Malaysia Discusses Not Banning TikTok Shop, But Has Four Requirements

Today, Ganesh Kumar Bangah, Chairman of the Malaysian E-Commerce Council, discussed the issues of TikTok Shop in Malaysia. He made it clear that banning TikTok Shop will seriously affect a large number of local small and medium-sized enterprises, creators and e-commerce promoters, as is the case in Indonesia. This will inadvertently limit the development and coverage of local enterprises, especially those who account for the total number of Malaysian enterprises. 78.4% of micro-small and medium-sized enterprises.

This is undoubtedly the best news that TikTok Shop sellers have received recently.

According to foreign media reports, Ganesh Kumar Bangah praised TikTok’s huge influence in “social e-commerce”. It directly connects creators and businesses with consumers, promotes the progress of e-commerce, and has become the most popular social e-commerce platform in the past few decades. One of the most important e-commerce innovations, it is comparable to the changes in marketplace platforms such as eBay decades ago.

However, although TikTok Shop will not be banned, Malaysian officials have made four suggestions for TikTok in response to the response from local supermarkets that "there are a lot of pricing problems and excessive promotion strategies in online sales business":

1. Community participation. TikTok Shop should actively discuss local policies, including revenue sharing policies, with industry associations, creator communities, and e-commerce promoters before making policies that may have a negative impact on the local business environment and TikTok Shop’s reputation in the community.

2. Support and promote local capabilities. TikTok Shop should prioritize capacity building of local creators and e-commerce promoters, rather than through workshops, training and platform tools, to enable local players to operate and utilize digital markets effectively and compliantly.

3. Community investment. TikTok Shop should also establish partnerships with local communities, industry associations and government agencies to jointly fund capacity development projects for local creators and SMEs to enhance the capabilities and competitiveness of local entities.

4. Prioritize local brands and drivers. TikTok Shop should give priority to local brands and e-commerce promotion methods instead of foreign brands and e-commerce promotion methods to ensure that local consumer traffic is directed to local brands and e-commerce promotion methods.

The Malaysian e-commerce department stated that while paying close attention to local interests, the Malaysian government will also formulate relevant policies and will not exclude the entry of global platforms such as TikTok Shop. Instead, it will encourage them to integrate constructive community investment and participation into their business structures.

Currently, TikTok head of e-commerce Kang Zeyu also expressed his views on the recent Indonesian events.

According to reports, TikTok head of e-commerce Kang Zeyu conducted an in-depth communication internally. He said that this incident happened very suddenly and the reasons behind it were very complicated. "We will work hard to recover as soon as possible."

Kang Zeyu said that Indonesia has recently introduced a new e-commerce bill, which imposes a series of restrictions on e-commerce through social media. Therefore, products and businesses need to be compliantly transformed to meet regulatory requirements, so operations have been temporarily suspended.

At the same time, TikTok will communicate with users, merchants, logistics, payment and other relevant partners, make every effort to handle follow-up work, ensure the fulfillment of orders and after-sales customer service, and maintain communication with seller experts.

Policies are changing rapidly. TikTok US stores have opened their own operation models, and domestic business licenses are also available!You can click here to fill out the intention form

(Cover/Picture Chong Creative)

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Tag: TikTok e-commerce, Malaysia, TikTok Shop, social e-commerce, small and medium-sized enterprises