Budget 2027: Govt To Propose E-Commerce Bill To Regulate Foreign Platforms Operating In Malaysia

The Malaysian government has announced plans to propose an E-Commerce Bill during the next parliamentary sitting, as detailed in Budget 2027. This legislation aims to enhance accountability among online platforms and sellers, with a particular focus on regulating foreign e-commerce companies operating within the country. Prime Minister Datuk Seri Anwar Ibrahim addressed the concerns expressed by micro, small, and medium enterprises (MSMEs), who face unfair competition from these foreign companies without sufficient oversight.

The government is accelerating legal and enforcement measures to shield local MSMEs from such unfair competition while ensuring the safety of goods purchased by the public. The incident that prompted this move occurred when Malaysian retailers expressed worries about the impact of cross-border e-commerce platforms, such as China's Pinduoduo, which offer products at extremely low prices.

These local businesses find it challenging to compete with the sudden influx of inexpensive imported goods, which operate under different regulatory, taxation, and compliance requirements. Deputy Communications Minister Teo Nie Ching clarified that the bill is designed to level the playing field for all such platforms and to protect Malaysian consumers.