Malaysia’s new E-Commerce Bill: what online sellers and website owners need to know

Updated 28 October 2026 · 14 minute read

Quick answer: Malaysia is preparing a new E-Commerce Bill to replace the Electronic Commerce Act 2006. Prime Minister Anwar Ibrahim announced it in the Budget 2027 speech on 9 October 2026, and the Deputy Domestic Trade Minister said on 18 October that it will be tabled at the first sitting of Parliament in 2027, with March 2027 reported as the target. The bill is expected to set clear responsibilities for online marketplaces, sellers and buyers, strengthen consumer protection and dispute resolution, and may introduce licensing for e-commerce platforms, including foreign ones. The full text is not public yet. Online sellers do not need to wait for it: the Consumer Protection (Electronic Trade Transactions) Regulations 2024 already apply, and getting your website and records in order now is the best preparation.

The E-Commerce Bill at a glance

Why Malaysia needs a new e-commerce law

Malaysia’s main e-commerce law is almost 20 years old. The Electronic Commerce Act 2006 was written to make electronic transactions legally valid: it confirms that a contract made online counts. It says very little about who is responsible when something goes wrong.

Domestic Trade Minister Datuk Armizan Mohd Ali put it plainly in August: The Electronic Commerce Act is merely a legal framework to validate online and electronic commerce, but accountability is not clearly outlined in the legislation. His deputy, Datuk Dr Fuziah Salleh, added in October that Malaysia currently has no specific legislation governing e-commerce, so the ministry often ends up mediating between online sellers and marketplaces itself.

Several problems pushed the government to act in 2026:

• Complaints about products bought online. MCMC reported 1,964 complaints between 1 January 2025 and 25 August 2026 about products sold on e-commerce platforms, including unsafe electrical goods, false halal claims and scams.
• Competition from cheap foreign platforms. Local retailers and SMEs raised concerns about very low-priced goods sold by cross-border platforms that do not follow the same rules or pay the same costs.
• Unclear responsibility. When a buyer is cheated, it is often unclear whether the seller, the platform or the payment provider is responsible.
• Limited enforcement powers. The minister said KPDN lacks the authority and a complete legal framework to regulate the sector.

In the Budget 2027 speech, Anwar said the government takes seriously the concerns of small traders over the presence of foreign e-commerce companies and would review legal and enforcement measures to protect local MSMEs from unfair competition and to make sure goods bought by Malaysians are safe.

Timeline: how the bill developed

What the bill is expected to cover

Based on statements from KPDN and the Budget 2027 announcement, the bill is built around four areas:

1. Consumer protection

Clearer rights for people who buy online, including safer products and better information before they pay. The government has linked this directly to product safety and to complaints about goods that do not meet Malaysian standards.

2. Clear duties for platforms, sellers and consumers

The law is expected to spell out what online marketplace operators, online sellers and consumers are each responsible for. This is the gap the minister said the 2006 Act left open.

3. Faster dispute resolution

Efficient ways to settle disputes between buyers, sellers and platforms. KPDN has previously proposed an integrated online dispute resolution (ODR) platform for e-commerce.

4. Alignment with international model laws

Bringing Malaysian rules in line with international standards for electronic commerce, which matters for cross-border trade.

Platform licensing and foreign sellers

On top of the four areas, the government is considering a licensing regime for e-commerce platforms, including platforms based overseas that serve Malaysian consumers. It has also said it is studying options such as requiring authorised local representatives for foreign sellers, rather than forcing every foreign seller to register a company here.

What industry groups are asking for

The Malaysia Retail Chain Association has asked the government to clearly define the liabilities of platforms and merchants, tighten oversight of non-compliant goods, strengthen seller verification and dispute resolution, and enforce tax transparency so cross-border sellers compete on equal terms. As MRCA president Datuk Liew Bin said: We welcome competition, but it must be fair.

What is not known yet

The bill has not been published, so be careful with any article, video or seminar that claims to know the exact rules. As of 28 October 2026, these points are still open:

• Whether the law applies to every business with its own online store, or mainly to marketplaces and large platforms.
• What exactly sellers will have to verify or disclose, and how.
• Whether there will be a size threshold for licensing platforms.
• The level of fines and penalties.
• How long businesses will have to comply after the law is passed.

We will update this article when the bill is tabled.

The rules that already apply to online sellers today

While the new bill is being written, online sellers are already covered by the Consumer Protection (Electronic Trade Transactions) Regulations 2024, which came into force on 25 December 2024 and replaced the 2012 version. Many sellers have never checked their website against them.

Information you must show

Under the 2024 Regulations, an online supplier must disclose:

1. The name of the seller or business
2. The website address, if any
3. An email address and phone number
4. A description of the goods or services
5. The full price, including all costs such as delivery
6. The accepted payment methods
7. The terms and conditions of sale
8. The estimated delivery time
9. Certification to Malaysian safety or health standards, where the product requires it

Rules for the ordering process

• Buyers must be able to correct mistakes in their order.
• You must acknowledge every order without undue delay, for example with an automatic confirmation email or message.
• If goods arrive faulty or materially different from what was described, the seller bears the cost of delivering the correct item.
• Services must be provided to a reasonable standard and be fit for their purpose.

Language

The 2024 Regulations require the mandatory information to be in Bahasa Malaysia, with other languages allowed in addition. Law firm Skrine reported in 2025 that enforcement of the national language requirement has been paused, so check the current position with KPDN, but having a Malay version of your key information is a safe step either way.

Marketplaces have extra duties

Platform operators must make sure sellers provide the required information before a sale can go through, provide a channel for buyer complaints and make sure seller advertisements follow the rules. This is why marketplaces regularly ask sellers to update their details.

Other laws that already matter

• Personal Data Protection Act 2010 (amended 2024): if your website collects names, phone numbers or addresses, you need a clear privacy notice and must protect that data. See our privacy policy for an example of what one covers.
• LHDN e-invoicing: depending on your turnover, sales may need e-invoices through MyInvois.
• Product rules: some goods, such as electrical products, cosmetics, supplements and halal-labelled food, need approvals before they can be sold, online or offline.

What it could mean for different businesses

If you sell on Shopee, Lazada or TikTok Shop

Expect stricter seller verification: more requests for business registration, identity documents and product certificates, and more listings removed if details are missing. Platforms carry more responsibility under the new law, so they are likely to pass more checks down to sellers. Keep your registration documents, product approvals and invoices ready.

If you sell through your own website

Your website is your shop window and your legal record. Expect the same direction of travel: clear seller identity, honest pricing, a working complaints channel and proper order records. A website that already shows all the information required by the 2024 Regulations will be in a strong position whatever the final law says.

If you sell services or take bookings online

Clinics, salons, tuition centres, contractors and other service businesses that take deposits or bookings online are part of electronic trade too. Clear terms, prices, cancellation rules and a booking confirmation matter here as much as they do for products.

If you are a buyer

The bill aims to give you clearer seller information, safer products and an easier way to resolve disputes. Until then, buying from sellers who show their full business details is the simplest protection.

A 10-step checklist to prepare now

None of these steps depends on the final text of the bill, and all of them help you comply with the rules that already exist:

1. Show your business identity. Registered business name, SSM number, business address, email and phone on your website, normally in the footer and on the contact page.
2. Show the full price. Include delivery fees and any extra charges before the customer pays. No surprises at checkout.
3. Publish clear terms. Payment methods, delivery times, returns, refunds and cancellations, written in plain language.
4. Add Bahasa Malaysia. At least the key seller information and terms, alongside English or Chinese.
5. Confirm every order automatically. An order confirmation by email or WhatsApp with what was bought, the price and the expected delivery date.
6. Let customers fix mistakes. A review step before payment and an easy way to contact you after.
7. Keep product approvals on file. SIRIM, NPRA, halal or other certificates for the products that need them, and show them where required.
8. Keep proper records. Orders, invoices, delivery proof and customer messages, stored safely for at least several years.
9. Offer a complaints channel. A visible contact form, email or WhatsApp number for problems, and reply promptly.
10. Protect customer data. HTTPS on every page, a privacy notice, and only collect the details you actually need.

Why your own website matters more after this law

When platforms face stricter rules, they become stricter with sellers: more checks, more paperwork and the risk of a store being suspended while documents are reviewed. A business that sells only on one marketplace depends completely on that platform’s rules.

Your own website is different. You control the information you show, the records you keep and the relationship with your customers. It is also where customers check that you are a real business before they buy on a marketplace or WhatsApp. A professional website with your full business details, clear prices and proper terms builds that trust and makes compliance easier, whatever the final E-Commerce Act says.

We build online stores for Malaysian businesses with the seller information, terms pages, order confirmations and HTTPS already in place. See our e-commerce website design service or the website prices page.

Please note: this article is general information based on public statements up to 28 October 2026. It is not legal advice. For decisions about your own business, check the official text of the law and regulations with KPDN or a lawyer.

Want to check your online store before the new law arrives? Send us your website on WhatsApp and we will tell you what is missing.

Frequently asked questions

What is the E-Commerce Bill in Malaysia?

It is a proposed new law that will replace the Electronic Commerce Act 2006. It is expected to set clear responsibilities for online marketplaces, sellers and consumers, strengthen consumer protection and dispute resolution, and may introduce licensing for e-commerce platforms, including foreign ones.

When will the E-Commerce Bill be tabled?

The Deputy Domestic Trade Minister said on 18 October 2026 that it will be tabled at the first sitting of Parliament in 2027, with March 2027 reported as the target. The draft was still being refined at the time.

Does the E-Commerce Bill apply to businesses with their own website?

The text is not public yet, so this is not confirmed. Online sellers, including those with their own website, are already covered by the Consumer Protection (Electronic Trade Transactions) Regulations 2024, which require clear seller information, prices and terms.

What information must an online seller in Malaysia show on their website?

Under the 2024 Regulations: the seller or business name, website address, email and phone, a description of the goods or services, the full price including all costs, payment methods, terms and conditions, estimated delivery time and safety or health certification where required.

Will foreign e-commerce platforms need a licence in Malaysia?

The government is considering a licensing regime for e-commerce platform operators, including overseas platforms serving Malaysian consumers. It was discussed by the bill’s steering committee in October 2026 but is not final.

What should online sellers do before the new law is passed?

Show full business details, all-in prices and clear terms on your website, add Bahasa Malaysia for key information, confirm every order, keep product approvals and transaction records, offer a complaints channel and protect customer data.

Sources

• The Star: Budget 2027, govt proposes E-Commerce Bill (9 Oct 2026)
• Bernama: Gov’t proposes licensing regime for e-commerce platforms (14 Oct 2026)
• NST: E-Commerce Bill set for first parliamentary sitting next year (19 Oct 2026)
• NST: New e-commerce law to tighten platform, seller accountability (22 Aug 2026)
• Bernama: MRCA statement on the E-Commerce Bill (15 Oct 2026)
• The Star: New E-commerce Bill expected to be finalised this year (19 Sep 2026)
• The Edge Malaysia: SME and retail groups on the e-commerce law (2 Oct 2026)
• Bernama: KPDN proposes integrated ODR platform for e-commerce reform
• Bernama: MCMC, e-commerce platforms coordinate measures to strengthen consumer protection (Oct 2026)
• The Star: Crackdown on e-commerce sites (27 Aug 2026)
• Skrine: Updated regulations for e-commerce platforms (June 2025)

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