🇲🇾 Everything you need to sell in Malaysia
Malaysia is a fast-growing Southeast Asian ecommerce market with 33 million consumers. Shopee and Lazada dominate the marketplace landscape. Malaysia replaced GST with SST (Sales and Services Tax) in 2018. The digital services tax expanded in 2024 to cover foreign digital service providers. Cross-border sellers face SST on services at 6%, import duties varying by HS code, and mandatory SIRIM certification for electronics and communications equipment.
Last updated: ·Verified:
Compliance Topics
📊 SST (Sales & Services Tax)
Malaysia operates SST instead of GST. Sales tax (10%) applies to manufactured goods. Services tax (6% or 8% from 2024) applies to taxable services including digital services. Foreign digital service providers (FDSPs) with B2C supplies to Malaysia exceeding RM 500,000 per year must register for services tax. Royal Malaysian Customs Department (RMCD) administers sales tax; Customs handles import环节.
- •Sales tax: 10% on manufactured goods (at manufacturing/import stage)
- •Services tax: 6% standard, 8% for certain services (from 1 Mar 2024)
- •FDSP threshold: RM 500,000 annual B2C digital supplies to Malaysia
- •No GST — Malaysia reverted from GST to SST in September 2018
- •Digital services tax covers streaming, cloud, SaaS, digital advertising
- •Marketplace facilitators collect services tax on behalf of sellers
🚢 Customs & Import Duties
Malaysia's import duty rates vary widely by product (0–60%). Low-value goods (≤RM 500) sold online via marketplace are subject to a 10% flat duty rate from 2024. All imports require a Customs declaration (K1 form). Sales tax at 10% applies to dutiable goods. Malaysia is a member of RCEP, CPTPP, and ASEAN trade blocs, providing preferential rates for qualifying goods.
- •Import duty rates: 0–60% depending on HS classification
- •Low-value goods (≤RM 500) online: 10% flat duty rate (from 1 Jan 2024)
- •Sales tax: 10% on most manufactured imports
- •Services tax: 6%/8% on imported digital services
- •K1 Customs declaration required for all commercial imports
- •RCEP, CPTPP, ASEAN FTA preferential rates available with Certificate of Origin
- •Prohibited/restricted items: narcotics, pornography, certain religious materials
🛡️ Product Safety & Certification
Malaysia requires SIRIM certification for electronics, telecommunications equipment, and certain consumer goods. SIRIM QAS International is the designated conformity assessment body. Halal certification from JAKIM is important for food, cosmetics, and pharmaceutical products. The Ministry of Domestic Trade and Consumer Affairs (KPDN) enforces consumer product safety under the Consumer Protection Act 1999.
- •SIRIM certification mandatory for electronics, telecom, IT equipment
- •SIRIM QAS is the designated conformity assessment body
- •Halal certification (JAKIM) critical for food, cosmetics, pharmaceuticals
- •Consumer Protection Act 1999: general product safety obligations
- •KPDN enforces mandatory product standards and recalls
- •Cosmetics must be notified to NPRA (National Pharmaceutical Regulatory Agency)
- •Food imports require MAQIS inspection and import permit
Sources:
🛒 Marketplace & Ecommerce
Shopee is the dominant marketplace in Malaysia, followed by Lazada (Alibaba) and TikTok Shop. Shopee Mall and LazMall provide branded seller programs. Cross-border sellers can use Shopee Global Seller and Lazada Global programs. English, Malay, and Chinese are used in product listings. Malaysia's ecommerce market is projected to reach USD 25 billion by 2027.
- •Shopee: dominant marketplace with ~60% market share
- •Lazada (Alibaba): second largest, LazMall for branded sellers
- •TikTok Shop: fast-growing social commerce platform
- •Shopee Global Seller: enables cross-border selling
- •Multi-language listings: English, Malay, Chinese
- •Cash-on-delivery (COD) still significant (~30% of orders)
- •E-Invoicing mandate: mandatory e-Invoicing from 1 Jul 2025 for all businesses
Avoid penalties — check your Malaysia compliance obligations
2-min self-check to confirm if you need VAT, EPR or customs registration
Start self-checkOfficial Sources
More Asia markets
This information is for general reference only and does not constitute legal, tax, or compliance advice. Consult a qualified professional and check official sources before making decisions.