E-Commerce Bill crucial for healthy digital economy, fair competition - MRCA

The Malaysia Retail Chain Association (MRCA) has advocated for the E-Commerce Bill as a vital measure to nurture a robust digital economy, safeguard consumer welfare, and sustain fair market competition. MRCA president Datuk Liew Bin highlighted the importance of all Malaysian businesses, whether domestic or foreign, to comply with statutory obligations concerning taxation, product safety, consumer protection, and commercial regulations.

The association does not oppose foreign investment or e-commerce growth; instead, it envisions a harmonious coexistence between online retail and brick-and-mortar stores to broaden the market.

MRCA has suggested that the proposed legislation should explicitly define the liabilities of e-commerce platforms and merchants, enforce stricter control over non-compliant goods, bolster seller verification and dispute resolution procedures, and ensure tax transparency to level the playing field between cross-border sellers and local merchants.

In parallel, MRCA urged the government to bolster digital adoption for local SMEs by fostering omnichannel capabilities, elevating brand equity, and enabling access to overseas markets. The association lauded competition but insisted it must be equitable, stating that a thriving e-commerce ecosystem should not undermine physical retail but should create value for consumers, merchants, and the broader economy.

MRCA also raised concerns over the escalating overheads faced by the retail industry, such as increased wages, rental, logistics, and inventory expenses, coupled with intensified competition from online businesses. The association called for the government to expand access to SME financing, digital integration, artificial intelligence upskilling, homegrown brand development, and to maintain continuous dialogue with stakeholders to evaluate policy effectiveness.

While MRCA acknowledged the positive aspects of Budget 2027, it emphasized that the budget's true success depends on translating allocations and policies into private investment, job generation, productivity enhancements, and robust consumption.

MRCA advocates for fair compensation for workers while ensuring businesses' viability to create employment opportunities. They support the digital economy but demand a transparent and balanced playing field. Only through mutual benefit to the government, businesses, workers, and consumers can Malaysia's retail sector flourish sustainably and significantly contribute to national economic growth, according to Liew Bin.