The Malaysian government is exploring a partnership with major Chinese e-commerce platforms to help local small and medium enterprises (SMEs) expand their reach into China and other international markets. Entrepreneur Development and Cooperatives Minister Steven Sim said the initiative aims to create a systematic approach that allows Malaysian products to be listed and promoted on these global platforms.

Sim highlighted that SME Corp Malaysia has been assigned to coordinate the effort, which includes securing the necessary permits and facilitating cooperation with Chinese e-commerce companies. Talks have already begun with at least one such platform, following Sim's recent visit to Guangzhou where he led a delegation of 12 Malaysian companies to the China International Small and Medium Enterprises Fair and attended the APEC SME Ministerial Meeting.

During the trip, Sim also met with several Chinese e-commerce firms to explore opportunities for Malaysian SMEs to access overseas buyers. He emphasized that cross-border e-commerce should facilitate two-way trade: while foreign goods enter Malaysia via these platforms, Malaysian products should also have equal opportunities to reach foreign consumers.

Regarding foreign e-commerce businesses operating in Malaysia, Sim noted that an inter-agency committee led by the Finance Ministry is currently overseeing enforcement, policy adjustments, and supporting local companies. The government plans to take action against foreign e-commerce operators that violate local laws, operate without permits, or misuse visas.

One recent policy requires foreign e-commerce platforms conducting business in Malaysia to register a local company. Sim explained that this measure is intended to ensure local accountability, particularly to protect consumers who purchase goods such as electrical products and food items online. By having a registered Malaysian entity, customers would have a clear point of contact for grievances and product issues.

Sim stressed that the regulation aims to create a level playing field rather than granting local businesses an advantage. The government wants foreign sellers to comply with the same standards as domestic businesses to foster fair competition in the e-commerce sector.

This move aligns with broader efforts by Malaysian authorities to support the digital economy and bolster SME growth by leveraging global platforms, while simultaneously strengthening consumer protections for online shoppers in Malaysia.