KUALA LUMPUR: The government should require foreign e-commerce platforms such as Temu and Pinduoduo to set up offices in the country to protect local businesses, an opposition MP said.
Mas Ermieyati Samsudin (PN-Masjid Tanah) said platforms with sales above a certain amount should be required to register a company in the country, open an office, and appoint local customer service representatives.
The Public Accounts Committee chairman said Chinese platforms selling goods directly from factories had an unfair advantage over local retailers, who had to pay rent, wages, and taxes.
“If this trend is left unchecked, our small manufacturers and local retailers will suffer,” she said when debating the 2027 budget in the Dewan Rakyat today.
She said a notebook she bought on Pinduoduo cost just RM2.60, compared with about RM12 at Mr DIY.
Mas Ermieyati also called for a review of the 10% sales tax on low-value imported goods costing less than RM500, and stricter safety checks on products shipped directly from abroad.
She said platforms such as Shopee, TikTok Shop, and Lazada had invested in local offices, warehouses and workers despite their high charges.
She said commissions and transaction fees of up to 20% were hurting small traders, particularly those just starting their businesses.
Mas Ermieyati also proposed encouraging traders to sell directly through Facebook and Instagram, saying “the solution is right in front of us”.
She said traders could avoid paying commissions to shopping platforms, with only basic payment processing charges of around 1%.
To protect buyers, she proposed a national DuitNow escrow service developed with PayNet, under which payments would be held by a third party and released to sellers only after buyers had safely received their goods.