Malaysia charged 400 online business in court for not registering their business with the Authority .

25Jul10

The nst.com.my of Malaysia reported on July 20 2010 that “Four hundred online businessmen have been charged in court for not registering their business with the Companies Commission of Malaysia (SSM) in the past two years. “

Deputy Domestic Trade, Cooperative and Consumerism Minister Datuk Rohani Abdul Karim said they were charged under Section 12 (1) (a) of the Registration of Businesses Act 1956 (Amendment 2001) which carries a fine of up to RM50,000 or imprisonment not exceeding two years.

He said individuals or companies conducting online business were not exempted from registering themselves to prevent fraud.”

I know of many online business based in Malaysia . Most  of them are small operators  using their Blogs and Facebook to sell. By the way, does online business as defined by Malaysian Authority include selling in eBay?

Many of the online business are so small that it is not worth the money and time to register them.

I am hoping the Authority concerned will understand that we need to nurture the growth of these small on line business so that they will go into large companies some day . I hope the Authority need not be so hard on them after all what serious crime did they commit to deserve being sent to 2 years jail or fined $50 000. It is not murder to operate a small business .

But is the Authority saying that these 400 unregistered online businesses were involved in cheating their costumers? If it is so, they should be charged. If 400 online businesses were charged in 2 years, the number is very high and certainly their activities must have done a great damage to the credibility to Malaysia online business.

The NST report continues as follows:


The Malaysian Communications and Multimedia Commission (MCMC) is monitoring online business to detect individuals and companies which conduct business illegally, he told reporters after opening a dialog on business ethical practices here today.

“Businessmen should be aware of their responsibility and code of ethics and should not victimise consumers,” he said. – Bernama



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