Malaysia Plans a New E-Commerce Law to Replace the Electronic Commerce Act 2006

KES COMPANY

3 days ago

3 min read

In brief: The Ministry of Domestic Trade and Cost of Living (KPDN) is drafting a new e-commerce law to replace the Electronic Commerce Act 2006, with clearer duties for online platforms and sellers, including foreign ones. In September 2026 the minister said the government aimed to finalise the drafting by the end of 2026. At the time of writing the bill has not been tabled in Parliament, so its details may still change.

This article is general information about Malaysian consumer and e-commerce law for online shoppers and sellers.

Why is a new law needed?

The Electronic Commerce Act 2006 mainly makes electronic transactions legally valid. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said in August 2026 that the 2006 Act does not clearly set out who is accountable for what, and that KPDN lacks a comprehensive legal framework to regulate e-commerce. Speaking in the Dewan Rakyat in June 2026, he also noted that KPDN's existing laws generally apply only within Malaysia, which makes it hard to act against overseas platforms and sellers.

Online shopping is already regulated. The Consumer Protection (Electronic Trade Transactions) Regulations 2024, in force since 25 December 2024, require online sellers to disclose details such as their business registration, contact information and full prices. Online marketplace operators must provide a complaints channel and keep records of their sellers for three years. Breaches are offences under the Consumer Protection Act 1999.

What could the new law include?

The government has not published a bill, but the minister and KPDN's study point to several themes:

duties on platforms to verify the identity of sellers, keep transaction records, remove unlawful listings and let users flag problem content;
requiring foreign platforms or sellers serving Malaysians to appoint a local representative or have a local presence;
tackling counterfeit goods and creating fairer competition for local small businesses;
easier dispute resolution, including proposals to let the Tribunal for Consumer Claims require platforms to disclose a seller's details; and
licensing requirements for e-commerce platforms.

On licensing, Deputy Communications Minister Teo Nie Ching said on 22 September 2026 that the MCMC already has power to license e-commerce platforms, but was waiting for KPDN and the Finance Ministry to set the terms and conditions.

When will it happen?

KPDN is drafting the bill with the Attorney General's Chambers, the Communications Ministry, the MCMC and the Digital Ministry. Once tabled, a bill must be passed by both the Dewan Rakyat and the Dewan Negara, receive Royal Assent, be published in the Gazette and then be brought into force. No date for any of these steps has been announced.

What does this mean for you?

For shoppers, your existing rights continue. If an online purchase goes wrong, start with the seller and the platform's complaints channel. You can also file a claim with the Tribunal for Consumer Claims, which hears consumer disputes of up to RM50,000 without lawyers and for a small filing fee.

For online sellers and platforms, it is sensible to review how you verify sellers, keep records and handle complaints, as these themes feature strongly in the proposals.

Frequently asked questions

Is there a new e-commerce law in Malaysia?

Not yet. The government has decided to replace the Electronic Commerce Act 2006 and is drafting a new law, but at the time of writing it has not been tabled in Parliament. Current rules, including the Consumer Protection (Electronic Trade Transactions) Regulations 2024, still apply.

Will online marketplaces be responsible for what their sellers sell?

The proposals would give platforms clearer duties, such as verifying sellers, keeping records and removing unlawful listings. How far platforms will be legally liable for sellers' products will depend on the final text of the bill.

What can I do now if an online seller cheats me?

Raise it with the seller and the platform's complaints channel first, and keep screenshots and receipts. If that fails, you may file a claim with the Tribunal for Consumer Claims for amounts up to RM50,000, where lawyers are not allowed to appear and the procedure is designed to be simple.

Sources and further reading

Last updated: 27 October 2026.

This article is published by Khaw Ewe Seng & Co., Advocates & Solicitors (Penang) for general information about Malaysian law. It is not legal advice, and it does not create a solicitor–client relationship. For advice on a specific matter, please consult a qualified lawyer.