KUALA LUMPUR (Oct 13): E-commerce platforms should be legally required to consult sellers and provide advance notice of fee hikes as a sudden spike in charges could wipe out small businesses, said Syed Saddiq Syed Abdul Rahman (MUDA-Muar).
The former youth minister claimed that e-commerce platforms like Shopee and TikTok Shop had raised charges without adequate notice to sellers, and highlighted the combined burden coming from the commissions, transaction charges, per-order fees and campaign charges on businesses selling low-priced goods.
“At the bare minimum, any increase in charges or fees must be communicated well in advance, and there must be consultation,” Syed Saddiq said when debating Budget 2027 in the Dewan Rakyat on Tuesday.
His proposal follows Prime Minister Datuk Seri Anwar Ibrahim’s announcement when tabling Budget 2027 on Friday that an E-Commerce Bill would be introduced to regulate online marketplaces, especially platforms operating from abroad.
Syed Saddiq said sellers needed time to adjust prices and manage inventory before higher platform charges took effect.
“If you are a trader, you have already bought your stock and set the price for each unit. Suddenly, the platform charges rise sharply the next day, and you make a loss,” he said.
“But if I am informed 90 days or 60 days in advance, at least I can readjust my profit margin.”
Syed Saddiq also suggested that foreign platforms selling directly from overseas factories to establish a local presence and work with Malaysian businesses.
Local registration and offices would make it easier for authorities to enforce requirements and for consumers to seek redress over defective or unsafe products, Syed Saddiq said.
He said overseas manufacturers selling directly to Malaysians did not have to bear employment and other compliance costs faced by local firms.
Since 2024, Malaysia imposes a 10% sales tax on imported goods priced at RM500 or less in a bid to narrow the tax disparity with locally produced goods.
“Malaysian entrepreneurs are not asking for a crutch from the government. They are not asking for competition to be shut down. They only want fairness,” Syed Saddiq said.