KPDN Eyes New Law to Strengthen E-Commerce Regulation in Malaysia

E-commerce has become a major part of daily life for Malaysians, shaping how we shop, do business, and even interact with brands. But as this digital marketplace grows, so do the risks — from online fraud to challenges in enforcing cross-border trade rules. Recognising these issues, the Ministry of Domestic Trade and Cost of Living (KPDN) is now pushing for a new, comprehensive law to govern the sector.

Aiming for an Innovative Yet Safe Digital Market

KPDN's deputy minister, Fuziah Salleh, emphasised that the goal isn't to stifle innovation, but to create an environment where e-commerce remains innovative, safe, transparent, and ethical. She noted that e-commerce isn't just a shopping convenience — it's a driving force behind Malaysia's digital economy. With millions of Malaysians now buying and selling online, the stakes for getting this right are higher than ever.

Why a New Law Is on the Table

The proposal stems from findings in the E-Commerce Legal Review Study, which highlighted the need for a robust legal framework that can keep pace with rapid technological change. Fraud, scams, and difficulties in enforcing rules across borders have exposed gaps in current regulations. A dedicated national-level law could help address these issues, offering stronger protection for both consumers and businesses.

Stakeholder Engagement and Industry Input

The proposal isn't being developed in isolation. KPDN recently held an E-Commerce Legislative Review Engagement Session involving representatives from major digital platforms, merchant associations, consumer advocacy groups, legal experts, and academics. The aim is to ensure that any new law reflects the realities of the market while balancing consumer protection with business growth.

Possible Connection to BNPL Oversight

Interestingly, this move comes just a month after the ministry called on Buy Now, Pay Later (BNPL) service providers to self-regulate. Some observers wonder if this new e-commerce legislation could be the "more comprehensive law" Fuziah hinted at back then — potentially bringing BNPL and other emerging digital services under a unified regulatory umbrella.