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Malaysia plans licensing system for e-commerce operators

The proposal would cover overseas platforms serving Malaysian consumers and forms part of work on the E-Commerce Bill.

By Arif Rahman

Shopping cart beside a laptop displaying an online marketplace
Photo: New Straits Times

Malaysia plans to require e-commerce platform operators to obtain licences, with overseas operators serving Malaysian consumers also covered by the proposal, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said.

Armizan said in a statement that the proposal was discussed by a steering committee he chaired to develop the E-Commerce Bill. He said licensing was intended to make platforms more accountable, improve compliance with Malaysian law and make online commerce safer and more transparent.

The proposed rules would be refined with consideration for the powers of the ministries and agencies involved, as well as implementation requirements. Armizan said protecting local traders' ability to compete fairly was also a priority, with overseas platforms and sellers expected to meet appropriate obligations.

The bill has four main areas: safeguarding consumers; defining duties for marketplace operators, vendors and consumers; providing efficient ways to resolve disputes; and bringing the framework into line with international model laws.

Prime Minister Datuk Seri Anwar Ibrahim had announced the planned legislation while presenting Budget 2027 in the Dewan Rakyat, saying it would increase accountability for online sellers and platforms.

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