THE Malaysian Competition Commission (MyCC), operating under the Ministry of Domestic Trade and Cost of Living (KPDN), today formally unveiled its Market Study of the Digital Economy Ecosystem under the Competition Act 2010 (Act 712).
Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali said the study aligns with the ministry’s mandate to foster a sustainable and progressive domestic trade ecosystem, safeguard fair and healthy market practices, and protect consumer interests.
“This study is vital to assess market structures and business practices within the digital economy, which may impact competition, consumer choice, pricing, and taxation in Malaysia,” he said in a statement today.
Commencing in July 2024 and running for 18 months, the study focuses on four key sectors: mobile operating systems and payment services, retail e-commerce marketplaces, digital advertising services, and online travel agencies (OTAs).
The research also examines privacy and data protection concerns across all four areas.
Preliminary findings indicate that certain digital platform practices may hinder fair competition, potentially affecting living costs for the public and the competitiveness of local businesses, particularly micro, small, and medium enterprises (MSMEs).
Identified issues include high commission structures, restrictive contract terms, limited transparency in pricing mechanisms, and control over consumer data.
To address these challenges, MyCC recommends establishing a dedicated digital economy market task force under a whole-of-government approach, enabling more effective oversight and regulation.
The study also highlights the need for enforcement actions under the Competition Act 2010 targeting online travel agencies, to be carried out in collaboration with the Ministry of Tourism, Arts and Culture and the Malaysian Communications and Multimedia Commission.
The study further underscores the need for improvements in digital taxation to ensure platforms contribute fairly to national development.
Data on Service Tax on Digital Services (SToDS) revealed revenue of RM1.62 billion in 2024, up from RM802 million in 2021, but the report notes a significant potential annual tax contribution gap due to differing rates between digital platforms and local businesses.
Overall, MyCC presented 18 comprehensive policy recommendations covering regulatory strengthening, greater data transparency and access, and strategic initiatives to protect consumers and MSMEs within the digital ecosystem.
The launch, attended by approximately 300 representatives from government ministries and agencies, industry players, consumer organisations, and academic institutions, took place at PARKROYAL Collection Kuala Lumpur.
The commission also stressed that these recommendations provide a roadmap for stakeholders, including policymakers and implementers, to act swiftly in promoting a digital economy that is fair, inclusive, and beneficial to the nation and its citizens. - February 10, 2026
