Minimum Courier Charge Increase Who Is The Government Protecting

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THE Consumer Choice Centre (CCC) Malaysia has questioned the government’s decision to implement the Reference Price Guidelines for courier services which took effect on Dec 1, 2024.
These guidelines recommend increasing the minimum price for deliveries under 2kg from RM4 to RM5.
Although Deputy Communications Minister Teo Nie Ching recently stated that these guidelines are not mandatory and merely serve as a reference for the industry, CCC Malaysia’s representative Tarmizi Anuwar argued that even though they may not be legally binding, such guidelines still harm the market and consumers.

“Although the government claims this is just a guideline and not a mandatory directive, courier companies can use these recommended prices to justify raising their service charges,” warned Tarmizi in a recent statement.
“This will burden consumers, especially small businesses and online sellers who rely on competitive shipping costs.”
Tarmizi went on to emphasise that this move reduces competition in the market as courier companies will no longer be incentivised to offer lower prices to attract customers.
As such. this will deprive consumers of the opportunity to access cheaper services and negatively impacts the growth of the e-commerce industry.
“If courier companies aren’t required to compete on pricing, they may be less motivated to enhance efficiency and service quality,” projected Tarmizi.
Tarmizi Anuwar“In the end, consumers will not only pay more but also fail to receive the service improvements they deserve.”
As it is, a study by Blackbox Research entitled Grasping the E-Commerce Opportunity in Southeast Asia found that delivery timeliness and high costs remain major concerns in rural areas and that this will directly affect the efficiency of e-commerce operations and consumer satisfaction in Malaysia.
“With the increase in the minimum delivery charge, rural consumers in remote Sabah and Sarawak where logistical access is already limited will face even higher costs without any guarantee of improved services,” lamented Tarmizi.
“This move not only raises costs for consumers but also doesn’t ensure any enhancement in service quality.”
He added: “Therefore, policies that focus more on competition and innovation within the courier industry should be prioritised to ensure more efficient and affordable services for consumers.” – Focus Malaysia

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