KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry, together with the Communications Ministry, should conduct a joint investigation into whether the latest fee structure introduced by a major e-commerce platform complies with fair trade and transparency principles, says MCA.
MCA's economic and SME affairs committee chairman Datuk Lawrence Low said the revised fee structure – set to be implemented by an e-commerce platform would affect nearly every stage of a seller's operations. These include transaction fees, marketplace commissions, platform support charges, withdrawal fees, promotional activity costs, shipping surcharges, and deductions tied to its "pay later" instalment scheme.
He said the charges are not only excessive but also risk driving many micro, small and medium-sized enterprises (MSMEs) to the brink, particularly those already grappling with rising operational costs and shrinking margins.
While some of the charges may seem small individually, Low warned that their cumulative effect would place a significant financial strain on sellers and ultimately lead to higher prices for consumers.
One of the most contentious elements, he said, is the platform support fee amounting to RM0.50 plus 8% SST (RM0.54 per order) – a charge that applies to most active sellers, particularly those with listings older than 120 days or more than 100 completed orders.
"This fee, alongside increased transaction charges and higher 'pay later' commission rates, has sparked widespread concern among sellers," he said.
"Many sellers have told us that platform commissions are now eating into their profits. Some are even considering leaving the platform altogether. When that happens, it's not just the sellers who suffer – consumers will also be affected by rising prices, and the vibrancy of Malaysia's digital economy will be at risk," Low said at a press conference at Wisma MCA on Friday (July 11).
He warned that e-commerce platforms, which once served as enablers for local entrepreneurs, are in danger of becoming extractive and monopolistic if left unchecked.
Low cautioned that such practices could trigger a domino effect, with other platforms adopting similar measures, thereby distorting competition and further weakening the position of Malaysian businesses in the digital marketplace.
He urged the government to take the lead by launching a joint investigation through the Domestic Trade and Cost of Living Ministry and the Communications Ministry, to assess whether the fee increases are consistent with fair trade principles.
Low also called on the government to expedite the introduction of a code of conduct for e-commerce platforms and to implement a platform fee declaration mechanism to ensure all future fee changes are made transparently and with proper oversight.
He stressed that supporting MSMEs – which form the backbone of the local digital economy – is essential for long-term national growth.
"Without proper safeguards, we risk giving dominant players unchecked power to dictate terms, which will hurt the development of home-grown brands and entrepreneurs," he said.
At the same time, Low urged the e-commerce platform to postpone the rollout of its new fees to give sellers sufficient time to adjust. He also called for complete transparency in the calculation and breakdown of all charges.
"This is not about rejecting digital progress – it's about ensuring that digitalisation benefits everyone in a fair and balanced way," he said. "We must build an ecosystem where platforms, sellers, and consumers can all thrive together."
Low concluded by stressing that Malaysia cannot afford to be passive in the face of growing market concentration.
"The government must take the lead in protecting our local businesses and ensuring the development of a sustainable and inclusive digital economy," he said.
