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
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