PAHANG YOUTH COUNCIL URGES LOWER TIKTOK SHOP FEES TO SUPPORT MSMES

KUANTAN, March 29 (Bernama) -- The Pahang Youth Council has proposed a restructuring of fees on TikTok Shop to ease the burden on Micro, Small and Medium Enterprise (MSME) entrepreneurs facing rising operating costs.

Its president, Saharuddin Ahmad, said current platform charges, estimated at 20 to 25 per cent, are placing significant pressure on profit margins.

He noted that the situation is further compounded by increasing costs of raw materials, logistics and fuel, including diesel, as well as global uncertainties.

“In a high-cost environment, steep platform fees force entrepreneurs to either raise prices or absorb reduced margins, ultimately affecting competitiveness and business sustainability,” he said in a statement.

Saharuddin added that geopolitical tensions, particularly in West Asia, have disrupted supply chains and driven up operating expenses, intensifying challenges for local businesses.

To address this, he proposed a reduction in platform charges to between 10 and 15 per cent, implemented in phases according to MSME categories.

The suggested structure includes fees of five to 10 per cent for micro enterprises, 10 to 12 per cent for small enterprises and 12 to 15 per cent for medium-sized businesses.

He stressed that such measures are crucial to ensuring a fair and sustainable digital economy, while enabling local entrepreneurs to continue growing in a challenging environment.

Saharuddin also called on the government to engage with digital platforms, establish a dedicated committee on platform charges and conduct a comprehensive study on the cost impact faced by MSMEs.

“Digital platforms play a key role in economic growth, but there must be a balance between platform expansion and the survival of entrepreneurs so that the benefits are shared more equitably,” he said.

-- BERNAMA