Malaysia explores banning TikTok shop sales

Malaysian Minister of Communications and Digital Fahmi Fadzil said the government was considering the same policy as the Indonesian government regarding banning e-commerce transactions on the social media platform TikTok. Fahmi admitted that he had received complaints from the public regarding the impact of buying and selling transactions on the TikTok Shop feature. He added that several large stores also raised concerns about price competition for products sold through the platform.

Oct 11, 2023 - 08:17
Malaysia explores banning TikTok shop sales
Malaysia explores banning TikTok shop sales


"Many Malaysians use the TikTok Shop platform to sell goods. So, I will ask the Communications and Multimedia Commission (MCMC) and the ministry to look at the basis for the actions taken by the Indonesian government," he told reporters as quoted by The Star, Monday (9/ 10/2023). He also mentioned price games on the platform which had a negative impact on competition for local products. "I think TikTok needs to come forward and explain because one of the reasons TikTok Shop is banned in Indonesia is because of the issue of predatory pricing which threatens local entrepreneurs there," he said. He spoke to journalists after a mutual cooperation event at the Kampung Limau Public Housing Project (PPR) in Pantai Dalam.

TikTok, said Fahmi, must also explain the issue of personal data protection which is a concern for the public when shopping on the platform. "I think all social media (platforms) will study the behavior of their users, starting from what we like, what we share, what we buy and what we watch," he explained. "So, there are several things that the Ministry and MCMC need to pay attention to, especially on aspects of consumerism or personal data protection. I will immediately call TikTok to discuss (this issue)," he continued. Fahmi said this discussion was important because the Ministry had also received complaints from media organizations regarding the use of social media which had an impact on their operations. "Many companies no longer spend money on advertising through (traditional) media but through social media platforms. So, this has an impact on the media and I am very concerned about this problem," he added.

Previously, the Indonesian government had officially banned social media as well as e-commerce. The social media that serves buying and selling transactions for goods is TikTok Shop. The Indonesian government officially banned TikTok Shop on Tuesday (26/9/2023) in line with the enactment of Minister of Trade Regulation Number 31 of 2023 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Trading Through Electronic Systems. This regulation is a revision of Minister of Trade Regulation Number 50 of 2020. "It is no longer allowed (social media as well as e-commerce) starting yesterday. But we are giving it a week, this is socialization. Tomorrow I will write to you," said Minister of Trade Zulkifli Hasan at a press conference in Ministry of Trade, Central Jakarta, Wednesday (27/9/2023).

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