KUSKOP Steps Up Oversight of Foreign E-Commerce Platforms to Shield Local MSMEs

Ultra-cheap imported goods sold straight from overseas factories to Malaysian shoppers have become a sore point for local traders. The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) says it is now coordinating a cross-ministry response, according to a written parliamentary reply reported by BernamaBiz on 22 October.

The ministry was answering Datuk Seri Mohd Shafie Apdal (Warisan-Semporna), who asked what immediate steps were being taken to protect small traders and MSMEs from that flood of low-priced products on e-commerce apps.

What the government is looking at

KUSKOP said the work involves the Ministry of Finance and the Ministry of Domestic Trade and Cost of Living (KPDN), and covers several areas for foreign platforms:

• Fair competition between overseas sellers and local businesses.
• Compliance with Malaysian standards and product safety rules.
• Taxation of goods sold into Malaysia.
• The wider regulatory framework for foreign e-commerce platforms.

The ministry added that Prime Minister Anwar Ibrahim raised the issue during bilateral talks with Chinese leaders in September 2026, and that follow-up measures are still being refined.

Helping local sellers go the other way

Alongside tighter oversight, KUSKOP listed efforts to help Malaysian MSMEs sell more online, including abroad. It said it is exploring pilot programmes to list Malaysian products on Tmall and Taobao for China, and to use Daraz to reach South Asian markets. SME Corp Malaysia signed a memorandum of understanding with Lazada Malaysia on 15 October under the MSME Digital Export Initiative, covering export training, market matching, product listings and brand promotion.

Bank Rakyat is also exploring partnerships with Alibaba and Lazada after a working visit to Shanghai in September.

"As an initial step, Bank Rakyat will identify between 30 and 50 potential entrepreneurs to participate in awareness sessions, training and mentoring with strategic partners." (KUSKOP, as reported by BernamaBiz)

Two existing channels got updated numbers. As of 7 October, 5,781 entrepreneurs had registered on MyMall, KUSKOP's digital marketing channel, generating RM24.5 million in sales. Under TEKUN's Online Financing Scheme (SPOT), RM4.7 million had been disbursed to 505 entrepreneurs as of August to help them expand through e-commerce.

What this means for Malaysian readers

No new rules have been announced yet, so prices on overseas apps will not change overnight. But the direction is clear: standards, safety and tax enforcement on imported online goods are being tightened, and the government is putting money and partnerships behind local sellers. If you run a small brand, competing on price alone against factory-direct sellers is a losing game. Your edge is local trust, faster delivery, after-sales support and products that meet Malaysian standards, so make those visible on your product pages and your own website. And if exporting has been on your list, the Lazada and Alibaba-linked programmes, MyMall and TEKUN's SPOT financing are worth checking before the next intake fills up.

Source: BernamaBiz, "KUSKOP Tightens Oversight Of Foreign e-Commerce Platforms To Protect Local MSMEs", 22 October 2026. Rewritten in our own words.