Impact of E-Commerce to Malaysian Economy - 854 Words

IMPACT OF E-COMMERCE ON THE MALAYSIAN ECONOMY E-commerce is the new buzz word. With the advent of the Internet, the development of e-commerce in both the developed and developing economies has developed at a rapid pace. Developing countries such as Malaysia are catching up fast as there are already 1.2 million Internet users. The private sector and the Government have taken initiatives to implement e-commerce. Physical and legal infrastructure for e-commerce in Malaysia have been put in place. The rapid adoption of e-commerce in the developing economies in general and Malaysia in particular has been made possible by the rapid development and high investment in communication technology and infrastructure, cheaper cost of computers and†¦show more content†¦Reduced transaction costs benefit both consumer and producer. While consumers will gain access to a broad-based selection of lower priced goods, producers are likely to see higher demand for their products.Furthermore, in th e Internet age, people and firms will be connected with highly capable interactive capacity. Through the information highway, consumers will have free market choices, and firms will have almost unrestricted market access. This offers opportunities as well as poses threats to businesses. The impact of e-commerce can be traced at the industry and consumer levels. It can also be traced at the macroeconomy level. It is however important to note that the full impact of e-commerce on an economy depends on several factors such as the rate at which the economy adopts e-commerce.At the industry level, e-commerce will result in some rationalization of activities. Firms will need to undertake investment in an appropriate computer system to implement e-commerce. They will undertake new activities which are knowledge-intensive. Through the adoption of e-commerce, firms will demand for a new kind of workforce, particularly those with a higher level of computer literacy. This new demand will have an immediate and far-reaching implication on the provision of training in the country. Firms will be pre-occupied with technology selection and investment. This task is quiteShow MoreRelatedMarket Pressure1912 Words   |  8 Pagesfrom global economy and strong competition, the changing nature of the workforce and powerful customer’ (Turban, E. et al 2007, pg 33). I. Global economy and strong competition (a) Global economy ‘refers to an integrated world economy with unrestricted and free movement of goods, services, and labour transnationally’ (Economywatch, 2011). 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Ali, PhD Department of Communication, Faculty of Modern Languages Communication, University Putra Malaysia, Malaysia Siti Zobidah Omar, PhD Department of Communication, Faculty of Modern Languages Communication, UniversityRead MoreManagement4821 Words   |  20 PagesJune 2009, Volume 2, pp. 128-137 Entry Mode Strategies of Malaysian Service Firms: A Resource-Based Approach Mohammadreza Asgari*, Mohd Nazari Ismail**, Syed Zamberi Ahmad*** Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur ABSTRACT The rapid progress in services has attracted scholars to study the behaviour and decisions of service firms. 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Malaysia Airlines started its operation on 1987 after the airline changed its name from Malaysian Airline System. It is founded in 1947 by Malayan Airways. Then, it transformed to Malaysian Airways due to Malaysia gaining its independence. After that, it changes its name once more to Malaysia-Singapore Airlines and thereafter ceased its operation. It was then divided into Malaysia AirlinesRead MoreWhy Should Shop Online? Essay2117 Words   |  9 Pagesonline are most likely to buy books, cosmetics, clothing/accessories/shoes and groceries via the Internet in the next six months. While connected Chinese also favor books and clothes, 40 percent plan to make an electronic purchase online. Web-savvy Malaysians like online shopping for booking travel, with airline tickets and hotel/tour reservations the top picks. More online Australians intend to purchase event tickets and non-downloadable videos/DVDs/games than any other in the region. 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