Malaysian consumers have trust issues

IT’S about trust. The lack of it, actually.

Malaysians prefer traditional norms. We view societal changes with suspicion, Multimedia University’s Prof Hishamuddin Ismail, who is from the Faculty of Business, thinks.

This, he says, is evident in the country’s online shopping trend.

Online shopping, he says, contributes to societal changes especially in the way we interact with others.

“Online shopping results in lesser interaction with others, making one more individualistic. To Malaysians, connectivity is more important than being individualistic – which isn’t our culture. And, culture plays a significant role in societal changes,” he says, explaining why despite online shopping benefits and high broadband penetration, the industry hasn’t boomed.

Universiti Sains Malaysia (USM) School of Management Assoc Prof Dr Azizah Omar points to security and privacy as reasons why we’re reluctant to shop online. She thinks Malaysians are worried about their personal information being compromised.

“You can’t use all your senses for online shopping. And, unfamiliarity with technology is an issue.”

Online transaction risks like refunds and billing issues, return policies and faulty products are a concern. But with increasing use of the Internet and the popularity of online shopping among the younger generation, it will improve, she feels.

She, however, thinks that the goods and services tax (GST) and rise in prices have weakened the spending power of consumers. Consumers are focused on buying essential items and are more cautious in their shopping habits, she notes.

“So offline, compared to online buying, is ideal as it’s easier for consumers to thoroughly examine a product before buying.”