Malaysia’s PG Mall targets breaking even within three years
Malaysian online shopping company PG Mall is targeting to break even within three years.
PG Mall executive chairman Datuk Louis Ng said: “Last year we generated a turnover of about RM500,000 (US$120,800). This year we are targeting RM5 million. We expect to break even in three years time. Our target is to generate RM50 million a year in revenue in three years and RM2 million in gross profit.”
The company has so far invested about RM5 million in developing the portal.
“E-commerce is recognised as a critical enabler to accelerate the revenue growth for the Malaysian economy, under the Digital Malaysia Initiative,” said Ng.
Internet penetration in Malaysia stands at 67 per cent presently, while e-commerce contributes 5.8 per cent to the nation’sGDP, just 0.6 per cent below the target set for 2020. The size of Malaysia’s e-commerce market has ample room for growth, with increasing consumer spending, a surge in internet users, and greater acceptance of mobile commerce the main drivers. About 59 per cent of Malaysians shop online at least once a month and most of them are satisfied with the online shopping experience, said Ng.
PG Mall has partnered with POS Malaysia and telecommunications service provider RedOne to reach out to online shoppers. It currently has more than 200,000 customers and 6,000 merchants selling 500,000+ products online.