Fairness vital in online business
RM50,000, or both.
Last year, Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Seri Alias Ahmad said about 30,000 online businesses were registered with CCM from 2012.
He said action was taken against 478 online business owners in 2015 under the Business Registration Act 1956 (Amendment 2001) for failing to register their companies.
There was no mention whether these businesses included those operating outside the country.
If the ministry has no control over them, acting against local operators would allow foreigners to take a bigger chunk of online sales in Malaysia.
Already, giant online travel agencies (OTAs) have taken the lion’s share from local travel and tour operators.
These OTAs are not subject to laws and taxes, unlike brick-andmortar travel and tour companies that are licensed by the Tourism and Culture Ministry.
Licensed operators must comply with the Tourism Industry Act and Tourism Vehicles Licensing Act.
If CCM cannot rein in unregistered online businesses, it should work with the Malaysian Communications and Multimedia Commission.
Both commissions could issue a joint statement spelling out the government’s position regarding online activities and business.
It is easy to issue warnings or go after local entrepreneurs exploring online business. The priority should be protecting local businesses and the ringgit.
Malaysians welcome foreign investments and competition, but the playing field must be level.
Government agencies should not place local businesses at a disadvantage.
After all, the role of CCM is to ensure that businesses in the country are locally registered.