KUALA LUMPUR: A new e-commerce Bill will give authorities stronger oversight of cross-border online transactions and better control over digital marketplace operators.
Deputy Domestic Trade and Cost of Living Minister Datuk Dr Fuziah Salleh said the proposed law would empower the ministry to intervene on issues such as platform commissions and cross-border business practices.
"At present, we do not have a legal provision that allows us to compel platform operators to disclose or regulate their commission rates.
"Currently, we rely on best practices and engagement sessions. We invite them for discussions and negotiations, but with the new law, we will have the authority to investigate and regulate such matters," she told the Dewan Rakyat on Tuesday (Oct 28).
Fuziah said cross-border e-commerce platforms such as Shopee, Lazada and TikTok Shop usually determine commission rates based on several factors, including promotional costs, advertising, system maintenance, technology development, security features, transaction management and customer support.
At present, the sector is regulated under the Consumer Protection Act 1999 and the Electronic Commerce Act 2006, while foreign participation is governed by the Guidelines on Foreign Participation in the Distributive Trade Services.
However, Fuziah said the existing legal framework no longer adequately covers the fast-growing e-commerce ecosystem.
"A comprehensive review of e-commerce legislation was launched in April last year and completed on Oct 15 this year. It focused on three core areas and 12 key legal aspects.
"These include strengthening consumer protection, ensuring fairness in online transactions, empowering enforcement powers, and improving product safety and online contract standards," she said.
She added that the findings from the review are now being finalised as a policy paper for Cabinet approval before the new e-commerce Bill is tabled in Parliament.
Mohd Hasnizan Harun (PN-Hulu Selangor) had asked about guidelines for foreign e-commerce operators entering the Malaysian market and whether or not new policies would be introduced to ensure fairer market conditions for local businesses.
According to data from the Statistics Department of Malaysia (DOSM), the country's e-commerce income broke the trillion-ringgit mark in 2021, reaching RM1.037 trillion.
The figure rose 8.7% to RM1.127 trillion in 2022, and by a further 5.1% to RM1.184 trillion in 2023.
"With the current growth trajectory, the sector is projected to reach RM1.65 trillion this year," she said, adding that the expansion of the sector continues to benefit micro, small and medium enterprises (MSMEs) by widening their market access.
