Kuala Lumpur: The review of e-commerce legislation, initiated to create a more responsive legal framework for industry regulation and consumer protection, is slated for completion by August. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali revealed that the review, which commenced in April last year, is in its final phase and will soon be presented to the Cabinet for approval before being tabled in Parliament for drafting new laws or amending existing ones.
According to BERNAMA News Agency, Minister Armizan stated that the key laws under review include the Consumer Protection Act 1999 and the Electronic Commerce Act 2006. The goal is to conclude the review by year-end, securing Cabinet approval to either introduce a new legal framework or amend current laws to better address contemporary challenges. Speaking at the launch of the Sabah-level 2025 Business Digitalisation Programme at Universiti Malaysia Sabah, Armizan emphasized the need for a legal framework that is conducive, comprehensive, and relevant.
The review aims to identify gaps in existing legislation, analyze regulatory scope, and benchmark Malaysia’s e-commerce laws against international standards. It also considers industry and consumer needs, proposing new legislation or amendments along with the most effective regulatory approach for Malaysia’s e-commerce landscape.
Currently, there is no direct regulation for platform operators or sellers in the e-commerce space, and no decision has been made on whether to introduce a licensing regime or adopt a compliance-based approach. The objective is to create a regulatory mechanism that supports business growth without hindering the sector’s potential.
Armizan announced an upcoming townhall session with industry players on July 17 to gather feedback on the proposed regulatory framework. Engagement sessions have been conducted with 63 entities from the public and private sectors, along with surveys involving e-commerce firms and users. Feedback from these engagements will be analyzed to form comprehensive policy recommendations.
The e-commerce sector is projected to generate RM1.65 trillion in revenue this year, highlighting the importance of a robust legal framework to support its growth.