Malaysia to introduce new eCommerce Bill to protect local businesses from unfair foreign competition

Foreign eCommerce platforms such as Pinduoduo have raised concerns among Malaysian traders. The products offered are typically sold significantly cheaper than local retailers, sometimes undercutting them by as much as 50%.

These platforms can ship directly from overseas, while local businesses face operating costs such as rental, storage, staffing and regulatory compliance.

During the tabling of Budget 2027 , the government announced that it will review legal and enforcement measures to protect local SMEs from unfair competition and to ensure product safety for Malaysian consumers.

Prime Minister and Finance Minister Anwar Ibrahim said the eCommerce Bill will be tabled at the next parliamentary meeting to strengthen accountability among online platforms and sellers.

One major concern is the aggressive pricing strategy adopted by foreign eCommerce platforms, including heavy subsidies, promotional discounts and low-cost international shipping. While Malaysian consumers benefit from cheaper products, local traders argue that they are unable to compete on equal terms.

The proposed eCommerce Bill is not entirely new. Last month, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government was working on replacing the Electronic Commerce Act 2006 with a more comprehensive legal framework.

Among the proposals being considered is a licensing regime for eCommerce platforms, particularly to address the influx of overseas products, consumer safety and the sustainability of local micro, small and medium enterprises (MSMEs).

According to Armizan, the government has established two committees to expedite the drafting process, involving coordination between the Ministry of Domestic Trade and Cost of Living, Ministry of Communications and Ministry of Digital. A regulatory impact assessment will also be conducted before the Bill is submitted for further consideration.

However, the government has also acknowledged the need to balance regulation without hampering the growth of eCommerce, which provides convenience to consumers and income opportunities for businesses.