• 2025-07-15 07:26 PM

KUALA LUMPUR: The Malaysian Micro Business Association (Mamba) is calling for a more balanced and constructive dialogue surrounding the recent adjustments to e-commerce platform fee structures.

Secretary-general Alvin Low Wei Yan said that while the association understands the concerns raised by various stakeholders, Mamba believes the issue demands a holistic perspective—one that considers both the sustainability of digital platforms and the competitiveness of local micro, small, and medium enterprises (MSMEs).

“We must avoid scare tactics and the politicisation of important conversations that directly impact thousands of Malaysian sellers.

“There must be room for discussion—so that everyone, from sellers to shoppers to platforms—can benefit,” he said in a statement.

Mamba acknowledges that price hikes are never easy, but stresses that global dynamics—particularly the escalating US-China trade war and rising tariffs—are likely to result in a surge of low-cost Chinese products being redirected into Southeast Asian markets, including Malaysia.

“We are already seeing cheap imports entering the market through new and existing e-commerce platforms targeting Malaysian consumers, undercutting local sellers and threatening their long-term survival,” Low said.

“This trend is expected to accelerate in the coming months, and we must prepare for it strategically.”

Mamba urges both the government and local sellers to support and collaborate with platforms that prioritise MSMEs within their ecosystem.

To counter current pressures, Mamba believes platforms must continue investing in infrastructure, tools, and services that enhance customer satisfaction such as faster delivery, reliable refund processes, improved search functions, and AI-driven product recommendations.

These enhancements not only attract buyers but also increase traffic, visibility, and conversion rates for sellers.

“Customer experience is not just a buyer issue—it’s a seller issue too,” said Low.

“When platforms are seen as trustworthy, convenient, and efficient, everyone benefits. Sellers operating on such platforms are better positioned to build customer loyalty and drive repeat business.”

“Going it alone is not only costly—it’s unsustainable,” he added.

“For any e-commerce platform to fund major upgrades in AI tools, logistics, fraud prevention, and customer support independently, it requires significant investment. If platforms are unable to reinvest due to pricing pressure or policy uncertainty, the entire seller ecosystem will suffer in the long run.”

Mamba believes that joint investments by both sellers and platforms will yield long-term benefits.

According to data and analytics firm GlobalData, Malaysia’s e-commerce market is projected to grow at a compound annual growth rate of 8.5% between 2024 and 2028, reaching RM67.1 billion (US$14.7 billion) by 2028.

This outlook highlights the long-term potential of the digital economy, and the need to stay competitive through reinvestment and innovation.

At the same time, Mamba emphasises the importance of balancing MSME needs with rising customer expectations.

Poor buyer experiences caused by delivery delays, miscommunication, or a lack of transparency—have a direct impact on seller performance, ratings, and returns.

“That’s why blanket criticism of e-commerce platforms may not be helpful,” said Low.

“Calling for punitive actions against platforms simply for adjusting fees is counter-productive and risks undermining the very ecosystem we are trying to strengthen.”

Mamba calls for open, collaborative dialogue between the government, platforms, and seller associations to chart a sustainable and inclusive path forward—ensuring Malaysian MSMEs continue to thrive amid global headwinds.