Kuala lumpur: A bill to strengthen the legal framework for e-commerce is expected to be tabled in Parliament during its first session next year, announced Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. He highlighted the necessity of this legislation to provide clear regulatory powers over electronic transactions as the current framework relies heavily on temporary measures.
According to BERNAMA News Agency, the ongoing review of e-commerce legislation began in April 2024 and is anticipated to conclude by August. This process involves engaging with stakeholders across the industry to address the gaps in the existing Electronic Commerce Act, which primarily serves as an enabling act. Armizan pointed out the dependency on the Consumer Protection Act and related regulations for enforcement, emphasizing the need for a comprehensive framework to support e-commerce growth.
Malaysia’s e-commerce sector has seen consistent growth, with revenue increasing from RM1.13 trillion in 2022 to RM1.22 trillion last year. Armizan stressed that new regulations should not impede this development and mentioned the possibility of extending the regulatory framework to foreign-based operators once local mechanisms are established. Currently, the ministry lacks the authority to regulate foreign platforms without a physical presence in Malaysia, raising issues related to foreign products and tax inequality.
Discussions with countries like China and Turkiye are underway regarding a government-to-government (G2G) mechanism to regulate cross-border e-commerce and direct selling. Consumer protection is a significant focus of the review, particularly concerning automated decision-making (ADM) systems or algorithms with manipulative elements. The ministry is also addressing concerns over increased platform fees by several e-commerce operators, recognizing these as business decisions.
Armizan noted that while it might not be feasible to block such decisions entirely, the ministry is considering requiring platforms to consult with them or relevant agencies before implementing fee changes that impact users or sellers. The review process has so far included 23 engagement sessions, six roundtable discussions, four benchmarking visits abroad, and over 300 respondents, with further sessions planned in Sabah and Sarawak.