MSMEs Urge Dialogue On e-Commerce Fee Structure Plans
Alvin Low Wei Yan, Secretary-General of MAMBA, emphasised the need to avoid 'scare tactics and politicising important conversations that directly affect thousands of Malaysian sellers.' He stressed the importance of open discussion to ensure a win-win situation for sellers, shoppers, and platforms alike.
MAMBA acknowledged that price hikes are challenging but highlighted current global dynamics, particularly the escalating US-China trade war and the imposition of tariffs. These factors are expected to trigger 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 consumers in Malaysia, undercutting local sellers and threatening their long-term survival,' Low stated, anticipating an acceleration of this trend in the coming months.
To counter these pressures, MAMBA believes it is critical for both the Government and local sellers to support and collaborate with platforms that continue to prioritize MSMEs. The association stressed that platforms must continue investing in infrastructure, tools, and services to improve customer satisfaction, such as faster delivery, reliable refund processes, better search functions, and AI-powered product recommendations. These improvements are seen as vital for attracting buyers, increasing traffic, and boosting visibility and conversion rates for sellers.
Low underscored that 'good customer experience is not just a buyer issue—it's a seller issue too.' He added that platforms need significant investment to independently fund upgrades in areas like AI tools, logistics, fraud prevention, and customer support. 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 these joint investments by both sellers and platforms will ultimately yield positive returns. Citing data from GlobalData, MAMBA noted that the Malaysian e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 8.5% between 2024 and 2028, reaching MYR67.1 billion (USD14.7 billion) by 2028. This outlook, they argue, reinforces the importance of reinvestment and innovation for long-term competitiveness.
The association reiterated the importance of balancing MSME needs with rising customer expectations, cautioning against 'blanket criticism' of e-commerce platforms. Low warned that 'calling for authorities to threaten or punish platforms simply for raising fees is counter-productive and risks undermining the very ecosystem we are trying to strengthen.'
MAMBA calls for an open dialogue between the government, platforms, and seller associations to chart a sustainable and inclusive path forward, ensuring Malaysian MSMEs continue to thrive amidst mounting global pressures. Related
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 minutes ago
- The Star
Digital payments to surge in Malaysia
KUALA LUMPUR, July 23 (Xinhua) -- Digital payment adoption is set to surge in Malaysia, with more consumers likely to use emerging digital payment methods in the next year, a new research conducted by Mastercard showed. The research, which surveyed consumers across the globe on payment preferences, has found that some 63 percent of Malaysian consumers prefer using new and innovative methods such as Tap & Go mobile payments, biometric payments, QR codes and mobile wallets, over traditional methods like cash or manual card entry, reflecting a widespread appetite for innovation. The research showed that Malaysian consumers are among the most enthusiastic to embrace payment innovation, as 93 percent are likely to use five or more payment methods in the next 12 months. While cash is still Malaysia's most used payment method, 70 percent of consumers used it in the last year, narrowly edging out QR code payments with 64 percent, usage of digital payment methods is set to rise in the next year. This preference for innovation applies to other emerging technologies as well, with 89 percent of Malaysian consumers saying they are keen to use artificial intelligence (AI) to manage their finances, particularly for fraud detection, payment automation, product personalization, and predicting financial outcomes. Meanwhile, as payment options grow, consumers are seeking hyper-convenient ways to manage money that fit seamlessly with their digital usage habits, the research revealed. It highlighted they want flexibility to customize how they pay, tapping into digitally native methods like peer-to-peer or peer-to-merchant payments, QR codes, wearables, and social commerce. "These findings reaffirm that the digital evolution in payments has firmly taken center stage in Malaysia. With digital-first and mobile-first lifestyles shaping consumer behavior, innovation and security in payments will be key to sustaining this momentum," said Beena Pothen, country manager of Malaysia & Brunei at Mastercard.
The Star
15 minutes ago
- The Star
Chinese automakers unveil new models at Indonesia auto show
JAKARTA, July 23 (Xinhua) -- Chinese automakers on Wednesday unveiled new electric vehicle (EV) models in Indonesia, as demand for EVs continued to grow across the Southeast Asian country. At the GAIKINDO Indonesia International Auto Show (GIIAS), held in Tangerang, Banten province, Chinese automaker BYD launched its Atto 1 model, known as Seagull or Dolphin Mini in China. "This is the first Atto 1 in Southeast Asia. We're offering it in two variants: Dynamic and Premium," said BYD Indonesia Operations Director Nathan Sun during the launch. Meanwhile, Wuling introduced a new multi-purpose vehicle designed for both family and business use, called the Cortez Darion. The Cortez Darion will be available in two versions: a plug-in hybrid and a full battery electric vehicle. The 2025 GIIAS officially opened on Wednesday, with public days scheduled from July 24 to Aug. 3.
New Straits Times
2 hours ago
- New Straits Times
EU-China talks test unity as tariffs and war frictions dominate
EXPECTATIONS are rock-bottom for a European Union-China summit today that will test European resolve and unity as the bloc faces intense trade pressure from Beijing and the United States, analysts say. European Commission president Ursula von der Leyen and European Council president Antonio Costa plan to press Chinese leaders on rare earths and the war in Ukraine, both areas of tension, during the summit in Beijing. There is little hope for headway, at a time both sides face major challenges sustaining economic growth and Europe struggles to shore up support for Ukraine. Both sides may reach a modest joint statement on climate, a source familiar with the planning said, but no other tangible achievements are expected. In recent speeches, von der Leyen has revived hawkish China rhetoric, accusing China on July 8 of "enabling Russia's war economy" and flooding global markets with overcapacity. "We know that we don't see eye to eye with China on many issues, but we believe that it is essential to have this kind of very direct and open and constructive conversation," said one EU official. A spokesperson for the European Commission referred to a statement announcing the summit, which said leaders would discuss ways of ensuring "a more balanced, reciprocal and mutually beneficial trade relationship". In response to Reuters' questions, the Chinese Foreign Ministry referred to a spokesperson's statement on Monday. "Some people in Europe continue to ... exaggerate specific economic and trade issues and make groundless accusations against China on the Ukraine issue, causing unnecessary interference to China-EU relations," its spokesperson said. The 27-member European Union has also been negotiating hard with Washington after President Donald Trump threatened 30 per cent tariffs on most EU exports from Aug 1, with prospects for a broader trade deal fading. At the Beijing summit, China hopes to press the EU for a solution to its tariffs on China-built electric vehicles, for which Beijing claims price commitment negotiations are in the "final stages". Last week, China threatened to respond to EU sanctions on two Chinese banks and five firms over the Ukraine war. Its Commerce Ministry said on Monday the sanctions "seriously harmed trade, economic and financial ties". Other trade disputes are simmering in the background. China retaliated against EU restrictions on medical device procurement with its own curbs on July 6, and slapped duties on French cognac producers. China's exports to the EU grew in May while its US exports plunged 34.5 per cent in value terms the same month, sparking fears Chinese trade overcapacity is being diverted to the bloc due to US tariffs on Chinese goods. There is also a growing sense that EU firms are collateral damage for China's rare earth export controls that primarily targeted Washington but have disrupted European defence and automotive supply chains. In return for concessions on rare earths, China's asks could include reviving a long-stalled investment agreement after Beijing lifted sanctions on European Parliament members in May, and pushing back on US export curbs on Dutch firm ASML's chipmaking equipment. China has raised both in the weeks leading up to the summit, two sources familiar with the matter said. "The mood is extremely pessimistic in Europe regarding the summit," said Mathieu Duchatel, a director at the Institut Montaigne think tank in Paris. He said that Washington rejected previous EU proposals for coordination on China policy. "There is a sense that the gloves are completely off on the Chinese side. "They sense the transatlantic relationship has weakened and are trying to seize the opportunity." Diplomats and analysts also say that China is growing increasingly frustrated behind closed doors with European officials' repeated insistence on the war in Ukraine, which Beijing views as an obstacle in the relationship. There is little space for constructive dialogue on this, another EU official said, with Chinese counterparts denying evidence of Chinese firms' involvement in supplying dual-use goods to Russia.
