Kuala lumpur: The Ministry of Domestic Trade and Cost of Living (KPDN) is seeking greater coordination to strengthen enforcement against business practices that contravene competition rules among online travel agencies (OTAs).

According to BERNAMA News Agency, Minister Datuk Armizan Mohd Ali emphasized the need for enhanced collaboration involving the Malaysia Competition Commission (MyCC), the Ministry of Tourism, Arts and Culture (MOTAC), and the Malaysian Communications and Multimedia Commission (MCMC). A market review has indicated that certain business practices among OTAs may violate the Competition Act 2010 (Act 712), a trend noted by competition authorities in countries like Hong Kong, Japan, and China.

The minister stated that a joint investigation across agencies, led by MyCC, is necessary, especially concerning issues of price parity and commission fee structures. These practices not only impose a burden on hotels and travel agents but also potentially limit consumer access to better deals, affecting the growth of the local tourism industry. The market review will be presented to the Cabinet for further consideration.

The review includes 18 recommendations, with three key proposals requiring immediate government action. These include the establishment of a Central Digital Economy Task Force to address regulatory and legislative gaps, enhancing cross-ministry and agency monitoring and enforcement. Additionally, the data on Service Tax on Digital Services (SToDS) showed an increase to RM1.62 billion in 2024 from RM802 million in 2021. However, a significant potential annual tax contribution gap remains due to differences in tax rates between digital platforms and local businesses.