Lawmakers urge rules on foreign e-commerce sellers to protect Malaysian retailers

In a policy-stage discussion on the 2027 Budget, Syed Saddiq argued that overseas manufacturers using e-commerce platforms can sell low-priced goods to Malaysian consumers without bearing the same tax and labour costs as local firms, creating an uneven playing field. He noted that Malaysian entrepreneurs are not seeking protectionism but fairness, urging that foreign e-commerce players be required to establish a local base or collaborate with domestic businesses.

Such measures, he said, would also help authorities act against defective or unsafe products. Saddiq pressed the government to accelerate pending e-commerce legislation that would mandate advance notice of fee changes and consultation with affected sellers. He pointed to recent commission increases by TikTok and Shopee, which he described as sudden and harmful to small enterprises operating on thin margins. The MP warned that without intervention, more local shops could close despite broader economic improvements.