Minimum Courier Charge Increase: Who is the Government Protecting?
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 da 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.