Malaysia is writing new e-commerce rules. But are we regulating too late? — Chong Say Lee

Malaysia is drafting new e-commerce regulations, but the question arises whether they are enacting rules too late. A Malaysian shopper may visit Pinduoduo and find an item from China priced at only RM1, with free shipping and instant payment. The product can travel thousands of kilometers to reach the buyer without any involvement from a Malaysian importer, distributor, or retailer.

This illustrates how far e-commerce has come since Malaysia introduced the Electronic Commerce Act in 2006. The government's new E-Commerce Bill is timely, but the bigger challenge may be ensuring those rules remain effective when millions of small transactions cross borders at lightning speed. While Malaysia can enforce products to meet SIRIM-related standards and prohibit restricted items, determining whether the exact item purchased by the consumer meets those requirements poses a challenge.

This issue becomes evident with electrical appliances, where a product made for the Chinese market might have different plugs, cords, specifications, or approval status. Similarly, tyres and smartphones also exhibit similar problems, as their suitability for the Malaysian market cannot be easily determined by mere photographs and reviews.

E-commerce companies like Temu (Pinduoduo) founder Colin Huang's company deliver products across borders, making it difficult for Malaysian consumers to verify if the product meets the country's safety requirements. The new E-Commerce Bill should focus on ensuring Malaysian standards apply to all products, regardless of who sells them, rather than protecting local sellers.