HK Consumer Council and FOMCA ink deal to resolve cross-border consumer disputes

Hong Kong Consumer Council (HKCC) and the Federation of Malaysian Consumers Association (FOMCA) has signed a memorandum of understanding (MOU) for collaboration on cross-border consumer disputes. 

This agreement aims to establish an information exchange and complaint referral mechanism, strengthening cooperation between the two parties in resolving cross-border consumer disputes.

As the fifth MOU that the HKCC has signed with a consumer body in Asia, following similar agreements with the Korea Consumer Agency in 2017, the National Consumer Affairs Centre of Japan in 2018, the Consumers Association of Singapore (CASE) in 2019, and the Thailand Consumers Council (TCC) in 2024, this MOU together with the other four underscore a shared commitment in enhancing protection for consumers in the region and boosting consumer confidence.

Under the agreement, residents of either Hong Kong or Malaysia involved in consumer disputes with traders in the other party’s territory may lodge complaints with their local consumer body upon returning to their place of residence.

With the complainant’s prior consent, their local consumer body can refer the details and relevant documents of the complaint case to the other consumer body, which would then assist the consumer in resolving the dispute.

If the trader responds or proposes a settlement, the respective consumer body will communicate the outcome to the complainant’s local consumer body, which will then inform the complainant. This exchange mechanism could effectively eliminate past obstacles, such as language, geographical, and jurisdictional barriers, that have left consumer complaints unresolved.

The HKCC and FOMCA firmly believe that the cross-border consumer dispute referral mechanism established by this MOU will streamline the resolution of disputes and compensation claims for consumers returning their place of residence. Moving forward, it will also foster the robust growth of the tourism and retail sectors in both Hong Kong and Malaysia, injecting vital momentum into the economies of both regions.

As a partner country in the Belt and Road Initiative, Malaysia shares longstanding cultural, trade, and tourism connections with Hong Kong. In 2024, Malaysia was Hong Kong’s 8th largest trading partner, accounting for approximately 2.2% of the city’s total trade value, according to the council. 

According to the Hong Kong Tourism Board, over 405,500 Malaysian tourists visited Hong Kong in 2024, a year-on-year increase of almost 50%, reflecting Hong Kong’s appeal as a travel destination. At the same time, given the popularity of Malaysia as a travel hotspot among Hong Kong people, Malaysia extended the visafree entry period for Hong Kong passport holders to 90 days beginning in 2023 to further facilitate travel.

Cross-border consumption encompasses a wide array of goods and services, from local delicacies and souvenirs to flights and accommodation, often involving significant monetary values. However, disputes can arise in any form of consumption, and without effective means of redress, consumers may face financial losses. Between 2022 and May 2025, the council received 15 complaints related to Hong Kong residents travelling in Malaysia, nearly half of which (6 cases) were related to service quality.

Meanwhile, there were 47 complaint cases from Malaysian tourists visiting Hong Kong, with approximately 30% (15 cases) involving sales practices, followed by delay or non-delivery of goods or services (8 cases).

Tony Pang Chor-fu, vice-chairman of the Hong Kong Consumer Council, noted that consumers often face obstacles in seeking timely redress with local consumer bodies due to tight schedules and language barriers, along with the complexities of cross-border claims, which had led some of them to acquiesce upon returning home, “It would be very challenging for them to pursue claims afterwards due to the geographical location, differences in languages, cultures, as well as legislation and business practice.”

Saravanan Thambirajah, CEO of the FOMCA, emphasised the increasing prevalence of disputes related to e-commerce and cross-border online spending in recent years. He anticipated that the MOU will enhance the ability to address and resolve cross-border consumer disputes, “As consumers from both Malaysia and Hong Kong continue to engage in cross-border digital commerce, we must ensure that there are systems in place for timely, fair, and transparent complaint resolution."

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