Datuk Seri Alexander Nanta Linggi
KUCHING (Oct 4): The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) has recorded a marked increase in the registration of online businesses since the Covid-19 pandemic hit the country.
Its minister Dato Sri Alexander Nanta Linggi said the increasing trend was driven by the current socio-economic situation, especially due to the pandemic which started in 2020 where traders have shifted to the digital ecosystem.
As at Aug 31 for this year, he said a total of 109,534 online businesses were registered, which accounted for 42.8 per cent of the overall number of businesses registered during the period.
He said in 2020, a total of 132,012 online businesses were registered, an increase of 5.8 per cent compared to 2019.
“There are 1,611 companies conducting online businesses registered from Jan 1 to Aug 31 this year, an increase of 71.2 percent over the same period last year.
“The number of registrations has shown an increase in 2020 where a total of 1,726 online companies have been registered while a total of 1,043 companies were registered in 2019,” he said in a reply to Datuk Robert Lawson Chuat (GPS-Betong) in the Dewan Rakyat today.
During the same period this year, he revealed that 250 limited liability partnerships conducting online businesses had been registered.
In 2020, he said there were a total of 386 limited liability partnerships conducting online businesses, contributing to 10 percent increase in the overall number of limited liability partnerships that year compared to 272 registered in 2019.
Citing Companies Commission of Malaysia’s (SSM) data, Nanta said 297,894 active online businesses recorded as at Aug 31 this year were entities registered under Business Registration Act 1956.
Under the Companies Act 2016, he said there are 6,415 companies registered; and 1,968 limited liability partnerships registered under the Limited Liability Partnerships Act 2012 that are active in conducting online business as at Aug 31.
In his ministry’s effort to encourage traders to venture into online businesses, Nanta said SSM had introduced the Prihatin Business Registration Scheme (SPPP) which provides free registration to B40 Group entrepreneurs and full-time higher learning students.
As at Sept 26 this year, he said a total of 18,476 traders have benefited from this incentive.
“In addition, SSM also continued the implementation of the 1 OKU 1 Business Scheme (S1OKU1P) which provides free business registration and renewal for the disabled. As at Sept 26 this year, statistics show nearly 13,096 businesses were successfully registered under this incentive,” he said.
Meanwhile, Nanta said his ministry had received 9,323 complaints on online transactions from January to September this year.
He said 445 of them were under investigation, while the rest had been resolved.
Of the total number of complaints, he said 5,700 were made by complainants who did not receive goods or services as offered, 315 for misleading prices of goods or services, 142 for online counterfeits, 30 for online piracy, 16 on online pyramid schemes and the remaining 1,489 for other related cases.
“Among the actions taken by the ministry in resolving the online complaints is to conduct investigations and inspections at business premises as well as online marketplace operators.
“The ministry has also collaborated with other agencies and ministries such as Malaysian Communications And Multimedia Commission to conduct site blocking or content removal using the provision under Section 263(2) of the Communications and Multimedia Act 1998 for any unethical business websites.
“This is also done with other authorities such as the police, the Ministry of Health, and Bank Negara Malaysia,” he added.
Nanta said that his ministry had also collaborated with internet service providers and telecommunications companies in an effort to obtain the information of website owners or communication line owners involved in online marketplace scams.
He added that his minister was also working together with online marketplace operators to provide alerts or warning notices to users.