Globally, eCommerce fraud is escalating, and Malaysia is no exception. In 2024 alone the Royal Malaysia Police logged 35,368 cybercrime cases tied to online scams, and in just the first three months of 2025 we’re already at 12,110 cases with losses totalling RM 573.7 million. Legal protections such as the Contracts Act 1950, Consumer Protection Act 1999 and the Penal Code attempt to cover the issue, but as of today, there’s no single, dedicated act governing eCommerce fraud. Meanwhile, Singapore and Australia have taken steps to curb scams with the Singaporean Technical Reference 76 and the Australian Scam Prevention Framework.
eCommerce in Malaysia is primarily given legal recognition by the Electronic Commerce Act 2006 (‘ECA 2006’). The ECA 2006 facilitates electronic transactions by recognising the legal validity of electronic messages, documents, and contracts. It broadly covers ‘commercial transactions’ conducted via electronic means, encompassing the supply or exchange of goods or services.
While Malaysian law does not explicitly mention the ‘Metaverse’, many of its activities share the same fundamental characteristics as eCommerce.
The Review of eCommerce Legislation Final Report (Laporan Akhir Kajian Semakan Semula Perundangan eDagang) (‘the report’) represents a major national effort to modernise, refresh and renew the legal and regulatory framework for online commerce in Malaysia. Led by the Ministry of Domestic Trade and Cost of Living (‘KPDN’) with input from over 90 stakeholders, the report provides a comprehensive evaluation of existing eCommerce laws, identifies key enforcement and consumer protection gaps, and sets out a structured plan for reform. Richard Wee Chambers (a member of Grandall Law Firm) are the legal advisors in this Review of eCommerce Legislation.
In the digital era, the appeal of e-commerce is undeniable, browse at home, checkout in seconds, enjoy doorstep delivery. Yet this convenience masks a growing underside of risk for consumers. With smartphones, high-speed connectivity and platforms offering deep discounts, many of us have embraced online shopping as the go-to. The advantages include speed, access to global and local products, continuous promotions and variety.
Online shopping often brings many benefits, that is until issues arise.
Malaysia’s Ministry of Science, Technology and Innovation adopted the National Guidelines on AI Governance and Ethics. The launch of which is a key step in supporting the Malaysian National Artificial Intelligence Roadmap 2021-2025.
AIGE reinforces Malaysia’s commitment to global AI ethics inspired by guidelines from UNESCO, OECD, and the EU, to ensure trusted and responsible AI development. Following this, AIGE set out seven core principles consisting of fairness, safety, privacy, inclusiveness, transparency, accountability, and the pursuit of human benefit.
On 17 July 2025, an Engagement Session on the Review of E-Commerce Legislation was held at Zenith Hotel, Putrajaya to engage relevant stakeholders on the ongoing review of Malaysia’s e-commerce laws. The session was led by YB Datuk Armizan, Minister of Domestic Trade and Cost of Living (“KPDN”), and moderated by KPDN officers. The engagement session brought together approximately 300 participants, including platform representatives, vendors, and users.
The Act aims to provide for the sharing of data within the control of a public sector agency with another public sector agency.
The Act also establishes the National Data Sharing Committee, which conducts strict evaluations on applications made by respective public sector agencies and decides on whether the data requested can be shared.
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