KUALA LUMPUR: The introduction of a standard minimum delivery fee has raised concern among small business owners, with the Malaysian Micro Businesses Association (Mamba) cautioning that the move could dampen online shopping activity and hinder the growth of local micro-entrepreneurs.

A guideline imposing a minimum charge of RM5 per parcel weighing 2kg and below came into effect on Dec 1, 2024, for all licensed last-mile delivery players.

Mamba said a nationwide survey of 720 online consumers revealed overwhelming opposition to the new fee structure, with 89.3% of respondents rejecting higher standard delivery rates. The majority indicated they would prefer the lowest possible shipping cost regardless of courier brand.

The survey further showed that 93.5% of respondents would likely reduce or even stop online shopping if delivery fees increased, while 59% said they would cut back on purchases should a minimum price be enforced.

Mamba secretary-general Alvin Low Wei Yan said the findings echoed concerns long raised by small sellers.

“We must avoid a situation where a well-meaning policy inadvertently sidelines the very micro-entrepreneurs the government is trying to uplift through the 13th Malaysia Plan (13MP),“ Low said in a statement.

He added that maintaining affordable and flexible delivery options is crucial to achieving the growth targets set for micro, small and medium enterprises under the 13MP.

“When shipping costs go up, the first to be affected are price-sensitive consumers and the small online sellers who rely on them. This directly undermines digital participation and income growth among micro and boutique sellers; the very groups the 13MP aims to support,” Low said.

The survey also found that 80.6% of respondents prioritise the lowest possible shipping cost, while 82.9% said they had no preference for courier brands as long as delivery remained affordable.

Additionally, 55.3% found current shipping prices reasonable, and a staggering 92.8% indicated they would not pay extra for faster courier services.

Mamba has urged policymakers and industry stakeholders to engage in further dialogue to ensure delivery pricing reforms are equitable, data-driven and do not create unnecessary barriers for small sellers or their customers.

“As we push forward with digital and SME development goals, the conversation around delivery fees must not lose sight of consumer realities and seller sustainability. Affordable logistics are the backbone of online commerce, especially for micro businesses,” Low said.