The government is looking to strengthen e-commerce regulation in Malaysia amid growing concerns over the sale of prohibited goods, including drugs, through online platforms. Communications Minister Datuk Seri Fahmi Fadzil said his ministry is prepared to work with the Home Ministry, Domestic Trade and Cost of Living Ministry (KPDN), police, and other relevant agencies to address the issue.
Fahmi said there were still gaps in Malaysia’s e-commerce ecosystem, particularly because e-commerce platforms are currently not subject to licensing. He said this was an area that needed to be examined as part of efforts to improve oversight of online commerce.
“There are indeed gaps in the e-commerce system,” he told reporters during the Huawei WAIC Connect Malaysia 2026 Symposium yesterday. “At present, e-commerce is not yet licensed, so we need to look into this matter.”
The latest push for stronger oversight follows concerns over the online sale of drugs, including fentanyl and a substance referred to as “piu-piu”. Fahmi previously noted that the Malaysian Communications and Multimedia Commission (MCMC) had been instructed to meet with e-commerce platforms over the issue, adding that he had also received a message from Prime Minister Datuk Seri Anwar Ibrahim about the increasingly worrying problem.
Focus On Fake Accounts, Not Just Keywords
The minister also raised concerns over the ability of some platforms to prevent prohibited products from being sold through fake accounts. While most e-commerce platforms in Malaysia prohibit the sale of such products, including drugs such as fentanyl, Fahmi said one platform appeared to be too lax in allowing them to be offered.
He said the accounts involved could be fake accounts, adding that platforms needed to address how these accounts are created and used to sell prohibited goods. Simply removing search keywords could make the products harder to find, but would not resolve the underlying problem. Fahmi stressed that platforms should take steps to prevent fake accounts from being created for the purpose of selling drugs.
New E-Commerce Law In The Works
The latest concerns come as the government is already working on a new e-commerce law that is intended to replace the Electronic Commerce Act 2006. The proposed legislation is expected to strengthen accountability among platforms, sellers and other participants in the e-commerce ecosystem, as the existing law largely focuses on giving legal recognition to electronic transactions rather than comprehensively regulating online commerce.
KPDN previously said the new law was being drafted with input from the Attorney-General’s Chambers, Communications Ministry, MCMC and Digital Ministry. The government also expects the proposed e-Commerce Bill to be tabled during an upcoming parliamentary session, although specific obligations and enforcement powers have yet to be disclosed.
(Source: Bernama)
