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

Public Accounts Committee chairman Mas Ermieyati Samsudin, who chairs the PN-Masjid Tanah seat, has called on foreign e-commerce platforms like Temu and Pinduoduo to establish offices in Malaysia to safeguard local businesses. She argued that platforms with sales exceeding a certain threshold should register a company in the country, open an office, and appoint local customer service representatives.

Samsudin highlighted the unfair advantage these Chinese platforms gain by selling directly from factories, avoiding rent, wages, and taxes that local retailers face. She cited a personal example, noting that a notebook purchased on Pinduoduo cost only RM2.60, as opposed to RM12 at Mr DIY. She urged a review of the 10% sales tax on low-value imported goods below RM500 and stricter safety inspections for foreign-shipped products.

Despite high charges, platforms such as Shopee, TikTok Shop, and Lazada had invested in Malaysian operations. Samsudin criticized commissions and transaction fees of up to 20% as detrimental to small traders, especially newcomers. She proposed encouraging direct sales through Facebook and Instagram, where traders could sidestep platform commissions and pay only basic processing fees of around 1%.

To protect consumers, she suggested a national DuitNow escrow service where payments would be held by a third party until buyers confirmed receipt of their purchases.