The Consumer Choice Center (CCC), a global consumer advocacy group, today called on the Government to review and amend the current e-invoicing framework, urging authorities to exempt small online businesses earning RM150,000 or less annually. 

Under the present policy, small physical businesses with similar revenue thresholds are exempted, while online businesses are still required to comply with e-invoicing obligations.

The association expressed concern that the unequal treatment of small businesses based solely on their sales channel—physical or online—places unnecessary burdens on micro and small online entrepreneurs. This disparity may also result in higher costs being passed down to consumers, affecting product pricing and limiting variety in the market.

Tarmizi Anuwar, Malaysia Country Associate at the CCC said “As a consumer association, we are deeply concerned that the current e-invoicing policy unfairly penalises small online sellers, many of whom are everyday Malaysians trying to earn an honest living. It is not reasonable that small physical shops are exempt, yet online businesses operating at the same scale are forced to bear additional compliance costs and administrative burdens. Such an imbalance not only discourages digital entrepreneurship but may also reduce healthy market competition, ultimately impacting consumer choice and pricing.”

Many online businesses already use e-wallets, online banking, and digital payment platforms that automatically generate transaction records. These existing financial systems provide transparency and traceability, making additional e-invoicing requirements redundant and unnecessarily bureaucratic. Instead of imposing rigid compliance measures, policymakers should recognize that digital payment adoption itself enhances financial accountability without burdening small entrepreneurs.

“We strongly urge the Government to level the playing field by extending the same exemption to small online businesses. Supporting the growth of small businesses, regardless of whether they operate online or offline, ensures that consumers benefit from a broader range of affordable products and services, while encouraging the development of a fair and inclusive digital economy in Malaysia.”

CCC reiterated its commitment to safeguarding the interests of consumers and small businesses and welcomes engagement with relevant stakeholders to review policies that affect the broader marketplace.

KUALA LUMPUR, 5th March 2025—The Consumer Choice Center (CCC) supports the Public Administration Efficiency Commitment Bill 2025, which seeks to enhance government efficiency, cut bureaucracy, and improve transparency. These reforms are key to strengthening governance, boosting economic growth, and improving Malaysia’s Corruption Perception Index (CPI) ranking. By reducing red tape and improving service delivery, the Bill can enhance Malaysia’s competitiveness in attracting investment and fostering a dynamic business environment.

Tarmizi Anuwar, Malaysia Country Associate at the Consumer Choice Center, stated:

“The tabling of the Public Administration Efficiency Commitment Bill is a positive move towards improving government efficiency and reducing regulatory burdens. This initiative aligns with global best practices in governance and public service delivery. By addressing excessive bureaucracy and implementing a service performance ratings system, the government can enhance transparency, promote accountability, and restore public trust. More importantly, these reforms can create a business-friendly environment that strengthens Malaysia’s overall competitiveness.”

Clause 6 of the Bill, which mandates government entities to review and reduce regulatory burdens by at least 25% every three years, is particularly commendable. Regulatory excess has long been a concern for businesses and consumers, stifling innovation and economic progress. Reducing unnecessary red tape will not only improve Malaysia’s business environment but also ensure a more consumer-friendly regulatory framework, making the country a more attractive destination for investment and entrepreneurship.

Furthermore, the introduction of a service performance ratings system under Clause 7 is a crucial step in monitoring the effectiveness and efficiency of government entities. This will encourage continuous improvement and provide the public with measurable insights into service delivery, ensuring that businesses and individuals benefit from a more responsive and efficient administration.

“The implementation of regular performance assessments and public reporting is essential in ensuring that government agencies remain accountable and efficient. Additionally, allowing state government entities to voluntarily submit performance reports enhances the culture of transparency and fosters competition in service delivery. A government tjrprioritizes efficiency and responsiveness will ultimately improve Malaysia’s ability to compete on a regional and global scale,” added Tarmizi.

The Bill represents an opportunity to tackle inefficiencies that hinder business growth. By streamlining administrative processes and fostering a results-driven public sector, Malaysia can create a more conducive environment for businesses and consumers alike.

The Consumer Choice Center urges the government to ensure the effective implementation of these measures, with clear benchmarks and public engagement mechanisms to guarantee meaningful outcomes. A transparent, efficient, and accountable public administration will not only enhance Malaysia’s international reputation but also improve economic opportunities and competitiveness.

KUALA LUMPUR, 27th February 2025—The Consumer Choice Center Malaysia, through its representative, Tarmizi Anuwar, has questioned the government’s decision to implement the Reference Price Guidelines for courier services, which take effect on 1 December 2024. These guidelines recommend increasing the minimum price for deliveries under 2kg from RM4.00 to RM5.00.

Deputy Minister of Communications Teo Nie Ching, recently stated that these guidelines are not mandatory and merely serve as a reference for the industry. However, Tarmizi argues that while they may not be legally binding, such guidelines still harm the market and consumers.

“Although the government claims this is just a guideline and not a mandatory directive, courier companies can use these recommended prices to justify raising their service charges. This will burden consumers, especially small businesses and online sellers who rely on competitive shipping costs,” said Tarmizi.

He also emphasized that this move reduces competition in the market, as courier companies will no longer be incentivized to offer lower prices to attract customers. This deprives consumers of the opportunity to access cheaper services and negatively impacts the growth of the e-commerce industry.

Additionally, these guidelines do not encourage improvements in service quality. “If courier companies are not required to compete on pricing, they may be less motivated to enhance efficiency and service quality. In the end, consumers will not only pay more but also fail to receive the service improvements they deserve,” he added.

A study by Blackbox Research, titled Grasping the E-Commerce Opportunity in Southeast Asia, also found that delivery timeliness and high costs remain major concerns in rural areas, directly affecting the efficiency of e-commerce operations and consumer satisfaction in Malaysia.

“With the increase in the minimum delivery charge, rural consumers, especially in remote areas like Sabah and Sarawak, where logistical access is already limited, will face even higher costs without any guarantee of improved services,” he noted.“This move not only raises costs for consumers but also does not ensure any enhancement in service quality. Therefore, policies that focus more on competition and innovation within the courier industry should be prioritized to ensure more efficient and affordable services for consumers,” he concluded.