Southeast Asia presents a dynamic and complex market for retail entrants. Recent developments highlight two critical areas for businesses to monitor: the tightening of e-commerce regulations and the accelerating adoption of video commerce.
Understanding these trends is essential for effective market entry and sustained operation. Businesses must adapt their strategies to comply with new rules and capitalise on emerging sales channels.
E-commerce Regulation: The Malaysian Precedent
Malaysia is moving to impose new registration rules on e-commerce platforms. This follows 1,964 consumer complaints, indicating a need for greater oversight in the online retail space. Regulators will require online marketplaces to guarantee SIRIM electrical safety standards and verify halal claims.
This regulatory shift responds to a surge in consumer disputes. For businesses operating or planning to enter the Malaysian market, this means increased responsibility for product compliance and accurate product information. Platforms will need robust verification processes for sellers and products. This development sets a precedent for other Southeast Asian nations to consider similar measures, driven by consumer protection concerns.
The Rise of Video Commerce Across Southeast Asia
Video commerce now accounts for 20 per cent of Southeast Asia's e-commerce Gross Merchandise Value (GMV). This channel is rapidly transforming how brands engage with consumers and drive sales in the region. The growth pushes consumer brands to re-evaluate their platform dependency and manage operational impacts, such as rising return rates.
TikTok Shop, for example, doubled its US livestream sales and expanded broadcast sessions by 60 per cent in the first half of 2026, chasing the China model. While this specific data point is US-centric, it illustrates the global momentum of live commerce, a trend mirrored and amplified in Southeast Asia. This channel demands different content strategies and logistics capabilities from traditional e-commerce.
Navigating Market Entry and Expansion
For companies planning to enter Southeast Asian markets, regulatory compliance is a primary concern. The Malaysian example demonstrates that local authorities are prepared to intervene to protect consumers. Businesses must conduct thorough due diligence on local product standards, labelling requirements, and platform responsibilities.
Simultaneously, integrating video commerce into sales strategies is no longer optional. Brands need to invest in live streaming capabilities, influencer partnerships, and content creation tailored for this interactive format. They must also prepare for the operational challenges associated with higher engagement, such as managing increased customer inquiries and potential return volumes.
Operational Details for Retailers
When entering or expanding in Southeast Asia, specific operational details can catch entrants out. The Malaysian regulatory changes highlight the importance of understanding local product certification bodies, such as SIRIM, and religious compliance, like halal verification. Failure to comply can result in fines, product recalls, and reputational damage.
For video commerce, retailers should consider the infrastructure required for live streaming, including reliable internet access and local talent. They must also develop clear policies for returns and customer service that account for the interactive and often impulsive nature of live sales. The high percentage of e-commerce GMV from video commerce indicates a significant shift in consumer behaviour that requires a tailored operational response.
What to take away
- E-commerce platforms in Southeast Asia face increasing regulatory scrutiny, with Malaysia leading efforts to mandate product safety and halal verification.
- Video commerce now drives 20 per cent of Southeast Asia's e-commerce GMV, requiring brands to adapt sales and operational strategies.
- Market entrants must prioritise local regulatory compliance, including product standards and certifications, to avoid disputes and penalties.
- Retailers need to invest in video commerce capabilities and prepare for associated operational challenges like managing higher return rates.
Questions & Answers
Q.What specific regulations are being introduced in Malaysia for e-commerce?
What specific regulations are being introduced in Malaysia for e-commerce?
Malaysia will impose registration rules on e-commerce platforms, requiring them to guarantee SIRIM electrical safety standards and verify halal claims for products sold.
Q.How significant is video commerce in Southeast Asia?
How significant is video commerce in Southeast Asia?
Video commerce currently captures 20 per cent of the total e-commerce Gross Merchandise Value (GMV) in Southeast Asia, indicating its substantial and growing influence on online sales.
Q.What challenges does video commerce present for retailers?
What challenges does video commerce present for retailers?
Video commerce pushes consumer brands to overhaul platform dependency and manage rising return rates. It also requires investment in content creation, live streaming infrastructure, and specific customer service approaches.
Reporting behind this briefing
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