MRCA Proposes Stricter Cross-border E-commerce Policies In Budget 2027

KUALA LUMPUR, Sept 14 (Bernama) -- The Malaysia Retail Chain Association (MRCA) has proposed that the government implement stricter policies and equalise surcharges on cross-border e-commerce transactions, including the stricter enforcement of the sales tax on low-value goods (LVG), to secure national revenue.

The association said local brick-and-mortar retailers continue to face substantial compliance disparities compared to untaxed or under-taxed foreign e-commerce platforms offering ultra-low prices.

“This structural imbalance not only threatens local enterprises but results in significant tax base erosion for the nation,” MRCA said in a statement on its Budget 2027 wishlist today.

It also called for stringent regulatory controls to mitigate the proliferation of counterfeit and inferior goods on e-commerce platforms, thereby protecting consumer safety, preserving quality standards, and defending the intellectual property of legitimate brand owners.

It noted that Malaysian businesses are navigating an increasingly complex environment, contending with compounding operational costs and external competition.

The association requested that the government extend the RM1,000 domestic tourism tax relief through 2027 and expand its scope.

“Rather than limiting it to specific sectors, the relief should explicitly include hotel accommodations and targeted retail shopping expenditures to maximise the economic multiplier effect of domestic tourism,” it said.

MRCA also proposed targeted tax rebates or double tax deductions for commercial stakeholders investing in environmental, social and governance (ESG) operational upgrades, particularly regarding facility governance and public safety. 

Budget 2027 will be tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on Oct 9, 2026.

-- BERNAMA