New E-Commerce Act must protect local businesses from unfair competition

Malaysia's upcoming E-Commerce Act needs to prioritize the protection of micro, small, and medium enterprises (MSMEs) and local traders against unbalanced competition within the digital trade ecosystem, according to the Deputy Minister of Domestic Trade and Cost of Living, Datuk Dr. Fuziah Salleh.

While competitive pricing on e-commerce platforms benefits consumers, it should not lead to local businesses losing market share and their livelihoods. Fuziah emphasized that the rapid growth of digital trade, including cross-border transactions, necessitates a legal framework that promotes fairer market competition.

"First, we need to protect MSMEs and local traders. Competitive prices do benefit consumers, but we must ensure that unfair competition does not cause local traders to lose their market and livelihoods in the future," she stated. The act also aims to hold foreign sellers accountable to Malaysian consumers for issues like fraud or unsafe products, ensuring a clear level of responsibility and compliance.

Furthermore, the legislation will define the responsibilities of e-commerce platforms, which are increasingly influential in how products are marketed and delivered. The goal is to ensure that foreign investment and participation genuinely add value to Malaysia, bringing in investments, job opportunities, talent development, technology transfer, and integrating local enterprises into supply chains. Fuziah stressed the urgency of enacting the E-Commerce Act to close loopholes in the existing Electronic Commerce Act 2006, particularly concerning consumer protection in the complex digital and cross-border transaction environment.

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Competitive prices do benefit consumers, but we must ensure that unfair competition does not cause local traders to lose their market and livelihoods in the future.