The Pahang Youth Council (MBP) has called for a comprehensive restructuring of TikTok Shop’s commission charges to alleviate the financial burden on Micro, Small, and Medium Enterprises (MSMEs). MBP President Saharuddin Ahmad stated that the current platform fees, which are estimated to range between 20% and 25%, are placing immense pressure on the profit margins of local entrepreneurs already struggling with rising operational costs.
According to Saharuddin, the situation has become increasingly dire as business owners face a “perfect storm” of economic challenges. These include the rising cost of raw materials, increased logistics expenses, and fluctuations in fuel prices, particularly diesel. He noted that high platform fees often force entrepreneurs into a difficult corner: either raising product prices—which hurts competitiveness—or absorbing the costs and risking the long-term sustainability of their businesses.
The proposal suggests a tiered fee structure based on the size and category of the enterprise to ensure a more equitable digital economy:
- Micro Enterprises: Fees reduced to between 5% and 10%.
- Small Enterprises: Fees capped between 10% and 12%.
- Medium Enterprises: Fees set between 12% and 15%.
Saharuddin also highlighted that global geopolitical instability, specifically ongoing conflicts in the Middle East, continues to disrupt supply chains and inflate operational overheads for Malaysian traders. He urged the government to intervene by initiating engagement sessions with digital platform providers and establishing a special committee to study the real-world impact of these charges on MSMEs.
“While digital platforms are essential drivers of the modern economy, there must be a balance between platform growth and the survival of the entrepreneurs who use them,” Saharuddin remarked. He emphasized that lowering fees to a range of 10% to 15% (S3.95–S5.93 / RM13.15 – RM19.72 based on a hypothetical RM131.50 sale) would provide the necessary breathing room for local businesses to remain resilient in a challenging global market.
