PEMM supports government's initiative to review Indonesia's TikTok sales ban

KUALA LUMPUR: The Persatuan Ekonomi Muslim Malaysia (PEMM) has expressed its full support for the government's initiative to review the recent decision by Indonesia to prohibit e-commerce sales on the TikTok platform.

PEMM president Abdul Hannan Abdullah said the digital era presented a vast opportunity, and it was imperative to make informed decisions that safeguard Malaysia's socioeconomic pillars.

He added that TikTok Shop's meteoric rise has prompted scrutiny regarding its influence, and many entrepreneurs voice concerns over an uneven playing field, feeling that their efforts and innovations were not met with due recognition or protection on the platform.

"A closer look at TikTok Shop's governance policies is urgently needed," he said in a statement today (October 9).

Abdul Hannan also noted that the comprehensive data collection mechanisms of TikTok Shop had raised questions on security and data utilisation.

"Questions loom large about how this data is utilised, its storage security, and the broader implications on a national and international scale. The big question is the relevance of the Personal Data Protection Act 2010 (to the data collection)," he said.

Abdul Hannan added that TikTok Shop was increasingly positioned as a potential nexus for counterfeit transactions due to its expansive connections to manufacturers, especially in China, and this posed risks to both the local industries and consumer trust.

He also cited the 2022 MyIPO report, which unveiled concerning insights into the e-commerce landscape, where a staggering RM1.2 billion worth of counterfeit goods were seized in the year.

"Alarmingly, RM400 million of this figure is linked directly to key online platforms," he said. – Bernama

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