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 took effect on 1 December 2024 where deliveries under 2kg will see an increase in fees 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 emphasised 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.

Read the full text here