The Future Of Shopping In Malaysia Is Here (And It’s Powered By AI)

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From using AI-powered shopping assistants to buying directly off their social media feeds, Malaysians are embracing new retail technologies at lightning speed.

And if the latest Adyen Retail Report 2025 is anything to go by, shoppers here aren’t just buying more, they’re buying smarter and they expect brands to keep up.

Based on surveys with 1,000 Malaysian consumers and 500 businesses (part of a global study spanning 41,000 consumers across 28 markets), the report paints a clear picture that Malaysians want fast, convenient, tech-savvy shopping experiences that deliver the best value.

Malaysians Are Letting AI Pick Their Next Purchase

Malaysians are ahead of the curve when it comes to AI-assisted shopping.

According to the report, 58% of consumers in Malaysia use tools like ChatGPT, smart search engines, and shopping chatbots to guide their purchase decisions—well above the global average of 37%.

What exactly are Malaysians using AI for? Turns out, quite a lot:

• 71% use it for quick ideas on meals, outfits, and purchases
• 69% say it’s helped them discover new brands
• 18% have even gotten product ideas from AI
• 60% say they’d be open to shopping directly through AI in the future

According to Soon Yean Lee, Country Manager for Malaysia at Adyen, we are entering an era where AI goes beyond convenience.

Unsurprisingly, younger consumers are leading the charge, with AI usage highest among Gen Z (74%) and Millennials (65%). But even 25% of Baby Boomers now use AI to support their shopping.

Interestingly, Millennials saw the biggest year-on-year jump in AI usage (+40%), followed by Gen X (+33%).

Social Media Is the New Shopping Mall

Social media isn’t just for scrolling anymore, it’s the new storefront. According to the report:

• 57% of Malaysians now shop directly on social platforms, averaging six purchases a month
• 45% are more likely to buy a product if it’s trending
• 52% say recommendations from friends or influencers drive their purchases
• 41% trust influencer endorsements more than traditional ads

And this trend cuts across generations. While Gen Z (50%) and Millennials (53%) are most responsive to social trends, Baby Boomers (26%) say they’ve been influenced by viral products online too.

Fraud Is Becoming a Real Concern

With digital commerce on the rise, fraud is a growing issue. 41% of Malaysian consumers reported experiencing fraud in the past year.

The financial impact on businesses is significant too, with companies reporting RM6.29 million in fraud-related losses.

Top fraud methods include:

• Credit card scams (16%)
• Social engineering (14%)
• Identity theft (12%)
• Account takeovers (10%)

To combat this, 46% of businesses are planning to adopt AI to reduce fraud risk.

Despite the Tech, Malaysians Still Love In-Store Shopping

Even with the digital buzz, Malaysians still have a soft spot for brick-and-mortar stores:

• 57% like to see and feel products before buying
• 53% enjoy being able to take things home immediately
• 49% value the in-store try-before-you-buy experience

As shopping habits shift, Malaysian consumers are seeking more flexible, hybrid experiences that blend online convenience with offline engagement.

In fact, 55% want retailers to make in-store visits more exciting with features like augmented and virtual reality, in-store cafés, and special events.

Easy Checkout or Customers Check Out

A slow or clunky checkout is a major turn-off for Malaysian shoppers. According to the report, payment friction and accessibility are the top reasons why customers abandon their intended purchases:

• 56% will leave if the payment process takes too long
• 54% will leave if their preferred payment method isn’t available
• 39% of customers want simpler returns and exchanges between online and physical stores
• 72% want a seamless shopping experience across social media, apps, and websites

To tackle this, 58% of businesses are upgrading their checkout systems—introducing self-service kiosks, Tap-to-Pay, one-click payment options, and AI tools to speed things up.

As Lee explains, businesses are under pressure to deliver seamless experiences without compromising on security, customer satisfaction and profits. That’s where AI can help, he says.

AI is increasingly becoming a key driver of retail performance. Retailers generate large volumes of payments data daily, and AI helps unlock this value to drive conversions at scale. Earlier this year, we launched Adyen Uplift, an AI-powered payment optimisation suite that helps businesses identify genuine shoppers more effectively, reduce fraud, and increase payment success rates with minimal friction.

Adyen Country Manager for Malaysia Soon Yean Lee.

But faster checkout is only part of the solution. Today’s shoppers move quickly between apps, websites, and stores, and they expect the entire experience to feel connected.

This is where unified commerce comes in to integrate online, in-store, and social channels into one seamless system.

Based on the report, currently, only 52% of Malaysian businesses offer unified commerce, but another 26% plan to implement it within the next year.

For consumers, this means flexibility like browsing online, buying in-store, and returning via an app, all with consistent pricing and real-time inventory.

For retailers, it opens the door to greater efficiency, better insights, and stronger customer loyalty.

With AI, social media, and all kinds of smart tech changing how we browse, buy, and even pay, the whole shopping experience is getting a serious upgrade.

These days, it’s clear that only the brands that keep up with our habits, our vibes, and our expectations will end up in our carts.

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