General : Gov't Proposes Licensing Regime For e-Commerce Platforms

The government is proposing to introduce a licensing regime for e-commerce platforms operating in Malaysia, including those based overseas that offer services to local consumers. The proposal is part of the upcoming E-Commerce Bill, which aims to strengthen oversight of online marketplaces, protect consumers, and ensure fairer competition for local businesses.

The move follows the government’s announcement during the tabling of Budget 2027 last week, which it plans to introduce the bill at the next parliamentary sitting. Prime Minister Datuk Seri Anwar Ibrahim previously said the legislation would strengthen accountability among online platforms and sellers, particularly amid complaints from local micro, small, and medium enterprises (MSMEs) about unfair competition from foreign e-commerce companies.

Govt Considers Licensing Requirements For Local And Overseas Platforms

As shared on his official Facebook page, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali outlined the proposed licensing framework following a steering committee meeting on the drafting of the bill. He said the government was considering requirements for both domestic and overseas platform operators, with the aim of ensuring they comply with Malaysian laws and operate in a safer, more transparent, and responsible manner.

The minister added that the proposed measures would be refined in consultation with the relevant ministries and agencies, with implementation requirements also taken into account. The government also wants to ensure that local traders can compete fairly in the digital marketplace, with overseas platforms and sellers subject to appropriate levels of responsibility and compliance.

Image: Cottonbro, via Pexels

E-Commerce Bill To Cover Consumer Protection And Dispute Resolution

According to Armizan, the proposed E-Commerce Bill will focus on four key areas: consumer protection, the responsibilities of online marketplace operators and vendors as well as consumers, efficient dispute resolution mechanisms, and alignment with international model laws.

The legislation comes as the government looks to address regulatory gaps in Malaysia’s online shopping ecosystem. In September, Communications Minister Datuk Seri Fahmi Fadzil said e-commerce platforms were not currently subject to licensing, highlighting the need for stronger oversight amid concerns over prohibited goods being sold through online marketplaces.

Image: cottonbro/Pexels

Govt Previously Raised Concerns Over Prohibited Goods

The government had also raised concerns about the sale of prohibited product s, including drugs, through online platforms. Fahmi previously called for platforms to do more than simply remove search keywords, stressing the need to tackle fake accounts used to list such products.

The proposed licensing regime could form part of the government’s effort to make platforms more accountable for their operations and the sellers using their services. However, the specific licensing requirements, which platforms would need to obtain licences, or when the new rules would take effect have yet to be announced.

(Source: Armizan Mohd Ali, via Facebook / Bernama )

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