PETALING JAYA: Foreign e-commerce platforms serving Malaysian consumers may need licences under a proposed law aimed at strengthening consumer protection and tightening oversight of online transactions.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said a licensing regime for e-commerce platform operators, including those based overseas but offering services to Malaysian consumers, was among the proposals being considered under a new E-commerce Bill.
"The proposed legislation aims to establish a comprehensive legal framework that keeps pace with the rapid growth of the digital economy and the increasingly complex nature of online transactions," he said in a statement on Wednesday (Oct 14).
The proposed law focuses on four key areas: protecting consumers against unfair trade practices, clarifying the responsibilities of online marketplace operators and sellers, improving dispute resolution, and aligning Malaysia's regulatory framework with international best practices.
Armizan said the legislation would strengthen enforcement against cross-border e-commerce platforms that offer products and services directly to Malaysian consumers.
The Bill would also clarify the responsibilities of online marketplace operators, online vendors and users, including the obligations of foreign platforms and sellers operating in the Malaysian market.
"The proposed licensing regime aims to ensure accountability and compliance with national laws, while creating a safer, more transparent and responsible e-commerce ecosystem," he said.
The proposed framework also seeks to ensure fairness for local traders and consumers by requiring foreign platforms and sellers to meet appropriate responsibilities and comply with Malaysian law.
This is intended to promote fair competition between local businesses and foreign operators while strengthening safeguards for consumers purchasing goods and services online.
Another focus is improving the resolution of disputes arising from online transactions.
Armizan said the proposed legislation aimed to make the process "faster, easier and less costly" for all parties, giving consumers and businesses a more efficient way to resolve disputes.
The Bill would also take into account international model laws and global best practices to facilitate cross-border trade and ensure Malaysia's regulatory framework keeps pace with developments in the digital economy.
However, the proposed licensing regime has yet to be finalised. Armizan said the framework was still being refined in consultation with relevant ministries and agencies.
The discussions include clarifying the respective jurisdictions of the agencies involved and determining suitable requirements for implementation.
The Cabinet agreed to the policy proposal for new e-commerce legislation on July 8. The introduction of the Bill was subsequently announced as part of the Budget 2027 commitments.
