The Malaysian government plans to finalise the drafting of a new e-commerce Bill this year, replacing the outdated Electronic Commerce Act 2006 with a stronger legal framework to govern online trade.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed the ministry had approved the policy decision to repeal the 2006 legislation, telling reporters that extensive engagement with stakeholders was needed before the Bill could be completed.
“We know that e-commerce is a broad and comprehensive area, so it requires extensive engagement with stakeholders. We need to examine the matter thoroughly, and I hope it can be finalised,” Malay Mail quoted Armizan as saying.
Armizan made the remarks after launching the 2026 Consumer Festival (Confest 2026) at Batu Kawan Stadium on 19 September.
The minister said two committees had been established to expedite the drafting process, including one to coordinate between his ministry, the Ministry of Communications and the Ministry of Digital. Matters currently being fine-tuned include the division of responsibilities among the ministries and relevant agencies, as well as regulatory mechanisms for e-commerce platforms.
The next stage would require a regulatory impact assessment (RIA) in collaboration with the Malaysia Productivity Corporation (MPC) before the Bill is submitted for further consideration, The Star reported.
Among the proposals under review is the introduction of a licensing regime for e-commerce platforms, particularly to address the influx of foreign goods, consumer safety and the sustainability of micro, small and medium enterprises (MSMEs). The existing Electronic Commerce Act 2006 only validated online transactions without clearly setting out legal responsibilities, leaving the Domestic Trade Ministry without a clear framework to regulate the sector.
Armizan stressed that regulation must be balanced against growth in the sector.
“We want more comprehensive and conducive regulation, but at the same time, we do not want to hamper the growth of e-commerce,” he said.
The government had previously signalled its intention to expedite the Bill. Prime Minister Datuk Seri Anwar Ibrahim in August said the government would move to improve facilitation and regulation of the sector, in line with the rapid growth of digital business. The Ministry of Communications and the Ministry of Digital are working alongside the Attorney-General’s Chambers to prepare drafting provisions.
The push for new legislation reflects the scale of Malaysia’s digital economy. E-commerce has grown rapidly since the pandemic, but the 2006 Act, drafted before the rise of social commerce and cross-border marketplaces, lacks provisions for platform accountability, data protection and consumer redress specific to online transactions.
Industry groups have called for clearer rules around platform liability, fake product listings and dispute resolution for online purchases. The proposed licensing regime could require platforms to meet minimum standards before operating in Malaysia, similar to approaches taken by other Southeast Asian nations tightening digital market regulation.
Armizan’s ministry oversees enforcement under the Price Control and Anti-Profiteering Act 2011 and the Consumer Protection Act 1999, but these were designed for traditional retail and do not adequately address digital commerce complaints. The new Bill would consolidate e-commerce regulation under a single, purpose-built statute.
