KUALA LUMPUR: The review of commission fees charged by e-commerce platforms such as Shopee, Lazada, and TikTok will be completed within the next six months, says Datuk Armizan Mohd Ali.
The Domestic Trade and Cost of Living Minister emphasised that revisiting the laws governing e-commerce is essential due to the sector's rapid growth, which has generated billions for the nation while providing business opportunities for local entrepreneurs.
"The e-commerce sector in Malaysia has demonstrated immense potential, contributing 13% to the nation's gross domestic product, amounting to RM207bil in 2021. The sector also saw a significant increase in income, rising to RM1.09bil in 2022, a 6% increase compared to RM1.03bil in 2021," he said in a written reply to Young Syefura Othman (Pakatan Harapan-Bentong) in the Dewan Rakyat on Thursday (Oct 24).
In addition to boosting the income of the rakyat, Armizan noted that the sector encourages online entrepreneurship among Malaysians through various e-commerce platforms.
However, several issues have arisen due to the rapid growth of the sector, necessitating a review to update existing laws to reflect current realities. This, he added, would ensure the sustainable growth of the sector while also protecting consumer interests.
"The existing laws on e-commerce are outdated and must be revised to align with advancements in technology and current digital programs," he stated.
Armizan indicated that the review was initiated by the ministry in April this year and is expected to be finalised by March next year.
"The review will be comprehensive and will consider the growth of the digital market, including the commission fees imposed by e-commerce platforms such as Shopee, Lazada, and TikTok," he added.
The review will encompass existing laws governing e-commerce, such as the Consumer Protection Act, Trade Description Act, and Consumer Protection Regulations (Electronic Trade Transactions).
However, Armizan clarified that the review will not address e-hailing or p-hailing platforms, such as Grab or FoodPanda, as they do not fall under the ministry's purview.
