E-commerce law overhaul coming in 2026, Malaysia to regulate platform fees, foreign sellers

Malay Mail

17-07-2025

PUTRAJAYA, July 17 — A bill to strengthen the legal framework for e-commerce is expected to be tabled in Parliament during its first session next year, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
He said the ongoing review of e-commerce legislation commenced in April 2024 and is expected to conclude by August, involving engagement with stakeholders across the industry, among others.
'The review is necessary as the current legal framework lacks clear regulatory powers over electronic transactions, with the existing Electronic Commerce Act serving mainly as an enabling act.
'Enforcement currently depends on the Consumer Protection Act and related regulations, which were meant to be temporary. We need a comprehensive and fair framework accepted by all stakeholders to support e-commerce growth,' he told reporters after an engagement session today.
Armizan said Malaysia's e-commerce sector recorded steady growth, with revenue rising from RM1.13 trillion in 2022 to RM1.22 trillion last year.
He emphasised that new regulations must not hinder the sector's development, noting that once a mechanism is in place for local platforms, a similar approach will be considered for foreign-based operators.
He added that, at present, the ministry has no authority to regulate or monitor foreign platforms without a physical presence in Malaysia, raising concerns over the influx of foreign products and tax inequality.
Armizan also said that discussions are underway with countries such as China and Turkiye on a government-to-government (G2G) mechanism, particularly on regulating cross-border e-commerce and direct selling.
Meanwhile, Armizan said consumer protection is a key focus in the ongoing review of the e-commerce legal framework, particularly on the use of automated decision-making (ADM) systems or algorithms that may contain manipulative elements.
He said the ministry is also looking into growing concerns over recent increases in platform fees imposed by several e-commerce operators, noting that such fee hikes are business decisions made by the platforms themselves.
'In my view, the timing of their fee adjustments is not appropriate, especially since some had already revised their commission fees as recently as August last year,' he said.
He added that while blocking such decisions entirely may not be realistic, the ministry is exploring a mechanism requiring platforms to consult with them or relevant agencies before making fee changes that affect users or sellers.
To date, the review process has involved 23 engagement sessions, six roundtable discussions, four benchmarking visits abroad and over 300 respondents, with sessions in Sabah and Sarawak to follow. — Bernama