Make foreign e-commerce platforms set up local offices, says Mas Ermieyati

Malaysian opposition MP Mas Ermieyati Samsudin has called for foreign e-commerce platforms to establish local offices and hire local customer service representatives to safeguard Malaysian businesses. She argued that platforms like Temu and Pinduoduo, which sell goods directly from factories, have an unfair edge over local retailers who face expenses such as rent, wages, and taxes.

Ermieyati made her remarks during the debate on the 2027 budget in the Dewan Rakyat. She highlighted that a Pinduoduo purchase cost only RM2.60, whereas a similar item on Mr DIY was priced around RM12. She suggested reviewing the 10% sales tax on low-value imported goods under RM500, as well as implementing stricter safety checks on products shipped from abroad.

The Public Accounts Committee chairman also criticized the high commissions and transaction fees imposed by platforms such as Shopee, TikTok Shop, and Lazada, which she believes hurt small traders, especially those just starting out. She proposed encouraging traders to sell directly through Facebook and Instagram, as these platforms charge only around 1% in fees, compared to the commissions and transaction fees of up to 20% charged by shopping platforms.

Ermieyati proposed a national DuitNow escrow service, developed in partnership with PayNet, to protect buyers. Under this system, payments would be held by a third party and released to sellers only after buyers had safely received their goods.