Malaysia to table e-commerce bill early 2026 for stronger regulations
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the ongoing review of e-commerce laws, which began in April 2024, will conclude by August after extensive stakeholder consultations.
'The current legal framework lacks clear regulatory powers over electronic transactions. The existing Electronic Commerce Act mainly serves as an enabling act, while enforcement relies on temporary measures under the Consumer Protection Act,' Armizan told reporters after an engagement session.
He noted that Malaysia's e-commerce sector continues to grow, with revenue rising from RM1.13 trillion in 2022 to RM1.22 trillion in 2023.
The new bill aims to create a fair and comprehensive framework that supports industry growth without stifling innovation.
One key concern is the regulation of foreign e-commerce platforms. 'At present, the ministry has no authority to regulate or monitor foreign platforms without a physical presence in Malaysia,' Armizan said, highlighting issues like tax inequality and an influx of foreign products.
Discussions are underway with countries like China and Turkiye to establish government-to-government mechanisms for cross-border e-commerce oversight.
Consumer protection remains a priority, particularly regarding automated decision-making (ADM) systems and algorithms that may contain manipulative elements.
The ministry is also reviewing recent fee hikes by e-commerce platforms, which Armizan described as poorly timed.
'While blocking such decisions entirely may not be realistic, we are exploring a mechanism requiring platforms to consult with relevant agencies before implementing fee changes,' he said.
The review process has involved 23 engagement sessions, six roundtable discussions, four international benchmarking visits, and feedback from over 300 respondents.
Additional sessions will be held in Sabah and Sarawak. - Bernama
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