Business

Put sellers first, minister urges, as Malaysia mulls oversight on e-commerce platform fees

Armizan says platforms should consult authorities before introducing charges that impact SMEs and consumers

Updated 1 year ago · Published on 17 Jul 2025 4:52PM

Put sellers first, minister urges, as Malaysia mulls oversight on e-commerce platform fees
Minister’s 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 - July 17, 2025

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

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Business

Oil holds above US$82 as Trump demands cloud Strait of Hormuz reopening

Business

Appellate Court rejects Ricky Wong’s appeal, upholds RM169.2m asset freeze

Business

Port businesses badly hit by uncertainty over commingled oil tax – maritime expert

Business

Jobless numbers rise despite unemployment rate holding at 3% - DOSM