KUALA LUMPUR: The government is in the process of assessing a proposed legal framework for e-commerce, aimed at protecting local micro, small and medium enterprises (MSMEs).
The initiative also seeks to strengthen oversight of digital platforms and reduce the spread of counterfeit goods.
Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, explained that the move addresses growing concerns about unequal regulatory treatment between local entrepreneurs and foreign vendors selling directly to Malaysian consumers via online marketplaces.
He noted that while Malaysia continues to support an open market—allowing overseas sellers access to local consumers to maintain product variety and competitive pricing—there is increasing concern over regulatory gaps.
“Nonetheless, we recognise the need for a more level playing field. We are currently reviewing new regulations to improve accountability among e-commerce platforms and ensure the long-term viability of local micro, small, and medium enterprises (SMEs),” he said.
Armizan made the comments today while answering a parliamentary question from Young Syefura Othman (Bentong) during a special sitting of the Dewan Rakyat.
He added that potential measures under consideration include requiring foreign businesses targeting Malaysian customers to adhere to national laws, appointing authorised local representatives, reinforcing platform liability, and exploring the use of extraterritorial enforcement.
On the issue of counterfeit items, the minister emphasised that illegal products on online platforms are a serious concern, as they harm local brands and may endanger consumer health and safety.
