Pahang Youth Council proposes reducing TikTok Shop fees to 10-15% to ease the burden on MSMEs facing high operating costs and platform charges.

KUANTAN: The Pahang Youth Council has called for a restructuring of TikTok Shop fees to alleviate the financial strain on Micro, Small and Medium Enterprise (MSME) entrepreneurs.

Its president, Saharuddin Ahmad, said current platform charges, estimated at 20 to 25%, are placing significant pressure on profit margins.

He noted that the situation is compounded by rising costs for raw materials, logistics, and fuel, including diesel.

Geopolitical tensions, particularly in West Asia, have also disrupted supply chains and driven up operating expenses.

“In a high-cost environment, steep platform fees force entrepreneurs to either raise prices or absorb reduced margins,” he said in a statement.

This ultimately affects business competitiveness and sustainability, he added.

To address this, he proposed a phased reduction in platform charges to between 10 and 15%.

The suggested structure includes fees of 5 to 10% for micro enterprises, 10 to 12% for small enterprises, and 12 to 15% for medium-sized businesses.

He stressed that such measures are crucial for ensuring a fair and sustainable digital economy.

They would also enable local entrepreneurs to continue growing in a challenging environment, he said.

Saharuddin also called on the government to engage directly with digital platforms.

He urged the establishment of a dedicated committee on platform charges and a comprehensive study on the cost impact faced by MSMEs.

“Digital platforms play a key role in economic growth, but there must be a balance,” he said.

This balance is needed between platform expansion and the survival of entrepreneurs for more equitable benefits, he added.

 The Sun Malaysia