Malaysia Aims to Address Burdensome Digital Platform Practices Affecting MSMEs

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Malaysia Tackles Digital Platform Challenges for MSMEs

Highlights

Prime Minister Datuk Seri Anwar Ibrahim stressed that Malaysia’s digital economy must address high commission fees, restrictive contracts and data control by digital platforms that burden MSMEs.
The third 2026 meeting of the National Digital Economy and Fourth Industrial Revolution Council (MED4IRN) reassessed the competitiveness of Malaysia’s digital economy and reviewed findings by the Malaysia Competition Commission (MyCC).
Budget 2027 provides RM57 billion in financing facilities for MSMEs, up from RM50 billion previously, marking the highest commitment to date.

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

Digital policy priorities and competition review

As reported by The Edge Malaysia, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s digital economy must be built on fair competition, including by addressing digital platform practices that could burden micro, small and medium-sized enterprises, or MSMEs.

He said the issues under consideration include high commission fees, restrictive contract terms and control over user data, which could put local businesses at a disadvantage. In a post on X on Wednesday, he also said key priorities include strengthening digital infrastructure, reducing government ICT spending and reviewing findings by the Malaysia Competition Commission, MyCC, on competition in the digital economy ecosystem.

Anwar made the remarks after chairing the third 2026 meeting of the National Digital Economy and Fourth Industrial Revolution Council, MED4IRN, which assessed the country’s digital economy progress and measures to strengthen Malaysia’s competitiveness as technology continues to advance.

Implications for MSMEs and Budget 2027 support

The government wants to ensure the digital economy not only attracts investment and drives growth but also provides fair opportunities for local businesses. According to Anwar, these efforts also aim to make everyday tasks easier for the public and ensure the benefits of digital economy development are shared more widely.

In the broader policy context, Budget 2027 focuses on strengthening MSME resilience to global economic challenges by expanding access to financing, reducing costs and improving the efficiency of government service delivery. Entrepreneur and Cooperatives Development Minister Steven Sim Chee Keong was reported as saying that the commitment includes providing RM57 billion in financing facilities for the sector, up from RM50 billion previously and the highest allocation of its kind to date.

SME Corp Malaysia’s Sinar Programme which we previously reported on, details how the initiative helps MSMEs cope with supply chain disruptions and rising operating costs, with 1,204 enterprises benefiting as of 30 September. The report also highlights Budget 2027’s focus on providing substantial allocations for MSME development through financing, digitalisation and automation, as well as expanded market access and human capital development.

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