Sellers, buyers and platforms must work together to keep Malaysia's MSMEs competitive

Focus Malaysia

3 days ago

THE Wawasan Institute for Policy Excellence (Wawasan) is urging for a more constructive and collaborative approach to discussions surrounding Malaysia's digital commerce landscape.
At a time when local micro, small and medium enterprises (MSMEs) face mounting competition, platforms that actively invest in enabling seller success must be recognised and supported.
Rather than focusing narrowly on pricing debates, Wawasan believes attention should be placed on how digital platforms are empowering Malaysian MSMEs by offering access to training, AI-powered analytics, performance insights, and trusted delivery and transaction systems.
'We need to move away from a binary framing of sellers versus platforms. In reality, both are deeply interconnected and so are their futures,' said Wawasan founding director Tarmizi Anuwar.
'A strong digital economy is only possible when sellers, buyers, and platforms work together to build trust, efficiency and growth.'
Wawasan noted that some platforms in Malaysia have made significant investments to strengthen the seller ecosystem.
For instance, widely available seller education programmes such as free online classes and masterclasses on campaign participation, digital marketing, and content creation have helped many small businesses upskill and stay competitive.
Real-time tools that provide data on product performance, buyer demographics, and market trends also help sellers optimise their listings and pricing more effectively.
In addition, improvements in logistics infrastructure, such as same-day or next-day delivery options and self-collection at pickup points, have become increasingly common.
These services not only benefit consumers, but also directly improve order completion rates and reduce cancellations for sellers.
Many platforms also offer built-in buyer protection and return mechanisms, which reinforce consumer trust and in turn drive repeat purchases, ultimately benefitting seller performance.
'These features aren't just technical upgrades; they're strategic investments into seller success. Every ringgit spent improving logistics or buyer confidence helps sellers secure more loyal customers,' added Tarmizi.
As Malaysia continues to pursue its MyDigital agenda, Wawasan believes platforms that prioritise local MSME development should be part of the national strategy.
These are not just online marketplaces, they are digital infrastructure partners helping entrepreneurs grow sustainably.
Wawasan also warned that as international players continue to enter the Southeast Asian market, Malaysian MSMEs will face increasing price pressure.
Undermining the local platforms that support sellers could leave small businesses more vulnerable to undercutting by foreign competitors offering low-cost goods without reinvesting in the local economy.
'We need to recognise that Malaysia's MSMEs don't just need a place to sell, they need partners that help them grow, compete and scale,' Tarmizi pointed out.
'When platforms provide the tools, infrastructure, and insights to do this, it benefits not just the seller, but the whole economy.'
Wawasan concluded by calling for open dialogue and partnership between government, platforms, and seller associations to build a resilient, inclusive and competitive e-commerce landscape.
'The health of our digital economy depends on how well we collaborate. When platforms succeed in lifting sellers, we all win. That's the spirit Malaysia must move forward with,' concluded Tarmizi. ‒ July 23, 2025
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