E-COMMERCE platforms may soon be required to consult authorities before introducing or adjusting charges on sellers, as the government considers a formal mechanism to protect merchants from unexpected cost burdens.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said on Thursday (17 July) that while his ministry currently lacks direct regulatory authority over the e-commerce sector, steps are being taken to establish a framework that would require greater accountability from digital platforms operating in Malaysia.
“Some of these platforms not only impose additional fees in Malaysia, but also in other countries,” Armizan said at a press conference ahead of a town hall with industry stakeholders.
“To me, however, this decision (to impose additional charges) is not timely, as there was a review last year. Now there is another review regarding the commission fee,” he said.
“While it is difficult to stop this fully, we are looking at how we can get platforms to engage with the authorities before making these decisions.”
His remarks follow backlash over a recently introduced fee by a major platform that deducts a fixed amount from every completed order before the seller receives payment. The change, implemented without consultation, has sparked concern among sellers and advocacy groups.
On 11 July, MCA economic and SME affairs committee chairman Datuk Lawrence Low said the revised fee structure would affect nearly every aspect of a seller’s operation — from pricing and logistics to net income.
Low noted that although individual charges may appear minor, their cumulative effect would “place a significant financial strain on sellers and ultimately lead to higher prices for consumers”.
The government’s move to encourage earlier consultation could help balance digital innovation with fairer market practices, especially for micro, small and medium-sized enterprises that rely heavily on online platforms for their livelihoods. - July, 17, 2025
