mobile malaysia - ahead of the south-east asia pack

MOBILE MALAYSIAAHEAD OF THE PACK

Photo: Fayez

Malaysians are internet-savvy, well-educated and fashionable consumers…

…with broadband, smartphones and disposable income.

population

65.8% internet

penetration

!Source: Euromonitor (2013)

POPULATION

3G  SUBSCRIPTIONMOBILE  PHONE  PENETRATION

%  POP.  AGE  15  –  34  YEARS

29 Million

140%

34%

66%

INTERNET  USERS*,  %  POPULATION

Source: The World Bank (2012), Euromonitor (2013), Household Size Economies: EAP (2011), Wikipedia (2014), Ministry of Communication (2011)

INTERNET  USER  GROWTH  (2009-­‐12)

18%

10 Million

Key internet & mobile statistics

g

O

^

Malaysia is extremely mobile friendly, with mobile penetration rates higher than its famous neighbour, Indonesia, and the US.

Beating Indonesia & USA

!Source: The World Bank (2012)

Mobile phones are primary devices at home that connect to the internet

Which of these items does your household currently own?

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012

Mobile phone

A computer

!Source: Euromonitor (2013)

13 million mobile internet users thanks to affordable data plans and free wifi

96%use their phone at home 72%

use their phone on the go

83%use their phone at work

Where do you tend to use your smartphone?

Source: Google (2013), BuzzCity (2014)

Feature phone 65%

Smartphone 35%

Feature phones still rule, not for long

!Source: Google (2013), McCan (2012), Euromonitor (2013)

47% own multiple phones

53% own just one phoneOf all mobile phone owners:

McCann prediction: “Smartphones will rise to 60% by 2015”

Malaysians replace their mobiles every 21 months, more often than other devices

How often do you replace these devices?

Mobile Phones

Tablets

Cameras

In-car navigation

Video players

Laptops

Televisions

Camcorders

Months

0 10 20 30 40 50

21Mobile phones

!Source: Phone arena (2011), Euromonitor (2013)

US

UK

KR

ZA

JP

DE

BR

IN 94

81

46

46

38

27

22

22

They spend more to upgrade their feature phones toa smartphone

As a result unit price is higher, but mobiles phones are becoming CHEAPER as competition grows and new models are released.

!Source: Euromonitor (2013)

Good time for consumers - three competing mobile operators drive down prices

Smartphone OS

Handset carrier

Smartphone OS only Source: Euromonitor (2014)

Celcom 37.8%

Maxis 33.3%

Digi 28.9%

Android 65%

iOS 13%

Windows 13%

Blackberry 9%

Malaysia has relatively high levels of 4G coverage, far above other developing Asian countries!

Network with cheapest package

Fastest network with LTEMaxis (75Mbps)

DiGi (from $4.50/month)

Most reliable 4G coverageCelcom (96.07%)

Source: Leaping Post (2013), OpenSignal (2014)

Other countries with good 4G coverage: Japan, South Korea, Hong Kong

Malaysian 4G networks

+325% Better than the average US city

+506% Better than the

worldwide average

Plus… Last year, DiGi further improved its 3G networks to be able to reach 95% of Malaysians, as well as becoming LTE technology ready!

Source: Euromonitor (2014), OpenSignal (2014)

4G LTE is limited to the major cities…for now!

Existing 4G networks in Malaysia are:

Average number of hours per day spent by internet users on the internet

Malaysia Indonesia Hong Kong World Average Singapore China Vietnam Japan

1

1.71.922.12.1

2.5

3.1

Malaysia ranks highest for daily internet usage in South-East Asia

Source: We are Social (2014)

Malaysia

for social networking

of smartphone owners use their phone

79%

Source: PwC (2013)

Any social network

Facebook

Google+

Twitter

Instagram

Linkedin 9%

16%

23%

32%

59%

72%

32%

40%

57%

77%

95%

98%

Own an account Used in the past month

Source: We are Social (2014)

98% of internet users are on social media

18 million Malaysians

70% of Malaysians refer to brand’s social media presence before making a purchase decision

“Malaysian netizens view social network sites 14 billion times every month”

That’s 731 times per person

Source: We are Social (2014)

Malaysians have the highest average number of friends on

social networks in the world.

233 friends on Facebook which is nearly 80% higher

than the global average.

Source: we are social (2011)

G

9 out of 10 use their phone for video, music, games

!Source: Google (2013), photo: John Ragai

HUNGER FOR ENTERTAINMENT!

”80% of internet users in Malaysia stream online video content each month, and 51% have an active YouTube profile.”

Source: we are social (2012)

Simon Kemp, we are social

74% play games on their phone

Source: Euromonitor (2013), *AppAnnie (25.02.2014)

Social platform like Facebook and Line messenger have helped boost the popularity of casual games. !Role playing games have a very strong presence in the highest grossing games both on iOS and Android. !On iOS the first non-game in the highest grossing category is Skype only at #77!*

J”Malaysians are used to making payment online in recent years thanks to the AirAsia wave since 2001 and daily deal sites invasion since 2011.”

Source: we are social (2012)

CK Wong, ecommerce.milo @ckaywong

91% of connected Malaysians shop online

Source: Euromonitor (2013), we are social (2012)

.$380 mil $2,000

ecommerce turnover in 2013

average yearly spend on online purchases

$

Buyer’s remorse

ff ff

fkk

kkk

71% of Malaysian shoppers regret their online purchase because products looked different than advertised or were of poor quality.

Source: Rakuten (2013)

Why hasn’t m-payments taken off?

Source: Ecommercemilo (2013), World Pay (2013)

• Existing popular methods • Lack of infrastructure • Low awareness

Bank transfersCredit cardsOther PayPal, cash on delivery, Celcom AirCash etc

13%

38%50%

Only 0.3% of transactions are m-payments…

Mobile Money

Source: Ernest & Young (2013), WorldPay (2013), comScore (2009)

M-Money on a mission to change that - offers both the convenience and infrastructure Malaysia needs to speed up the adoption of mobile payments. !Teaming up with Western Union, Malaysians can pay into their M-Money accounts using their phone, online or through “cash-in” channels. They can then top-up their airtime, pay their bills, and purchase items such as cinema tickets. !

>1000 retailers

M Money cash-in channels

Bank Islam CIMB

Public Bank Hong Leong

RHB

Mobile Money Transfer Service

Mobile Malaysia !• Very well connected - 66%

population online • Shopaholics - majority have

bought things online • Ahead of neighbours - higher

average income, 4G coverage, ecommerce penetration !!Malaysia is ahead of Indonesia, Thailand, Vietnam and other south-east Asian up and comers.

On Device Research uses the mobile internet to gain access to consumer opinion any time or location. !

Our reach in Malaysia:

• 1000 unique respondents a day

• Smartphones and feature phones (35% vs 65%)

• From $3.50 per interview

ondeviceresearch.com Request a quote!

Reach consumers in Malaysia

Contact Siim Teller siim@ondeviceresearch.com +44 207 278 2267 !!!Follow us:

! " # $

Have a question about mobile research?