There’s a quiet but powerful shift happening across Southeast Asia—and Malaysia is right in the middle of it. Cross-border e-commerce is a real, growing opportunity for Malaysian and international brands ready to tap into new markets just beyond our shores.
If you’re an international business eyeing regional expansion, or a Malaysian SME curious about what it takes to go beyond domestic e-commerce, you’re in the right place.
Go from an unknown name or local favorite to regional player with the right strategy, support, and platform starting here.
Why Malaysia Is Poised for Cross-Border E-Commerce Growth
When it comes to regional logistics and digital trade, Malaysia punches above its weight.
Malaysia continues to gain ground as a strategic hub for international businesses in ASEAN. According to HSBC’s Global Connections survey, one in four international firms plan to expand into Malaysia within the next two years. Among those already operating in the country, 27% intend to prioritise further growth.
Geographically, it’s a strategic sweet spot—right in the heart of Southeast Asia with excellent access to major regional markets like Singapore, Indonesia, Thailand, and Vietnam.
But it’s not just about location. Other factors also play a big part:
- KLIA and Port Klang provide strong logistics support for exporters, a strength in the country’s potential for supply chain connectivity rather than a consumer market.
- Consumers and businesses alike are increasingly mobile-first and digitally savvy, contributing to the growing digital economy.
- A business-friendly regulatory environment is backed by competitive tax policies and investment incentives.
These make Malaysia a launchpad for brands wanting to test and enter neighboring markets. With a supportive ecosystem, growing e-commerce talent, and scalable digital infrastructure, it’s no surprise that more Malaysian sellers are expanding outward.
The Platforms Enabling Cross-Border Growth in Malaysia
There’s no shortage of platforms offering Malaysian sellers access to regional markets. But two stand out: Shopee and Lazada.
Shopee International Platform (SIP)
This program allows Malaysian sellers to list products on Shopee’s platforms in Singapore, Thailand, Indonesia, the Philippines, and Vietnam—without needing separate accounts. It handles logistics, customer service, payment, and even translation.
It’s seamless, but not open to everyone. Sellers need to be invited or apply via Shopee’s selection process.
Lazada Global Shipping (LGS)
Lazada offers a similar solution via LGS, enabling sellers to ship to six SEA markets using Lazada’s logistics. The platform takes care of warehousing, delivery, and order tracking, making it an attractive option for sellers who don’t want the burden of cross-border logistics.
TikTok Shop – A Newcomer with Momentum
TikTok Shop has gained ground in Malaysia and is now enabling cross-border sales into Indonesia and Thailand. This is particularly effective for lifestyle, fashion, and beauty brands targeting younger audiences.
Entering Southeast Asian e-commerce markets is relatively straightforward for international sellers. To open a store on platforms like Lazada or Shopee, you typically only need a legally registered business in your home country and the ability to ship products to designated sorting hubs in China or Hong Kong. Once those basic requirements are in place, Red Dino can help connect you with the right platform representatives to streamline the onboarding and activation process.
Not a Cross Border Seller Yet? Want to Know More About Setting Up Your Online Presence in SEA?
How to Successfully Enter the Malaysian Market
For companies looking to build long-term operations and retain full control, direct entry is often the preferred route. This usually means setting up a Private Limited Company (Sdn Bhd) in Malaysia.
Sdn Bhd companies enjoy competitive tax rates—24% for resident companies and 17% for SMEs under certain thresholds. 100% foreign ownership is permitted in many sectors, especially under the liberalised services sector policies—though some industries still require local equity participation. Additionally, operating as a Malaysian entity can signal commitment and legitimacy to both customers and regulators.
However, setting up directly in Malaysia also comes with responsibilities. Foreign businesses must comply with registration requirements under the Companies Commission of Malaysia (SSM), appoint at least one resident director, and ensure adherence to local employment, tax, and corporate governance laws.
It’s worth noting that Malaysia’s digital infrastructure and multilingual workforce make it easier for international firms to integrate smoothly into the local business environment. For e-commerce brands especially, the ability to control fulfilment, customer service, and marketing directly can give a strong edge over third-party or distributor-led models.
If registering a local entity isn’t feasible, Red Dino also offers a proxy seller account service. In this setup, your store operates under a trusted local partner’s name, provided your inventory is stored within the country. This lets you start selling across SEA markets without having to go through the full local incorporation process—while we handle platform operations, coordination, and payment remittance on your behalf.
From Malaysian Setup to Regional Expansion
Step 1: Solidify Your Malaysian Base
After incorporating your entity (Sdn Bhd) and setting up the necessary financials statutory contributions, a local team can help you identify outsourcing partners. For e-commerce brands, this mainly comprises of logistics and customer service.
Establish your brand storefronts on Shopee and Lazada to gain traction and validate your product-market fit. In parallel, build your own branded direct-to-consumer website (Shopify, WooCommerce, or custom) to begin collecting first-party data and nurture long-term brand loyalty.
This phase also includes working on your branding, local partnerships, and developing an understanding of consumer preferences—vital groundwork for regional scalability.
Step 2: Activate Cross-Border Capabilities
Once your local operations are stable, the next move is to activate cross-border selling from Malaysia. Thanks to platforms like Shopee and Lazada, this can happen faster than you think:
- Register for Shopee/Lazada Cross Border Programs, which allow you to reach countries like Singapore, Indonesia, Thailand, and the Philippines from your Malaysian storefront
- Partner with logistics providers like J&T International, DHL eCommerce, Ninja Van for cost-effective regional shipping
- Localise your product listings, currencies, and support options to cater to customers in target ASEAN markets
You don’t need physical warehouses in other countries just yet. Instead, test the waters with cross-border fulfilment while collecting regional sales data, user behavior insights, and logistics performance metrics.
Step 3: Localise Strategically
When specific markets begin to show traction, it may be time to take the next step: localising operations. Depending on the country, this could mean:
- Setting up a fulfilment center or warehouse in Singapore or Jakarta
- Registering a local entity or partnering with a local distributor or JV partner
- Hiring on-ground teams for marketing, customer support, or sales
Each ASEAN market has its own consumer expectations, payment preferences, and regulatory quirks. Localisation isn’t about replicating your Malaysian model—it’s about adapting smartly based on actual data and local feedback.
To ensure sustainable growth, focus on consolidating regional logistics through a regional 3PL or integrated fulfilment partner. Automate operations across countries (inventory sync, customer support, CRM, etc.) and centralise strategy but localising execution—keep core functions in Malaysia, but empower local teams to execute in-market
Leveraging Malaysia’s free trade agreements and government incentives to minimise tax exposure and maximise reach. Brands that make it this far typically view Malaysia as their ASEAN command centre, with satellite teams or fulfilment points in 2–4 other countries.
Case Study: How GRUNDFOS Used Malaysia to Grow Its Regional Presence
When a global brand like GRUNDFOS—the world’s largest pump manufacturer based in Denmark—decides to enter Southeast Asia more aggressively, its choice of regional HQ isn’t accidental. With over 19,000 employees worldwide and a reputation built on engineering excellence, GRUNDFOS needed a strong and stable base from which to grow in the region. Malaysia offered that in spades.
But entry alone wasn’t enough.
The Challenge: Unauthorized Sellers and a Fragmented Brand Image
Despite its international reputation, GRUNDFOS faced surprisingly tough challenges in Malaysia. The company suffered from low brand exposure in the digital retail space. Worse, the lack of an official online presence gave rise to numerous unauthorized resellers, many of whom sold products without proper technical documentation or customer support.
This created a fragmented brand image, eroding trust and confusing potential customers. In a B2B-driven industry where reputation, reliability, and authenticity are everything, GRUNDFOS’ credibility took a hit.
The Solution: Centralized E-Commerce Strategy for Malaysia and Beyond
Red Dino is an e-commerce enabler that understands the regional terrain. The goal wasn’t just to clean up the brand’s local presence—it was to build a strong e-commerce foundation in Malaysia that could scale regionally.
Here’s what the strategy looked like:
- Shopee and Lazada store setup for GRUNDFOS and all 23 of their authorised sellers, with tight brand governance.
- Technical support and onboarding assistance to ensure consistent, compliant listings across both platforms.
- Creation of localized creative assets—from banner visuals to product descriptions—that preserved GRUNDFOS’ premium image.
A dedicated campaign to identify and report unauthorized sellers, restoring brand integrity.
The Results: Restored Credibility and a Clear Path to Regional Expansion
With a cohesive and controlled online presence, GRUNDFOS was able to rebuild trust in Malaysia’s digital market. The new setup ensured customers were buying authentic, supported products, with proper warranties and local assistance.
This not only protected GRUNDFOS’ brand reputation but also laid the groundwork for expansion into other Southeast Asian markets via platforms like Shopee and Lazada. In effect, Malaysia became their e-commerce beachhead—proving that when executed well, cross-border e-commerce is not just for SMEs, but also a strategic tool for multinational B2B brands navigating fragmented markets in Southeast Asia.
Your brand can expand in the region with effective cross-border e-commerce. Malaysian brands can scale beyond borders and tap into the vibrant, growing digital economies across Southeast Asia. International brands can use Malaysia as a gateway to the rest of Southeast Asia. Whether you’re a beauty brand eyeing Indonesia or a snack company targeting Singaporean expats, the opportunity is real—and within reach.
The tools are here. The market is ready. The question is: Are you?
Discover End-to-End Solutions with Red Dino Ventures
Interested in expanding into or within Southeast Asian markets? Easily manage platforms across different regions with Red Dino’s e-commerce expertise. Get in touch now for a customisable plan and pricing for your business!
Address: No.15-2 Jalan Equine 10D, Taman Equine, 43300 Seri Kembangan, Selangor
Email: support@reddinoventures.com
Phone: +603-5879 9269
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