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Malaysia's new e-commerce law to strengthen platform and seller oversight

Malaysia is preparing comprehensive legislation to replace its 17-year-old Electronic Commerce Act, with enhanced accountability measures for digital platforms and online merchants. The new framework aims to address gaps in current regulations governing the rapidly expanding e-commerce sector.

LSN Malaysia · 23 August 2026

The proposed e-commerce bill represents a significant update to Malaysia's digital commerce regulatory framework, according to officials overseeing the legislation. The new law is designed to modernise rules that have governed online transactions since 2006, establishing clearer responsibilities for both e-commerce platforms and individual sellers operating within their ecosystems.

Key provisions in the updated legislation focus on tightening accountability mechanisms across the digital marketplace. The framework seeks to establish more stringent obligations for platform operators in monitoring merchant activities and ensuring consumer protection standards are met. This includes enhanced requirements for dispute resolution, data protection, and transparency in online transactions.

The refresh of Malaysia's e-commerce regulations reflects the sector's substantial growth and evolving challenges. Current enforcement gaps have prompted policymakers to introduce more comprehensive measures addressing issues ranging from counterfeit goods to payment security. The new bill aims to create a more balanced regulatory environment that protects consumers while supporting legitimate business operations in the digital economy.

The legislation is expected to streamline compliance procedures for businesses while establishing clear penalties for violations. Industry stakeholders have been engaged in consultations regarding the proposed changes, with the framework designed to keep pace with regional and international e-commerce best practices.