KUSKOP Tightens Oversight Of Foreign e-Commerce Platforms To Protect Local MSMEs

KUALA LUMPUR, Oct 21 (Bernama) -- The Entrepreneur Development and Cooperatives Ministry (KUSKOP) is coordinating efforts to ensure fair competition by strengthening oversight of foreign e-commerce platforms and enhancing the competitiveness of micro, small and medium enterprises (MSMEs).

The ministry said the cross-ministerial and agency efforts involved the Ministry of Finance (MOF) and the Ministry of Domestic Trade and Cost of Living (KPDN), and covered fair competition, compliance with standards and product safety, taxation, and the regulatory framework for foreign e-commerce platforms.

“The issue was also raised by Prime Minister Datuk Seri Anwar Ibrahim during bilateral discussions with Chinese leaders in September 2026, with follow-up measures being refined to ensure that the interests of local MSMEs remain protected,” the ministry stated on the Parliament’s website.

It was responding to Datuk Seri Mohd Shafie Apdal (Warisan-Semporna), who asked about immediate mitigation measures to ensure the survival of local small traders and MSMEs threatened by an influx of ultra-cheap imported products sold directly by overseas factories to domestic consumers through e-commerce applications.

KUSKOP also said it had introduced interventions to help MSMEs build resilience and improve their competitiveness, including strengthening collaboration with Alibaba to help Malaysian MSME products reach wider markets.

Initiatives being explored include pilot programmes to list Malaysian MSME products on Tmall and Taobao for the Chinese market, as well as leveraging Daraz to reach South Asian markets.

In addition, SME Corp Malaysia signed a memorandum of understanding (MoU) with Lazada Malaysia on Oct 15, 2026, under the MSME Digital Export Initiative, covering digital export training, market matching, product listings and the promotion of Malaysian brands.

Bank Rakyat is also exploring strategic collaborations with Alibaba and Lazada to strengthen digitalisation, expand market access and enhance the competitiveness of local entrepreneurs, following a working visit to Shanghai on Sept 22, 2026.

“As an initial step, Bank Rakyat will identify between 30 and 50 potential entrepreneurs to participate in awareness sessions, training and mentoring with strategic partners, before selecting suitable participants for a pilot programme involving registration and marketing through e-commerce platforms,” the ministry said.

KUSKOP is also expanding the use of MyMall as a digital marketing channel to increase the visibility of local MSME and cooperative products.

“As of Oct 7, 2026, a total of 5,781 entrepreneurs had registered on MyMall, generating sales worth RM24.5 million,” it said.

Financing facilities are also available, such as under the TEKUN Online Financing Scheme (SPOT); RM4.7 million had been disbursed to 505 entrepreneurs as of August 2026 to support business expansion through e-commerce platforms.

-- BERNAMA