KUALA LUMPUR – Current legislation regulating online financial transactions in the e-commerce business is inadequate to protect the interests of all stakeholders and consumers.
Citing data from the Statistics Department, Domestic Trade and Cost of Living Ministry’s Distributive Trade and Services Industry Secretariat director Muhamad Hanif Asa’ari said the e-commerce industry recorded about RM1 trillion in transactions in 2021, with the figure steadily growing to RM1.3 trillion as of 2023.
When met at the inaugural 2024 International Regulatory Conference (IRC), he told reporters that the growth in e-commerce trade meant consumers and businesses were moving to the digital sphere, hence the need for improved laws.
“As e-commerce trade increases, so do the complaints lodged by consumers.
“Over the past three years, there were about 14,000 complaints from buyers regarding online transactions.
“We have to look at our current laws to recognise our limitations, especially since the digital economy scene is rapidly advancing.”
He also said regulating business-to-business (B2B) transactions can aid in building trust between sellers and platform providers, enabling enterprises to further grow their businesses while providers benefit from increased consumer confidence.
Hanif said this when speaking as a panellist at the conference here today during a session on empowering digital markets and entrepreneurship in Asean.
The panel was moderated by the Malaysian Communications and Multimedia Commission (MCMC) chief strategic policy officer Mohamed Hafizin Che Mohamed Tajudin.
Joining Hanif as panellists were MCMC Universal Service Provision Division senior director Stella Jeevamani Navaratnam, Vietnam’s Authority of Broadcasting and Electronic Information official Nguyen Thi Thuy Duong, and U Mobile’s regulatory head Eric Liew Sze Yarn.
They also discussed, among others, fostering the growth of local businesses with broader implications of digital innovation and regulation in the Asean region.
Hanif said virtual platform providers should play their role in encouraging participation in e-commerce by proactively engaging small enterprises in rural areas.
“Based on data, parts of Sabah, Kelantan and Kedah have lower e-commerce adoption rates compared to other rural areas.
“It’s not really a matter of what products they can offer, but how they can access the technology, capabilities and know-how of e-commerce platforms.”
Noting that some major platform providers have such initiatives, Hanif expressed hope that continued collaboration could help small and micro enterprises in more remote areas grow their businesses online.
Organised by MCMC, the two-day IRC conference held at the St Regis Hotel here features international speakers who are here to share insights and engage in dialogues on regulatory frameworks and emerging technologies. – May 6, 2024