Malaysia Moves to Tighten E-Commerce Rules

KUALA LUMPUR — Malaysia will take immediate steps to strengthen oversight of e-commerce platforms, including a possible registration requirement, after receiving thousands of complaints from consumers and merchants, Communications Minister Fahmi Fadzil said on Aug. 26.

Prime Minister Anwar Ibrahim directed the Communications and Finance ministries to examine measures addressing platforms that operate in Malaysia without registering locally. The proposed framework could also cover tax compliance, product safety and halal certification requirements

Malaysia’s Communications and Multimedia Commission has recorded 1,964 complaints involving e-commerce platforms since Jan. 1, 2025. The complaints include online scams, faulty or uncertified electrical and electronic products, and concerns over the halal status of goods sold through digital marketplaces.

“We will take action starting today,” Fahmi said after a Cabinet meeting, without identifying specific platforms or detailing the enforcement process. Officials are expected to consult e-commerce companies before implementing the new measures.

Shopee, TikTok Shop and Lazada are among Malaysia’s most widely used online shopping platforms. The government has also introduced restrictions on teenagers’ access to social media services as part of broader efforts to strengthen digital regulation.

The move comes as Malaysian retailers and online merchants call for stricter oversight of foreign-based platforms, arguing that uneven regulatory obligations could disadvantage local businesses.