A GROWING number of countries are embedding consumer protection within national policy frameworks, with global studies suggesting that around 52 per cent of nations have dedicated consumer-related policies within broader national development strategies, while far fewer incorporate them into overarching master plans.
Analysts note that most governments still prioritise consumer protection through dedicated legal frameworks rather than placing it centrally within national economic blueprints.
In high-income countries, about 77 per cent are reported to have structured consumer protection systems, while the figure rises to around 90 per cent among middle-income economies.
National Consumer Advisory Council Chairman Khair Ngadiron told Berita Harian that experts say many countries are now revising and expanding their consumer laws to reflect rapidly evolving digital and technological landscapes, particularly the rise of artificial intelligence and data-driven commerce.
A study by Salsify highlights emerging consumer trends, noting increasing reliance on AI in purchasing decisions.
While trust gaps in AI remain, global e-commerce activity is projected to grow significantly, with forecasts suggesting expansion of more than 20 per cent in 2026.
The report warns that while AI and algorithm-driven systems improve efficiency and speed in transactions, they also introduce new risks, particularly in pricing transparency and accountability.
“Algorithms, according to many studies, exhibit opacity and a lack of clarity in determining prices and related processes,” the analysis notes, raising concerns over fairness and visibility in digital markets.
These concerns are echoed by findings from the Malaysia Competition Commission (MyCC), which recently highlighted structural issues within the digital economy ecosystem, including algorithmic opacity and market concentration risks.
Global data from the United Nations Conference on Trade and Development, or UNCTAD, shows that more than 80 per cent of countries now have at least one form of e-commerce-related legislation, covering areas such as consumer protection, electronic transactions and data privacy.
It also notes that 72 countries have introduced more than 1,000 policy initiatives and legal frameworks related to artificial intelligence.
In Malaysia, recent years have seen significant legislative movement to strengthen consumer protection architecture.
The introduction of the Consumer Credit Act 2025, which comes into force on 1 March 2026, is aimed at regulating non-bank credit providers and addressing concerns over “Buy Now Pay Later” schemes.
The reforms, led by the Ministry of Domestic Trade and Cost of Living (KPDN) in collaboration with Bank Negara Malaysia, also include amendments to the Hire Purchase Act, replacing the Rule of 78 interest calculation method with an effective interest rate model.
Lawmakers have broadly supported these changes in both the Dewan Rakyat and Dewan Negara, signalling bipartisan backing for stronger consumer safeguards.
Further legal reforms are expected this year, including a review of so-called “Lemon Law” provisions and the e-commerce regulatory framework.
These are expected to strengthen consumer rights in cases involving defective goods, particularly vehicles, and clarify responsibilities of digital platform providers.
Observers note that whether through new legislation or amendments to existing laws, the central priority remains ensuring that consumers clearly understand their rights and are adequately protected.
The commentary argues that consumer governance must evolve in step with technological change and economic complexity, particularly as digital transactions become more dominant in everyday life.
At the same time, consumers are being urged to become more vigilant amid ongoing global energy pressures and economic uncertainty.
While current conditions are not as severe as the COVID-19 period, they are still reshaping consumption patterns and household resilience.
Consumer rights relating to essential goods, safety, information, choice, redress, education and a healthy environment remain intact, but experts stress that these must be balanced with greater individual responsibility.
Consumers are encouraged to verify information carefully and rely on factual data when making purchasing decisions, particularly in an environment increasingly influenced by digital platforms and automated systems.
The Malaysian government is also moving to strengthen its national consumer policy framework through an updated National Consumer Policy, or DPN 2.0, in line with broader economic reforms under the MADANI Economy framework.
The approach emphasises shared responsibility between government, industry and civil society in building a more resilient consumer ecosystem capable of withstanding global shocks.
Ultimately, analysts say the current environment presents an opportunity to reinforce consumer awareness, strengthen regulatory clarity and ensure that protection frameworks keep pace with technological and economic transformation. - April 21, 2026
The observations reflect Khair Ngadiron's personal insights and do not necessarily represent the official stance of The Vibes.com
