KUALA LUMPUR, MALAYSIA February 5, 2026 – The Ministry of Domestic Trade and Cost of Living (KPDN) is planning significant reforms to e-commerce legislation to address the rising issue of online fraud, Minister Datuk Armizan Mohd Ali told Parliament today.
He revealed that out of more than 136,000 complaints received through various KPDN complaint platforms, the highest number—33,400—related to allegations of online fraud. This high volume of complaints highlights the pressing need for stronger consumer safeguards in digital transactions.
As one of the core elements of the e-commerce legislative reform study, KPDN aims to establish a more comprehensive dispute resolution framework. In the upcoming e-commerce law reforms targeted for presentation in the next parliamentary session or term, a key enhancement will be the introduction of a government-regulated Online Dispute Resolution (ODR) platform.
This ODR platform will strengthen the existing Alternative Dispute Resolution (ADR) mechanisms. Unlike ADR, which often involves physical processes, ODR will fully leverage digital platforms to streamline all stages—including negotiation, mediation, arbitration, and case hearings—making them fully online.
The initial rollout of ODR will focus on complaints and cases under KPDN’s jurisdiction, with plans to eventually expand it across the entire e-commerce ecosystem in Malaysia. These improvements are essential given the persistently high complaint rates, to enhance consumer protection, and to foster a healthy, sustainable, and progressive e-commerce environment.
Datuk Armizan emphasized that these enhancements directly respond to ongoing complaint trends and align with the government’s efforts to modernize the legal framework for the digital era. The reforms are expected to form part of amendments or new legislation on e-commerce, building on ongoing KPDN initiatives to tackle issues such as platform liability, transparent product information, and cross-border enforcement.
With the introduction of ODR, consumers are expected to gain faster, easier, and more cost-effective access to resolutions, thereby boosting confidence in online transactions nationwide.
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