PETALING JAYA: Malaysia’s small businesses may be thriving on TikTok but academics warn the country is at the mercy of global power struggles that could upend the platform overnight.
While Washington pressures TikTok’s Chinese parent company ByteDance to divest its US operations, experts said the standoff underlines a hard truth – Malaysian entrepreneurs are building their livelihoods on a platform the country cannot control.
Universiti Utara Malaysia international entrepreneurship specialist Dr Norsafinas Md Saad said the lesson was clear – dependency equals vulnerability.
“We saw this when Indonesia temporarily banned TikTok Shop in 2023 and when India banned TikTok in 2020. Overnight, thousands of sellers lost their sales channels,” she told theSun.
Norsafinas said Malaysia faces a “sovereignty paradox”, in which its massive user base gives TikTok reach and profits, but little influence over how the platform evolves.
“Malaysia, despite being a major user base, has limited influence. A change in TikTok’s algorithm or ownership triggered by foreign intervention could sharply disrupt how local businesses gain visibility and income,” she said.
She urged policymakers to treat platform dependence as a structural risk.
“Diversification must mean more than just trying other apps. It requires incentives, cross-platform tools and better data portability, so SMEs are not locked into one gatekeeper.”
Norsafinas added that lessons from abroad show the need for both regulatory foresight and SME capacity-building.
Universiti Teknologi Mara mass communication expert Assoc Prof Dr Tengku Elena Tengku Mahamad echoed the warning, saying SMEs must understand that TikTok’s fast reach comes with hidden risks.
“SMEs choose TikTok because it gives fast visibility, but if the rules or ownership change, they could lose that overnight.
“The safer approach is to use TikTok for reach while also telling their stories and connecting with customers on other platforms,” she said.
Tengku Elena stressed that the solution was not to build another large local platform, but to strengthen SME adaptability.
“The government and industry bodies should support SMEs through capacity building – teaching them how to communicate across different platforms, adapt their marketing and use data effectively.
“When global platforms shift their algorithms, they also shift which stories, businesses and communities get visibility,” she said.
Universiti Kebangsaan Malaysia media and communication researcher Dr Mohd Azul Mohama Salleh said many SMEs and young entrepreneurs in Malaysia were not digitally mature enough to survive sudden disruptions.
“If TikTok changes its algorithm to emphasise paid advertising, SMEs could quickly lose customers.”
Mohd Azul said TikTok’s strength lay in its mix of entertainment and
e-commerce, giving SMEs low-cost access to millions through its For You Page.
“SMEs must build their own assets – websites, customer email databases, direct channels – so they are not entirely at the mercy of a single platform.
“Malaysia should develop an algorithm oversight framework to regulate how platforms promote SME businesses.
“Rules should ensure SMEs get advance notice before algorithm changes are implemented to protect them from sudden shocks,” he said.