KPDN completes e-commerce law review to regulate foreign platforms, enhance consumer protection and ensure fair transactions in the RM1.65 trillion sector.
KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living has completed a comprehensive review of e-commerce laws to improve sector regulation, including foreign platform operators in Malaysia.
Deputy Minister Datuk Dr Fuziah Salleh said the review began in April 2022 and concluded on October 15 this year, encompassing three main thrusts and 12 legal focus areas.
“Among the main focuses of this study are enhancing consumer protection, increasing fairness in transactions for all parties and creating specific regulations for online transactions,” she told the Dewan Rakyat.
She was responding to Mohd Hasnizan Harun regarding guidelines for foreign e-commerce platforms entering Malaysia and efforts to introduce stricter control policies.
Fuziah said study results are being finalised as a policy paper for Cabinet presentation before drafting as a new parliamentary bill.
“With the new law, we can ensure fairness not only to consumers, but also to traders and platform operators in ensuring a more balanced e-commerce ecosystem,” she said.
She explained the e-commerce sector is a key driver of Malaysia’s digital economy, with income reaching RM1.184 trillion in 2023 and expected to hit RM1.65 trillion this year.
Currently, only the Consumer Protection Act 1999 and Electronic Commerce Act 2006 regulate the sector, plus guidelines on foreign participation in distributed trade services.
“As I have said, the economic sector is growing larger, and surely the existing laws are insufficient to cover all the sources of power needed for us to comprehensively regulate the ecosystem,” she noted.
Regarding commission rate increases by e-commerce platforms, Fuziah said rates depend on promotion costs, advertising, system maintenance and technology development.
“The ministry is of the view that there needs to be a source of authority that will give it the power to intervene,” she stated.
She added that the new law would compel platform operators to inform the ministry before increasing commission rates.
On data sovereignty and capital outflow through foreign platforms, Fuziah said the proposed law would empower ministry monitoring of cross-border transactions.
“With this source of authority, we can collaborate with other agencies, such as the Malaysian Communications and Multimedia Commission, to monitor algorithm issues,” she concluded. – Bernama
