- Due to foreign-owned e-platforms, Malaysia’s modern market is different from Indonesia ‘.
- Local companies, 78.4 % of which are microscopic SMEs and nbsp, are constrained in their growth by the ban on TikTok Shop.
A thoughtful and creative approach to TikTok Shop is encouraged by e-Commerce Malaysia, a section of the National Tech Association of Malaysia( PIKOM ). Examining the platform’s significant role and taking into account its broader ramifications for the Indonesian digital economy landscape are both parts of this strategy. & nbsp,
The watchful considerations made regarding TikTok Shop by Communications and Digital Minister Fahmi Fadzil highlight legitimate concerns. These worries are comparable to Indonesia’s recent ban on TikTok Shop, which was brought on by worries about data security and opportunistic prices.
Ganesh Kumar Bangah( pic ), chair of the e-Commerce Malaysia chapter and advisor to PIKOM, emphasized that banning & nbsp, TikTok Shop in Malaysia inadvertently restricts the expansion and reach of local businesses, particularly micro SMEs, which account for 78.4 % of all businesses in the country and have grown to be the largest segment of users.
He points out that TikTok Shop has significantly changed” social commerce ,” bringing together creators, companies, and customers for e-commerce. This cutting-edge strategy easily combines content creation with commerce, giving SMEs, creators, and e-commerce enablers access to a user-friendly and supporting platform.
According to Ganesh, Tik Tok Shop helps create an average salary of about RM1, 500 for 200, 000 influencers in Malaysia, with the vast majority of them coming from sub-urban to remote areas. It has also proven to be a strong platform to support level the playing field for little brands to contend against established market players. In the worst case scenario, outlawing Tik Tok Shop will eliminate this source of income and stifle the marketing efforts of the small and non-brand that rely on the platform & nbsp.
Bangah notes that the Indonesian online marketplace landscape differs from Indonesia due to the prominence of foreign-owned e-commerce marketplaces like Lazada and Shopee these versus Indinesia having an incentive to defend some of its huge domestic markets. This is in contrast to Indonesia’s ban on Tik Tok Shop, which has prompted some calls in Malaysia to follow suit. Thus, outright bans on websites like TikTok Shop may restrict the entrepreneurship of rakyat and neighborhood businesses, especially among the B40 age group. & nbsp,
Instead, according to e-Commerce Malaysia, TikTok Shop’s function and accountability in the neighborhood firm atmosphere need to be addressed.
The following are some of e – Commerce Malaysia’s suggestions:
- Community Engagement: TikTok Shop should prioritize strategic discussions about local policies with business associations, creator communities, and e-commerce accomplices. Decisions that could have a negative effect on the neighborhood firm environment should be made in collaboration.
- Upholding and Fostering Local Capacities: Through workshops, coaching, and platform tools that enable regional players to understand and utilize the online market properly and morally, TikTok Shop should prioritize the capacity building of native creators and e-commerce enablers over those from abroad.
- Community Investment: To co-fund capacity development programs for local developers and SMEs, TikTok Shop may also collaborate with local populations, industry associations, and government agencies.
- Prioritization of Local Brands and Enablers: By making sure that native customer traffic is directed to local businesses and e-commerce enabler rather than international owned people, TikTok Shop should prioritize locally owned businesses over foreign-owned ones.
As a result, the state may create policies that encourage international platforms like TikTok Shop to integrate creative group investment and engagement into their operating framework while still protecting regional interests.
This strategy ensures that as these platforms gain benefit from our marketplaces, they also give our native economies access to valuable resources, information, and opportunities. The following are included in these steps:
- Enact policies that ensure a level playing field in our modern market and stop anyone from taking advantage of it by charging unfair prices or jeopardizing consumer data safety. Our objective is to promote a digital economy in which everyone— local and foreign — contributes fairly and doesn’t abuse the system.
- With a focus on protecting and empowering the B40 sector, which includes rural areas and kampung sellers, develop strategies to ensure that the financial benefits of global platforms are distributed fairly among native entities.
The future of e-Commerce Malaysia and PIKOM envisions a coexistence and collaboration between international and local online entities, socially bolstering one another, and supporting an expanding, just, sustainable digital economy.
Policies should skillfully use international innovations to nurture and improve our local modern surroundings in order to shape this online potential. & nbsp,
As a result, we sincerely offer our knowledge and advocacy, promising to work with the government and global systems. According to Ganesh,” our shared effort is focused on regularly fostering a future in which Malaysia occupies an advantageous position within the international digital sphere, advancing our economy and societal development.”