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The Ministry of Domestic Trade and Cost of Living (KPDN) has completed a review of e-commerce legislation, aiming to tighten regulation of the sector, including foreign platforms operating in Malaysia.
Deputy Minister Datuk Dr Fuziah Salleh said the review, initiated in April 2022 and finalised on 15 October, covers three core areas and 12 legal focus points, which will form the basis of a new e-commerce law.
“Among the main focuses of this study are strengthening consumer protection, enhancing fairness in transactions for all parties and establishing specific regulations for online transactions,” she said during a parliamentary session.
Fuziah explained that the current sector is regulated only under the Consumer Protection Act 1999 and the Electronic Commerce Act 2006, alongside guidelines for foreign participation. She added that the sector is a major driver of Malaysia’s digital economy, with revenue reaching RM1.184 trillion in 2023 and projected to hit RM1.65 trillion this year, creating new employment opportunities and expanding markets for micro, small, and medium enterprises.
The Deputy Minister also addressed rising commission fees imposed by e-commerce platforms on local sellers, noting that rates are currently determined by costs such as promotion, advertising, system maintenance, and platform development. She added that the new law would give KPDN powers to require platforms to notify the ministry before raising commissions.
Additionally, the legislation is expected to provide the ministry with authority to monitor cross-border transactions and work with agencies such as the Malaysian Communications and Multimedia Commission (MCMC) to oversee algorithms and data sovereignty concerns.
The draft policy is being finalised for presentation to the Cabinet before being tabled as a new bill in Parliament.
Source: https://www.businesstoday.com.my/2025/10/28/malaysia-to-introduce-new-e-commerce-law-to-strengthen-regulation/