This research had been carried out to determine the development of e-commerce in Malaysia. Other than that, researcher also had tried to identify the reasons to implementation by firm, impact of e-commerce on Malaysian Firms, barriers in adopting e-commerce and financial implications of e-commerce on implementing firms. Questionnaires, survey and interviews with personnel of implementing companies of e-commerce are the two methods used in conducting this research. The findings from this research indicate that the development of e-commerce in Malaysia is in fact slow moving with only a small number of implementing firms. Among the firms that had implemented e-commerce, most are large firms with full or part foreign ownership. The main reason for firms to implement e-commerce is to promote awareness of the firms and their products and services. Poor economic climate due to the recent Asian financial crisis and lack of market demand had been the two main barriers that had deterred development and growth of e-commerce. Lack of market demand is in fact the result of security concern and the lack of confidence among consumers. To persuade online trading and purchasing among businesses and consumers, this problem of security must first be solved. Since e-commerce is in its introductory stage in Malaysia, its financial implications on firms in Malaysia are still not clearly seen. Although firms are faced with barriers during implementation, they had foreseen a bright prospect for e-commerce in the near future with the impact and benefits brought by e-commerce becoming more significant. As a result, many had intended to improve on their web presence and e-commerce capabilities to include the features that allow tracking of status of orders online by customers and conducting on online surveys. Seeing the prospects of e-commerce, efforts by the relevant parties including the government and companies are greatly needed to develop e-commerce and to solve the current problems faced in developing e-commerce. Recommendations had been drawn to solve the problems faced and suggestions are given on how to boost up e-commerce development in Malaysia. The provisions of financial aid to needing Malaysian companies, increase the Internet population and number of Internet Service Provider, improve security of e-commerce transactions and educate the consumers are among the recommendations made. It is advised that the relevant parties adopt the recommendations drawn by researcher and analysis in order to boost up the development of e-commerce in Malaysia.
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Bachelor of Arts (Hons) In Accounting
December 2000