Kuala lumpur: Low prices for goods offered on e-commerce platforms cannot be directly considered as predatory pricing or anti-competitive practices, said Deputy Minister in the Prime Minister's Department (Religious Affairs) Senator Marhamah Rosli. She emphasized the need for assessments based on facts, market data, and sufficient evidence to determine whether a practice is anti-competitive.

According to BERNAMA News Agency, Senator Marhamah Rosli stated that factors such as actual cost structure, sources of subsidies or financing, market position, the duration of the low price offering, and its impact on competitors must be considered. She reiterated Malaysia's stance as an open-market economy that encourages trade, investment, innovation, and competition, emphasizing that healthy competition benefits consumers through more competitive prices, a wider selection of products, and improved service quality.

Senator Marhamah was responding to concerns raised by Senator Datuk Phoong Jin Zhe regarding the threat posed by cross-border e-commerce platforms like Pinduoduo and Temu to micro, small, and medium enterprises (MSMEs) and the retail sector in Malaysia. Phoong highlighted the challenges faced by local traders, including higher operating costs, such as rent, employee wages, and various business taxes, which make it difficult to compete fairly with foreign sellers.

Despite the government's open-market policy, Marhamah assured that the market is not left unregulated. She stressed that the government aims to ensure a level playing field by subjecting all industry players, whether local, foreign, or digital platforms, to the same laws and responsibilities. The government will not tolerate trade practices that unfairly eliminate competitors, abuse market positions, or harm consumers and the business ecosystem.

Marhamah also highlighted the government's responsibility to ensure consumers continue to enjoy the benefits of healthy competition without compromising product safety, quality, and consumer rights, while also protecting MSMEs. She affirmed the government's commitment to safeguarding the survival and growth of the MSME sector alongside consumer rights and interests.

Additionally, Marhamah revealed that the Cabinet had agreed to draft a new e-Commerce Act to establish a comprehensive legal framework aligned with the digital economy's development. The Cabinet approved the formation of a steering and technical committee to coordinate the act's drafting process to meet the timeline. The act will address aspects such as e-commerce platform responsibilities, cross-border transactions, foreign seller compliance, consumer protection, seller and product transparency, dispute resolution mechanisms, and enforcement against entities without a physical presence in Malaysia.