1         E-commerce emerge rapidly after year 2012.From conservative perception on the online transaction security and insecure ofmerchandising, slowly the community is accepting the trend and benefits ofe-commerce.

2         Since 2011, Malaysian government hasinitiated a method of providing the consumer a level of confidence to theonline merchant via a trust seal to the e-commerce website. The digitalcertification is named Malaysia Trustmark.- http://mytrustmark.cybersecurity.my/index.html.

3         CyberSecurity Malaysia is appointed to drivesthe Malaysia Trustmark on the e-commerce merchant. Through Malaysia Trustmark,CyberSecurity Malaysia able to provide its expertise in validating the websitesecurity from any exploitation.

4         Other than online security validation,Malaysia Trustmark also promotes good e-commerce practice based on global bestpractices. The Malaysia Trustmark requirements refer to the World TrustmarkAlliance Code of Conduct for evaluation and approval principles upon issuing atrust seal on the merchant’s website. Malaysia had become the member of the WorldTrustmark Alliance (WTA) since 2011. WTA is an organisation that harmonised aguideline for the trustmark operator. Through the membership, the certifiedmerchant is recognised between the country members.

5         WTA code of conduct consists of 6 domains forthe operator to refer and implement based on the type of trustmark they offered:http://worldtrustmark.org/index.php/wta-documents.html

Figure1: 6 Domains in WTA Code of Conduct for Trustmark Operator

6          After 3 years, the e-commerce trend hasgrowth exponentially resulting more initiatives from the government to supportthe local merchant and at the same time promoting the economy development.

7          on 18th Jan 2016, a platform isestablished and chaired by the Ministry of International Trade and Industry(MITI) named as National eCommerce Council (NECC). The objectives are toaccelerate growth of eCommerce in Malaysia through governance andimplementation of the National eCommerce Strategic Roadmap (NeSR). NECC membersconsist of relevant ministries and agencies who will be responsible tocoordinate the implementation of programs under the NeSR.

8          The key aspects of NeSR are six (6) thrustareas with a supportive governance framework: http://tinyurl.com/zo2b97s

Figure2: 6 Thrust Areas under National eCommerce Strategic Roadmap

9          Through these areas, all the stakeholders ineCommerce ecosystem could contribute towards the national agenda which isdoubling eCommerce growth.

10        On 22 March2017, Malaysia and China had launched the world’s first Digital Free Trade Zone(DFTZ) that will provide physical and virtual zones to facilitate SMEs tocapitalise on the convergence of exponential growth of the internet economy andcross-border e-commerce activities. DFTZ will act as a microcosm to supportinternet companies to trade goods, provide services, innovate and co-createsolutions. - https://www.mdec.my/news/malaysia-launches-worlds-first-digital-free-trade-zone

11        DFTZ consist of 3 main components:

i.           eFulfillment Hub will be centred at KLIA Aeropolis. KLIAAeropolis development is centered on the key clusters of air cargo andlogistics, aerospace and aviation. The initial phase will be rolled out beforethe end of 2017 by Alibaba, Cainiao, Lazada and POS Malaysia, leading to theformal launch of Alibaba's facility at the end of 2019.

ii.           SatelliteServices Hub, to belocated in Bandar Malaysia. Kuala Lumpur Internet City (KLIC) will be the firstsatellite services hub of DFTZ and will be developed by another strategic partner,Catcha Group, Southeast Asia’s leading internet group. KLIC is set to be thepremier digital hub for global and local internet-related companies targetingSoutheast Asia. It will comprise of key players within the internet ecosystemto facilitate end-to-end support, networking and knowledge-sharing that willdrive innovation in the internet economy and the eCommerce industry.

iii.           E-ServicesPlatform, will be madeavailable in time to support the goods movement within DFTZ. The e-Servicesplatform will also offer integrated services that will help deliver astreamlined and efficient experience to the users operating from the DFTZ.

Figure 3: Initiatives & Support byGovernment in Malaysia from 2010 - 2017

12        The Personal Data Protection Act 2010 (PDPA)has been gazetted on 15 November 2013.  – https://united-kingdom.taylorwessing.com/globaldatahub/article_malaysia_dp.html

13        Some important notes pertaining to the PDPAare:

i.           The PDPA does not apply to personal dataprocessed outside Malaysia unless such data is intended to be further processedin Malaysia. The PDPA does, however, apply to parties not established inMalaysia but using equipment in Malaysia to process personal data other thanfor purposes of transit through Malaysia.

ii.           The PDPA doesnot permit a data user to transfer any personal data outside Malaysia except tocountries specified by the Minister and published in the Gazette. There arecertain exceptions specified in the PDPA where personal data can be transferredout of Malaysia, i.e. where the individual has given consent to the transfer,if the transfer is necessary for the performance of a contract between theindividual and data user, the transfer is for purposes of legal proceedings orfor the purposes of obtaining legal advice.

iii.           The MalaysianFederal and State governments are also excluded from complying with thePDPA.

14        Due to this exemption, it is important forMalaysia to adapt and cater for the e-commerce requirement especially incross-border information flows via online transaction. Without privacyregulation recognition between countries, the privacy enforcement authoritywill have difficulties to ensure the information privacy is secure and doenforcement to data user who breach the privacy policy.

15        Privacy regulation recognition betweencountries could be done under the APEC Cross-Border Privacy Rules System(CBPRs) as a platform to harmonise the implementation and channel of monitoringon the e-commerce merchant.

16        Participating in such platform may requirefeasibility study to know whether Malaysia is ready to take the challenges andis well prepared to meet the requirement. Based from the earlier e-commerceinitiatives implementation, in order to achieve good impact or recipient fromthe society, government needs to utilise the mass media including social mediaplatform. Most of the merchant in e-commerce are the younger generation thatspend most of their time and business marketing via internet. Without properbudget allocation to these marketing platform, some initiative may not get goodresponse. In fact, the program will not be able to sustain for a long term.