E-commerce rules must protect SMEs without driving up prices, says MCA

 

THE government must clarify how proposed tighter regulations on cross-border e-commerce will protect local businesses without driving up prices for consumers, said an MCA leader.

Its Economic and SMEs Affairs Committee chairman Datuk Lawrence Low’s remarks come as the government considers a licensing regime for e-commerce platforms, including overseas operators serving Malaysian consumers, as part of efforts to strengthen platform accountability and ensure fair competition.

The government is also reviewing the enforcement of regulations governing foreign products entering the local market amid concerns from micro, small and medium enterprises (MSMEs) over competition from overseas sellers.

Low said the government should explain whether the proposed measures were intended to address illegal practices or could restrict access to affordable goods.

“The government’s efforts to tighten cross-border e-commerce regulations to protect local businesses and SMEs are understandable,” the MCA vice-president remarked.

“However, the government owes the public a clear explanation of whether these measures target illegal practices or restrict affordable goods at consumers’ expense.”

Low said protecting local businesses and safeguarding consumer rights were not mutually exclusive, adding that regulatory measures should not impose unnecessary costs on the public.

“If consumers are forced to pay more because of new regulations, will these measures genuinely promote fairness or simply increase the cost of living?” he asked.

He said platforms and sellers involved in counterfeit goods, tax evasion, unsafe products or other illegal activities should face investigation and enforcement action.

However, the government should identify specific violations and existing regulatory gaps rather than associating lower prices with wrongdoing.

Low also called for an assessment of existing tax and enforcement mechanisms, noting that Malaysia had imposed a 10% sales tax on qualifying imported low-value goods priced at RM500 or less since Jan 1, 2024.

He urged the government to explain what problems remained unresolved and why additional measures were necessary.

Local sellers’ concerns over platform commissions, advertising fees, logistics expenses and rising operating costs should also be considered, he said, as these expenses continued to squeeze profit margins and threaten the sustainability of SMEs.

With the government planning discussions involving e-commerce platforms including Shopee, Lazada, TikTok Shop and Grab, Low called for greater transparency in regulatory standards and implementation.

“All platforms, including Pinduoduo, ought to face clear, consistent and transparent rules without double standards,” he stressed.

Low said the government should ensure that regulatory requirements were applied consistently to domestic and overseas operators while maintaining consumer protection and fair competition.

“Protecting local businesses does not mean sacrificing consumers, just as safeguarding consumers does not mean tolerating illegal activities,” he continued.

“The government has to achieve both to build a fair, healthy and sustainable e-commerce ecosystem.

“What Malaysians want is fair competition, not higher prices imposed in the name of fairness.” ‒  Focus Malaysia