From App to E-Commerce Giant: the Fast Rise of Tiktok Shop in Malaysia

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Growth has not come without friction. Malaysia’s Ministry of Domestic Trade and Cost of Living (KPDN) keeps the platform under scrutiny over unlicensed health supplements, unregistered cosmetic serums, and intellectual property infringement.

Consumer complaints surged regarding flash-sale operations that dispatched substandard items before disappearing from the registry. In response, TikTok Shop updated its merchant compliance rules in 2025, mandating strict verification through Suruhanjaya Syarikat Malaysia (SSM) business filings and boosting escrow payout periods from 3 days to 7 days. This safeguard protects shoppers against fraudulent fly-by-night accounts, though it squeezes the working capital of smaller merchants who depend on immediate cash flow.