Malaysia to replace 2006 E-Commerce Act with new regulation

The Malaysian government is drafting a new e-commerce law to replace the Electronic Commerce Act 2006. The initiative aims to strengthen regulation and accountability for platforms, sellers, and users within the digital ecosystem.

Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali stated that the current 2006 legislation primarily serves to validate the legal standing of electronic transactions and signatures. However, it lacks a comprehensive framework to define the specific responsibilities of parties operating in the modern e-commerce sector.

The new bill follows an announcement by Prime Minister Datuk Seri Anwar Ibrahim to expedite the drafting process to keep pace with rapid digital business growth. The Ministry of Domestic Trade and Cost of Living is collaborating with the Attorney-General’s Chambers, the communications ministry, the Malaysian Communications and Multimedia Commission, and the digital ministry on the draft. A Cabinet memorandum was submitted two months ago, and the bill is expected to be presented in the upcoming parliamentary session.