By Dennis Tan · September 2026
Online sellers increasingly sit under the same consumer-protection expectations as physical shops.
What the Ministry Has Actually Said
On 19 September 2026, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government aims to finalise the drafting of a new e-commerce Bill this year, replacing the Electronic Commerce Act 2006 with a more comprehensive framework. Speaking at Batu Kawan in Penang, he confirmed his ministry has approved the policy decision to repeal the 2006 Act, but stressed that drafting requires cross-ministerial coordination and engagement with platforms, service providers and industry leaders.
Two dedicated committees have been established to streamline coordination between the Domestic Trade and Cost of Living Ministry, the Ministry of Communications and the Ministry of Digital. Before the Bill progresses, the ministry will carry out a Regulatory Impact Assessment with the Malaysia Productivity Corporation.
The balance the ministry is trying to strike was set out by Armizan himself: "We want more comprehensive and conducive regulation, but at the same time, we do not want to hamper the growth of e-commerce." One commentary on the proposal summed that up as regulation with guardrails without shackles — which is a reasonable description of the intent, and a warning that the detail has not been written yet.
Why the Bill Is Being Written
The 2006 Act, Armizan has said, "is merely a legal framework to validate online and electronic commerce, but the aspect of accountability is not clearly outlined." The complaint data explains the push: the ministry recorded 38,503 complaints related to online transactions between 2023 and 11 June 2026, and blocked 412 websites between 1 January and 31 May 2026 for offences that included the sale of counterfeit goods.
The sharper problem is cross-border. Foreign sellers are not currently required to register a business entity in Malaysia, and the ministry's existing laws are territorial, which limits direct enforcement. According to statements in Parliament in June 2026, the government is studying mechanisms to require overseas entities to comply with Malaysian law, to appoint authorised local representatives, and to extend the law's extraterritorial application where appropriate. The Malaysia Competition Commission says it has recorded no predatory pricing cases involving foreign sellers in e-commerce so far, but it continues to monitor conduct under the Competition Act 2010.
Discount-driven selling is exactly the arena where local sellers say the rules are uneven.
What It Would Mean for Your Shop
The proposal under review that matters most to small sellers is a licensing regime for e-commerce platforms. It is being considered to address consumer safety, manage the influx of foreign goods, and safeguard the sustainability of micro, small and medium enterprises — meaning platforms would carry duties that today sit loosely with sellers.
| Area | What is on the table | What it means for an SME seller |
|---|---|---|
| Platform obligations | A licensing regime for platforms and stronger platform accountability | More document checks at onboarding, and faster takedown of problem listings |
| Seller accountability | Clearer legal responsibility for sellers, not only platforms | Your registration, contact details and product claims become easier to trace and act on |
| Consumer protection and disputes | Better handling of complaints, counterfeits, refunds and returns | Dispute handling may move beyond platform chat to a regulator |
| Cross-border fairness | Local representatives and extraterritorial reach for foreign sellers | The stated aim is a fairer field for locally registered businesses |
| Data and delivery | Data handling and delivery standards inside a wider framework | Clear delivery promises become compliance, not marketing |
A Preparation Checklist You Can Start Today
1. Confirm your business registration. Selling online for profit already requires registration with the Companies Commission of Malaysia under the Registration of Businesses Act 1956 for Peninsular Malaysia and the Federal Territories, or incorporation under the Companies Act 2016. Carrying on business without registering can draw a fine of up to RM50,000, up to two years' imprisonment, or both. Signing up on a marketplace does not satisfy this requirement.
2. Fix every listing, not just your storefront. Under the Consumer Protection (Electronic Trade Transactions) Regulations, sellers must disclose their name or business name, their registration number where applicable, contact details, terms and conditions, and a dispute-resolution channel. Walk your catalogue and check each one.
3. Write down your warranty and returns policy. Publish it, and make sure what your customer service team actually does matches what the page promises. Under a stricter accountability regime, an unwritten policy is the easiest thing for a complaint to break.
4. Keep clean order records. Invoice, order ID, payment confirmation, delivery proof and the support conversation. Complaints rarely arrive the same week as the order.
5. Re-read your platform agreements. If platforms become licensed, their compliance obligations will cascade into seller terms. Knowing your current terms tells you what will change.
6. Review product claims. Health, safety, halal and electrical claims carry separate rules from other agencies, and they apply regardless of what a marketplace permits.
7. Choose your platforms deliberately. If platform registration and licensing tighten, a platform's compliance record becomes part of your commercial risk.
Payments, refunds and order records are where most consumer disputes begin.
What Is Still Undecided
There is no Bill number and no tabling date. Armizan has said he hopes it can be finalised this year, and the Regulatory Impact Assessment may still reshape the proposals. Platform licensing is being examined, not announced. Treat any specific requirement you see circulated online as a proposal until Parliament passes it — and prepare for the direction of travel rather than for a clause list that does not exist yet.
A package being handed over for delivery — the last mile where e-commerce disputes often begin. Photo: Meanwell Packaging / Wikimedia Commons (CC BY 2.0).
Conclusion
Malaysia's e-commerce law is being rewritten for the first time in two decades, and the direction is clear: platforms will carry more defined duties, sellers will be expected to be identifiable and accountable, and cross-border trading will come under closer scrutiny. For most Malaysian SME sellers, that is a compliance exercise rather than a business model change — registration, honest listings, published terms, kept records.
The most useful thing you can do this quarter is audit the basics: SSM registration, disclosure on every listing, a written returns policy and a filing habit that survives a complaint six months later. Businesses that already operate that way have nothing to fear from most of what is on the table.
Watch for the Regulatory Impact Assessment and the Bill's first reading, and treat everything before that as a draft.
Frequently Asked Questions
Is the new e-commerce Bill already law?
No. As of September 2026 the ministry is still drafting it. The policy decision to repeal the Electronic Commerce Act 2006 has been approved within the ministry, but the Bill has not been tabled, and a Regulatory Impact Assessment with the Malaysia Productivity Corporation is still to come.
Do I already need to register my online business with SSM?
Yes. Anyone carrying on business for profit in Malaysia, including through a marketplace such as Shopee or Lazada, must register under the Registration of Businesses Act 1956 or the Companies Act 2016. Operating without registration is an offence carrying a fine of up to RM50,000, up to two years' imprisonment, or both.
Will I need a licence to sell online?
Not as currently proposed. The licensing regime under review applies to e-commerce platforms rather than to individual sellers. Your obligations as a seller would continue to come from business registration, consumer protection rules and platform terms.
What should I fix first if I only have a week?
Business registration and listing disclosures. Both are already mandatory, both are cheap to correct, and both are the first things a regulator or a platform compliance check looks at.
Dennis Tan writes about e-commerce, marketplaces and logistics for SMEBuddies, with a focus on how platform rules and delivery economics affect small Malaysian sellers. He has spent his career in online retail operations and marketplace management, working with brands that sell across multiple channels. He tracks regulatory changes in digital trade and translates them into practical steps for business owners. His articles for SMEBuddies cover selling strategy, fulfilment costs and the compliance work that sits behind a working online store.
Malaysia's New E-Commerce Bill Is Coming This Year: What Online Sellers Must Prepare For