MALAYSIA, Kota Kinabalu, June 21, 2025 – The Ministry of Domestic Trade and Cost of Living (KPDN) launched the 2025 Business Digitalization Program (PPP25) in Sabah, an initiative by the Companies Commission of Malaysia (SSM) to empower B40 entrepreneurs and aspiring entrepreneurs through digital technology. The program aims to enhance operational efficiency, expand market access, and improve product quality via platforms like social media and e-commerce.
According to the Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, digitalization is the core driver for boosting the performance of the distribution trade sector. “The use of digital technology opens up local and international market opportunities,” he said during the launch in Kota Kinabalu.
The PPP25 series in Sabah is the first of three planned for 2025, with subsequent series in Penang and Terengganu. At the same event, SSM distributed Corporate Zakat Wakalah (WZK) worth RM107,518 and Corporate Social Responsibility (CSR) contributions of RM45,000 to the underprivileged in Sabah.
Business Registration Statistics in Sabah
According to SSM, as of May 31, 2025, a total of 77,546 companies and 1,676 Limited Liability Partnerships (LLPs) were registered in Sabah, with 31,110 companies and 1,510 LLPs remaining active. In Kota Kinabalu alone, 39,525 companies and 1,118 LLPs were registered, with 15,331 companies and 1,003 LLPs active. These figures exclude companies registered under Sabah’s Business Licenses Ordinance 1948.
E-Commerce Legislation Review
KPDN is finalizing the E-Commerce Legislation Review Study, which began in April 2024 and is expected to conclude in August 2025. The study aims to identify gaps in existing legislation, benchmark international practices, and propose new or amended laws. The Consumer Protection Act 1999 and the Electronic Commerce Act 2006 are among the laws under KPDN’s oversight.
A total of 63 entities from the public, private, and industrial sectors have participated in engagement sessions, alongside surveys with e-commerce firms and consumers. A townhall session with industry players is scheduled for July 17, 2025, to gather further input. Policy recommendations will be presented to the Cabinet before being tabled in Parliament.
Economic Contribution of E-Commerce
The e-commerce sector contributed RM248.4 billion (13.6% of GDP) in 2023. Its revenue grew by 6% from RM1,037.2 billion in 2021 to RM1,099.7 billion in 2022, with a target of RM1.65 trillion by 2025. KPDN is committed to advancing the sector through a whole-of-nation approach, leveraging digitalization as a key driver.