Govt plans to introduce licensing regime for e-commerce platforms

PUTRAJAYA: The Malaysian government has announced plans to introduce a licensing regime for e-commerce platform operators, including those based abroad but providing services to Malaysian consumers, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. The proposal, discussed at a steering committee meeting chaired by Armizan, aims to enhance platform accountability, ensure adherence to national laws, and foster a safer, more transparent e-commerce environment.

The proposed regulatory measures will be tailored to align with the relevant jurisdictions of ministries and agencies, as well as practical implementation needs, Armizan stated. The drafting of the E-Commerce Bill also prioritizes safeguarding the interests of local traders to ensure fair competition in the digital marketplace. The government seeks to impose appropriate levels of responsibility and compliance on both local and overseas platforms and sellers.

The steering committee meeting aimed to refine efforts to bolster the legal framework governing Malaysia's e-commerce landscape, reflecting the bill's goal of establishing a comprehensive legal framework in sync with the accelerating digital economy and the growing intricacies of online transactions. The proposed bill covers four main areas: consumer protection, the duties of online marketplace operators, online vendors, and consumers, efficient dispute resolution, and alignment with international model laws.

Prime Minister Anwar Ibrahim announced the government's intention to introduce the E-Commerce Bill during Budget 2027's presentation in the Dewan Rakyat, emphasizing the need to strengthen online platforms and sellers' accountability.