KPDN Proposes Integrated ODR Platform to Strengthen E-Commerce Regulatory Reforms
KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) has proposed the establishment of an integrated Online Dispute Resolution (ODR) platform as part of its efforts to reform Malaysia’s e-commerce regulatory framework.
Domestic Trade Minister Armizan Mohd Ali said the proposal was one of the key findings from a comprehensive study conducted by the ministry following a surge in e-commerce-related complaints.
He said KPDN recorded 33,400 complaints linked to online transactions between 2023 and 2025, highlighting the urgent need for a more efficient dispute resolution mechanism.
“The proposed ODR system will enhance the existing Alternative Dispute Resolution (ADR) framework by digitising the entire process, from case filing to adjudication and final decisions,” he said during the Dewan Rakyat sitting today.
Armizan added that the ministry aims to table the proposed reforms at the next parliamentary session to seek lawmakers’ support.
“We hope these legal amendments will help create a healthier, more sustainable and progressive e-commerce ecosystem, while significantly reducing consumer complaints,” he said.
He was responding to a supplementary question from Hulu Terengganu MP Rosol Wahid on the status of a proposal to introduce special licensing for online businesses.
According to Armizan, the study recommends two possible approaches: introducing a dedicated licensing regime for e-commerce operators or adopting a risk-based compliance model that emphasises self-regulation.
“Both options are still under review and will be presented to the Cabinet for policy direction before being incorporated into legislation,” he said.
On consumer complaint trends, Armizan revealed that KPDN received a total of 83,239 complaints across various categories from 2023 to 2025, with online fraud accounting for the largest share.
Other reported issues included misleading pricing, failure to deliver goods, products not matching descriptions, counterfeit items, digital piracy and online pyramid schemes.
During the same period, 1,136 cases were resolved under several key laws, resulting in total compounds of RM880,625.
Armizan stressed that the proposed e-commerce reforms aim to strengthen consumer protection, promote fair business practices and support the long-term growth of Malaysia’s digital economy.
-wilayah.com.my
