Minister seeks tiered e-commerce fees to ease small traders’ costs
Kuskop has received complaints over rising platform charges, while pricing transparency will feature in work on the new E-Commerce Bill.
E-commerce operators should introduce lower charges for smaller businesses rather than wait for regulation, Minister Steven Sim Chee Keong said on Nov 15. He proposed tiered fees and commissions to help micro and small entrepreneurs cope with increasing operating expenses.
Sim made the proposal in Bandar Perda following the launch of TikTok Shop Live Hub x Tekun. He asked TikTok to set an example by cutting commissions and to consider programmes giving new micro and small online businesses access to reduced rates.
According to Sim, many small sellers depend on homemade products that generate slim margins, leaving their earnings exposed to higher platform costs. He said the Ministry of Entrepreneur and Cooperative Development (Kuskop) had fielded numerous complaints about rising charges and feared that one operator’s increase could lead others to raise theirs.
On legislative measures, Sim said the new E-Commerce Bill would address transparency around platform pricing and charges. The Ministry of Domestic Trade and Cost of Living (KPDN) is drafting the bill, with input from Kuskop.
Sim also outlined Kuskop’s 3E strategy in response to competition from foreign platforms selling much cheaper products. Its measures span enforcement against operators breaching Malaysian laws, assistance for local entrepreneurs through financing and training, and policies and legislation governing the sector.
He said foreign platforms must also meet Malaysia’s tax obligations and product standards. These include Sirim requirements covering electrical goods, alongside requirements applicable to food products.
