Malaysia proposes e-Rahmah to help local traders compete with foreign e-commerce platforms

Traders Union
All News
Business & Wealth
Companies
Malaysia proposes e-Rahmah to help traders

Highlights

Kota Melaka MP Khoo Poay Tiong proposed the e-Rahmah digital voucher scheme to support local businesses competing with foreign platforms such as Pinduoduo.
The government will table the E-Commerce Bill at the next parliamentary sitting to regulate foreign e-commerce platforms in Malaysia.
The proposed construction of a 90-kilometer rail route linking Melaka and KLIA is expected to stimulate tourism, investment and the state's economic growth.

This article was translated from the original. Read the original version by our correspondent here.

e-Rahmah proposal during the 2027 Budget debate

As reported by The Edge Malaysia, Kota Melaka MP Khoo Poay Tiong proposed that the government adapt the Rahmah sales programme under the Ministry of Domestic Trade and Cost of Living into an online voucher scheme called e-Rahmah.

While debating the 2027 Budget in the Dewan Rakyat on Tuesday, he said that drafting legislation to address Pinduoduo's impact on local traders could take time. In the meantime, consumers could use the vouchers on platforms such as TikTok and Shopee, thereby directing spending towards local businesses.

Pinduoduo, which entered the Malaysian market last December, offers a wide range of goods, including personal care products, household essentials and snacks, at prices significantly lower than local prices. In its August 24–30 edition, The Edge Malaysia Weekly reported that local retailers and e-commerce players had raised concerns about an uneven playing field with China-based e-commerce platforms.

Among the main complaints is that Pinduoduo is not subject to the same regulatory and tax requirements that local traders must comply with. When presenting the 2027 Budget on October 9, Prime Minister Datuk Seri Anwar Ibrahim said the government would table the E-Commerce Bill at the next parliamentary sitting to regulate foreign e-commerce platforms operating in Malaysia.

Impact on trade and the Melaka rail proposal

The e-Rahmah proposal reflects a more immediate policy effort to ease competitive pressure on local businesses while the new legislative framework is being prepared. If implemented, the digital voucher approach could shift part of consumer demand to local channels without waiting for the regulatory process to be completed.

Separately, Khoo also proposed building a rail network linking Melaka to Kuala Lumpur International Airport, KLIA. Currently, Melaka's only rail connection is the Keretapi Tanah Melayu service, which only reaches Tampin, near the state border with Negeri Sembilan.

According to him, the proposed rail route to KLIA could cover a distance of about 90 kilometers in around 30 minutes. The link could stimulate Melaka's tourism sector, attract investment and support business activity, thereby contributing to the state's economic growth.

In our earlier coverage of enforcement coordination and the E-Commerce Bill, we discussed the government's move to establish an inter-ministerial working committee to examine the entry of foreign products and players putting pressure on local SMEs. The article also touched on efforts to strengthen the digital trade ecosystem through local product campaigns such as “Jom Beli Produk Malaysia” and 2027 Budget allocations to help SMEs and rural products access digital platforms and international markets.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.