KUALA LUMPUR (Oct 28): The government will impose e-invoicing requirements on foreign online commerce platforms as part of efforts to strengthen oversight of their operations in Malaysia.

The measure, to be implemented by the Finance Ministry, is among the immediate steps to monitor platforms such as Pinduoduo and Temu, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said when winding up the Budget 2027 debate in the Dewan Rakyat on Wednesday.

The e-invoicing requirement will also require these platforms and their related vendors to establish offices in Malaysia to facilitate monitoring, he said.

Foreign e-commerce platforms are also currently subject to a 10% low-value goods tax. Such platforms have come under increasing scrutiny as Pinduoduo gains traction among Malaysian consumers through their low-priced products.

Local retailers, meanwhile, have raised concerns about foreign competition amid differences in regulatory, taxation and compliance requirements. The government also plans to table a bill to regulate foreign platforms operating in Malaysia during the first parliamentary sitting in 2027.

On Wednesday, Armizan said the proposed legislation would include a consultation mechanism requiring platforms to engage with sellers and the ministry before implementing changes, with the aim of ensuring greater transparency and fairness.

The bill would also cover consumer protection, the responsibilities of online marketplace operators, sellers and consumers, dispute resolution, and alignment with international best practices to support cross-border trade, he noted.

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