KUALA LUMPUR (Oct 2): The SME Association of Malaysia (SMEAM) and Malaysia Retail Chain Association (MRCA) have stressed the need for stronger enforcement of e-commerce and product regulations as the government prepares to revise the country’s e-commerce law, amid concerns over the influx of low-priced products through online cross-border e-commerce platforms.
SMEAM national president Dr Chin Chee Seong said enforcement is particularly important to ensure local businesses and foreign platforms operate on a level playing field, while also protecting consumers from products that may not meet Malaysian safety requirements.
“We are not stopping them from coming. We are not against them coming in. But we are just saying this is the situation that we face. What can you do? I think one of the very important key things is our enforcement,” he said at a press conference held by the two associations on Friday.
Chin said enforcement should cover not only the entry of products but also on how complaints are handled, with businesses needing a clear channel to report potentially non-compliant products and receive a response.
His comments come as local retailers face increasing competition from foreign e-commerce platforms selling directly to Malaysian consumers. The SMEAM has said it does not oppose the entry of such platforms, but wants domestic businesses to compete under comparable regulatory requirements.
MRCA president Datuk Liew Bin said one measure that could improve enforcement would be to require foreign platforms to register locally.
“What we propose to the government is to force them to register here. So, when we force them to register, we can regulate them,” said Liew.
The SMEAM said it has so far not been consulted by the relevant authorities on the proposed changes to the e-commerce law.
“So, we still don't know what is coming up on there, and there's no discussion with us,” Chin said when asked whether the SMEAM had been involved in discussions with the government.
The government is currently working on a new e-commerce bill to replace the Electronic Commerce Act 2006. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said on Sept 19 that the government aims to finalise the bill this year, with engagement planned with e-commerce platforms, service providers and industry players.
The Malaysian Communications and Multimedia Commission, meanwhile, has said that regulatory measures, including registration requirements for e-commerce platforms, are being considered.
Associations flag exploitation of Malaysia-China visa-free entry requirements
On a separate matter, Liew said the 90-day visa-free entry for Chinese nationals should be cancelled, saying some foreigners were using the arrangement to enter Malaysia and operate businesses.
He said enforcement is crucial, citing instances brought to his attention of Chinese nationals allegedly operating businesses without the necessary licences or permits.
Liew said the MRCA would conduct a survey to better understand the extent of the issue among its members and suggested the setting up of a government hotline or other accessible channel for businesses to report suspected illegal operators.