Below is a practical, step‑by‑step guide to creating an e‑commerce website for doing business in Malaysia — from planning and legal setup to launching, selling, and staying compliant. I’ve highlighted the key regulatory points and included official/authoritative sources for the most important requirements.

1. Decide what you’ll sell and your target market

• Choose product categories, suppliers (local vs. imported), retail pricing and margins, and who your customers are (age, location, device habits).
• Assess whether products need licences (food, cosmetics, healthcare, controlled items) from relevant ministries or local councils.

2. Choose business structure and register with SSM (Companies Commission)

• Common choices: sole proprietorship, partnership, or private limited company (Sdn. Bhd.). Sdn. Bhd. gives liability protection but has higher setup and compliance burdens. Sole proprietorship is simpler (and restricted to Malaysian citizens/PRs). Register via SSM’s ezBiz / MyCoID portals. Fees vary by type (example: RM30–RM60 for sole proprietorship; Sdn. Bhd. higher). (Deel.com)

3. Tax registration and understanding sales taxes

• Register with LHDN (Inland Revenue) for income tax after you start trading.
• Be aware of Malaysia’s indirect tax regime: SST (Sales & Service Tax) is applicable to many goods/services. Note: Malaysia expanded/revised sales/service tax rules in 2025 — review current Customs/Ministry guidance for which goods/services and thresholds apply before you set pricing. (Check the latest Royal Malaysian Customs/finance ministry guidance before launch.) (Reuters.com)

4. Data protection & privacy (PDPA)

• Malaysia’s Personal Data Protection Act (PDPA) applies to commercial processing of personal data. You must follow PDPA principles (notice/consent, security, retention, access, etc.), prepare a privacy policy, secure customer data, and have agreements with third‑party processors (payment gateway, fulfilment partners). Recent amendments strengthen enforcement and breach notification obligations — ensure DPO/registration and breach procedures are ready. (malaysia.incorp.asia)

5. Choose platform & technology stack Options (common choices):

• Hosted SaaS: Shopify (fast, less technical), Wix, Squarespace — good for quick launches and integrated payments/shipping apps.
• Self‑hosted: WooCommerce (WordPress) — flexible, cheaper hosting but needs maintenance; Magento/Adobe Commerce — powerful for large stores.
• Marketplaces: Lazada, Shopee — for additional sales channels in Malaysia. Pick based on budget, technical skills, customization needs, and expected traffic.

6. Domain, hosting, and SSL

• Buy a .com.my (if you want Malaysia identification) or .my/.com domain from a registrar.
• Choose reliable hosting or cloud provider sized to traffic; enable HTTPS (TLS/SSL) — mandatory for payment pages and PDPA security expectations.

7. Payments: gateways & wallets

• Integrate Malaysian‑friendly payment options: local bank card acquiring, popular payment gateways (iPay88, eGHL, Xendit/others — check current providers and pricing), and DuitNow / DuitNow QR, major e‑wallets (Touch ‘n Go eWallet, GrabPay) if you want higher conversion. Offer card, FPX (online banking), e‑wallets and cash‑on‑delivery if appropriate. Compare transaction fees, settlement times, contract terms, and required documentation (SSM certificate, bank account, director IDs). (Confirm current provider list/pricing before signing.) (conzlab.com)

8. Shipping & fulfilment

• Decide on in‑house fulfilment vs. 3PL. Common Malaysian couriers used by e‑commerce sellers include Pos Malaysia, J&T Express, Ninja Van, GDEX and others — compare rates, coverage for East Malaysia (Sabah/Sarawak), tracking APIs, COD support, and return handling.
• Implement shipping rules (weight/volume, zones, free shipping thresholds) and automated label printing if possible. (conzlab.com)

9. Legal pages, consumer rights & returns policy

• Prepare clear Terms & Conditions, Privacy Policy (PDPA‑compliant), Returns & Refund policy, Delivery terms, and Contact info. Malaysian consumer protection laws apply — be transparent about returns, warranties and merchant details.

10. Security & fraud prevention

• Use HTTPS, keep platform and plugins up to date, apply strong admin passwords and 2FA.
• Implement fraud checks (address verification, velocity checks, CVV verification) and consider manual review for high‑value orders.
• Ensure payment provider and any third‑party processors have adequate security and data processing agreements for PDPA compliance. (malaysia.incorp.asia)

11. UX, product pages & checkout optimisation

• High‑quality product photos, short compelling descriptions, clear pricing (include tax/shipping), size guides, stock indicators, and social proof (reviews).
• Keep checkout short; show total cost early; provide multiple payment options and a visible trust seal/SSL lock.

12. Marketing & customer acquisition

• SEO: product keyword research, fast page load, structured data for product pages.
• Paid channels: Meta (Facebook/Instagram) ads, Google Shopping, TikTok ads; remarketing is important.
• Email & CRM: collect emails (with PDPA consent), set abandoned‑cart flows, post‑purchase follow‑ups.
• Local strategies: marketplace cross‑listing (Shopee, Lazada), influencer marketing and seasonal campaigns (e.g., Ramadan, Merdeka, 11.11).

13. Analytics, reporting & finance

• Set up Google Analytics / GA4, conversion tracking and e‑commerce events.
• Integrate bookkeeping/accounting software; keep accurate records for tax filing and cashflow.
• Reconcile payment gateway settlements, refunds fees, and shipping costs.

14. Testing & soft launch

• Test purchase flows, mobile responsiveness, payment settlement, shipping label generation, email notifications, and returns process. Soft launch to a small audience before full marketing push.

15. Ongoing compliance & scale

• Renew SSM registration yearly; keep tax filings up to date with LHDN.
• Monitor PDPA guidance and SST / tax law updates; implement any required changes (breach notification, DPO appointment, data portability procedures).
• Scale infrastructure, add caching/CDN, and consider a dedicated developer or agency when growth requires custom features.

Helpful official/authoritative resources (start here)

• Companies Commission of Malaysia (SSM) — business registration & portals (ezBiz / MyCoID). (grof.co)
• Personal Data Protection Department (JPDP / PDPC) — PDPA guidance and registration. (pdp.gov.my)
• Finance / Customs / Royal Malaysian Customs and official notices — for SST / indirect tax rules (note: tax rules expanded July 1, 2025 — check latest guidance). (Reuters.com)

Quick checklist to get started this week

• Select products and validate demand (simple market test).
• Register business with SSM (sole proprietor or Sdn. Bhd. depending on plan). (Deel.com)
• Buy domain, pick a platform (Shopify or WooCommerce recommended for first store).
• Set up merchant account / payment gateway (prepare SSM certificate and bank details).
• Configure shipping, create privacy policy/terms, and add SSL.
• Test end‑to‑end purchase, then launch with a small ad budget.

If you want, I can:

• Recommend a platform and estimate costs for a typical Malaysian small/medium e‑commerce store (monthly fees, payment gateway fees, hosting).
• Draft templates for Privacy Policy / Terms & Conditions tailored to Malaysian PDPA.
• Suggest a shortlist of payment gateways and couriers to compare (I can include links and typical fees).

Which follow-up would be most useful: platform recommendation + cost estimate, or ready‑to‑use legal page templates (privacy + T&Cs) for Malaysia?