online services, broadband maturity and a strong awareness of e-commerce, he added.

Mr Wei was speaking to reporters after the launch of the National ICT Month 2010 (NIM 2010), themed "e-Commerce for Global Reach", by Malaysia’s Minister of Science, Technology and Innovation, Datuk Seri Maximus Ongkili.

He said that lowering the cost of e-payments charged by financial institutions, which are currently higher than the manual payment, would boost the e-commerce activity in the country further.

Earlier, Mr Ongkili said the 10th Malaysia Plan has identified the information and communication technology (ICT) sector as one of the 12 National Key Economic Areas and its contribution to economy was expected to increase to 10.2 per cent by 2015.

"Thus, we envisage the ICT to be massively deployed to bring about productivity enhancements, service level improvements and innovation throughout businesses, government and consumers alike," he said.

*Exchange rate correct as at 13 July 2010