Retail association urges stricter rules on cross-border e-commerce in 2027 budget
The Malaysia Retail Chain Association has asked the government to tighten taxes and regulations on overseas online sales and to extend domestic tourism tax relief through 2027.
The Malaysia Retail Chain Association submitted a set of recommendations for the upcoming Budget 2027, urging the authorities to impose stricter tax collection on low-value imported goods sold through foreign e-commerce sites and to harmonise surcharges with those faced by domestic retailers. The association argued that the existing disparity gives overseas platforms an unfair price advantage and reduces Malaysia's tax revenue.
It also called for tighter regulation to stop counterfeit and substandard products from reaching consumers, protecting both safety and brand rights. The MRCA asked that the RM1,000 domestic tourism tax relief be prolonged to 2027 and broadened to explicitly include hotel stays and targeted retail purchases. Finally, it suggested targeted tax rebates or double deductions for firms that upgrade facilities to meet ESG standards, especially in governance and public safety. The budget will be presented by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on October 9, 2026.
Why it matters
The proposals aim to level the playing field for local retailers and protect Malaysia's tax revenue and consumer safety.
How the sides frame it
MODERATE AGREEMENTCenter coverage emphasizes the retail association’s call for stricter taxes and regulation of low-value imports to protect revenue and consumer safety, while right-leaning coverage stresses the business chamber’s push for lower costs, clearer regulations and a possible GST re-introduction.
CENTER
Highlights the need for tougher tax collection on low-value e-commerce imports and tighter rules to curb counterfeit goods, framing the issue as a fairness and revenue problem.
RIGHT
Frames the budget request as a way to cut business costs, reduce regulatory uncertainty, and consider reinstating GST to ease supply-chain pressures.
The right emphasises
- highlights higher compliance, utility and operating expenses straining businesses
- advocates re-introducing GST to lessen supply-chain cost pressures
- urges clearer timelines, service-level agreements and action against illicit alcohol and tobacco trade
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