AMID on-going regulatory review of Malaysia’s e-commerce framework which is expected to be tabled in Parliament in early 2026, online sellers are navigating rising operational costs, including higher fees, utilities, logistics and wages.
Many Malaysian micro, small, and medium enterprises (MSMEs) are finding their margins under sustained strain even as digital commerce continues to grow in scale and importance with e-commerce and ICT together contributing 23.4% of Malaysia’s economy in 2024.
The conversation around platform fees should be seen in the context of this evolving digital ecosystem.
We understand why MSMEs are concerned about costs. Many sellers are already managing higher utilities, logistics charges and wage pressures.
At the same time, e-commerce is no longer a fringe channel. It is a core part of Malaysia’s economy and operating at this scale requires robust systems, enforcement and reliable processes.
As buyer expectations rise, sellers face real business risks from delays, system failures and service inconsistencies.
These issues can result in cancelled orders, refunds, penalties and the loss of repeat customers. Addressing them requires on-going investment across the ecosystem not only from platforms but from sellers as well.
Re-investment is a must
Against this backdrop, discussions about e-commerce platform fee adjustments have surfaced in the public discourse.
The Malaysian Micro Businesses Association (MAMBA) recognises that these conversations can be sensitive but they reflect a natural evolution as the online business ecosystem matures.
Higher service expectations require stronger logistics, better systems and increased operational reliability. These improvements carry real costs which need to be shared across the ecosystem in ways that are sustainable for sellers and beneficial for consumers.
In this regard, MAMBA emphasises that any fee adjustments must deliver tangible value to sellers.
Platforms with sufficient resources can re-invest into targeted MSME support programmes, including tailored onboarding and performance improvement programmes, enhanced data and analytics tools, personalised operational support alongside temporary commission or participation waivers for smaller sellers to help businesses improve efficiency and margins.
Such measures should be designed not as long-term dependencies but as stepping stones that help sellers build stronger, more resilient businesses.
Additional investment should also support marketplace integrity and growth. This includes measures to prevent counterfeit and non-compliant products, protect legitimate sellers and to enable MSMEs to access new domestic and cross-border markets.
Shared responsibility means stronger ecosystem
When platforms invest back into sellers and sellers actively re-invest in strengthening their own capabilities, the entire ecosystem becomes more resilient and competitive.
Any resources generated through platform improvements should ultimately go back to supporting sellers in meaningful ways through clearer guidance, more effective tools and initiatives that help MSMEs operate smarter and grow sustainably.
At the same time, growth cannot be driven solely by platforms. As business owners, sellers also need to commit to investing in their own capabilities whether that means time, effort or resources.
Absorbing necessary costs should be seen not as a burden but as part of building a more resilient and competitive business.
When platforms and sellers take a balanced, shared responsibility approach to growth, we create a stronger ecosystem where long-term value is generated and shared by all.
At the same time, MAMBA also calls on the government to play an active role in supporting online businesses.
Policies that provide access to infrastructure, targeted upskilling initiatives and frameworks that simplify compliance and operational requirements will help MSMEs thrive in digital commerce.
By combining platform re-investment, seller commitment and government support, Malaysia’s e-commerce ecosystem can continue to grow sustainably while protecting both consumer trust and seller livelihoods.
As the sector enters its next phase of growth, MAMBA believes a more mature mindset is required.
Rather than relying on cost structures from earlier stages of digital commerce, MSMEs need support to operate smarter through better processes, upskilling, access to shared infrastructure and coordinated government and industry initiatives that strengthen long-term sustainability.
Sustainable growth will depend less on short-term trade-offs and more on collective improvements in quality, reliability and professionalism that allow Malaysian MSMEs to compete and grow together.
Alvin Low Wei Yan is the secretary-general of the Malaysian Micro Businesses Association (MAMBA).
The views expressed are solely of the author and do not necessarily reflect those of MMKtT.
- Focus Malaysia.
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