KUALA LUMPUR, Feb 10 (Bernama) -- The Ministry of Domestic Trade and Cost of Living (KPDN) is seeking greater coordination to strengthen enforcement against business practices that contravene competition rules among online travel agencies (OTAs).
Minister Datuk Armizan Mohd Ali said collaboration involving the Malaysia Competition Commission (MyCC), the Ministry of Tourism, Arts and Culture (MOTAC), and the Malaysian Communications and Multimedia Commission (MCMC) needs to be further enhanced.
He said a market review has revealed business practices among OTAs that may violate the Competition Act 2010 (Act 712), consistent with trends observed by competition authorities in other countries such as Hong Kong, Japan and China.
“This situation requires a joint investigation across agencies led by MyCC, particularly concerning price parity issues and commission fee structures,” he told a press conference after launching the Market Review on the Digital Economy Ecosystem under the Competition Act 2010, which was also attended by MyCC chairman Tan Sri Idrus Harun, here today.
Armizan said such practices not only burden hotels and travel agents but also potentially prevent consumers from accessing better deals, thereby hampering the growth of the local tourism industry.
Armizan added that the market review will be presented to the Cabinet.
The review put forward 18 recommendations, including three key proposals besides the OTA-related issues requiring immediate government action, namely the establishment of a Central Digital Economy Task Force to address regulatory gaps and legislative shortcomings, and to strengthen cross-ministry and agency monitoring and enforcement.
He noted that the Data on the Service Tax on Digital Services (SToDS) rose to RM1.62 billion in 2024, compared with RM802 million in 2021.
“However, the study estimates a significant potential annual tax contribution gap due to differences in tax rates between digital platforms and local businesses,” he said.
-- BERNAMA
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