Foreign online platforms face Malaysian business registration requirement
A proposed e-commerce bill would strengthen oversight of online sellers, with platforms also required to ensure products meet local standards.
Overseas e-commerce platforms selling to Malaysian consumers would have to obtain local business registration, Finance Minister II Datuk Seri Amir Hamzah Azizan said. The government is reviewing laws and enforcement measures concerning foreign operators and the protection of local small and medium enterprises (SMEs).
Amir Hamzah told the Dewan Rakyat that proposed e-commerce legislation would be introduced at the next sitting. He said requiring registration was important for fair competition with Malaysian entrepreneurs. Platforms would also be responsible for product compliance with Malaysian rules and safety requirements, including Sirim certification.
The minister said the 10% sales tax applied to imported low-value goods helped bring their tax treatment closer to that of locally produced products. Online business earnings also attract income tax, while taxation of foreign service providers depends on payment types and relevant double taxation agreements, he said.
Separately, Amir Hamzah said targeted assistance for SMEs under economic pressure included restructuring or rescheduling loans and allowing payment deferments. He was addressing the Finance Ministry’s policy-level winding-up debate on the Supply Bill 2027 (Budget 2027).
Entrepreneurs in Sabah, including industrial-area operators, can seek financing under Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), he said. Applications go through 23 financial institutions and depend on each institution’s terms and credit assessment. He added that records put Sabah’s Amanah Ikhtiar Malaysia (AIM) participation at about 53,000, the highest among states.
