KUALA LUMPUR: The government will review guidelines on the entry and operations of foreign businesses in Malaysia following the rapid growth of overseas food and beverage (F&B) companies locally, the Dewan Rakyat was told.
Deputy Domestic Trade and Cost of Living Minister Datuk Dr Fuziah Salleh said this aims to protect local businesses and ensure they remain competitive in an increasingly congested business ecosystem.
The present guidelines were developed in 2020, she noted.
Among them are that a company must have at least RM1mil in capital, get approval from a special committee before starting operations, and conduct an impact assessment for stores larger than 5,000sq m.
"The mushrooming of these new businesses occurred in 2024.
"We are reviewing the guidelines to ensure they align with developments," she said during Question Time in the Dewan Rakyat on Thursday (Jan 22).
Rodziah Ismail (PH-Ampang) had asked about steps taken to control the aggressive growth of foreign F&B outlets locally, alongside extremely competitive prices on e-commerce platforms that potentially threaten the continuity of local businesses.
Fuziah also said the review would focus on the requirement for impact assessments.
"Most of the overseas chains that open locally occupy lots that are less than 5,000sq m.
"We acknowledge there are loopholes and will improve on the guidelines," she said.
She stressed that multiple ministries need to be involved in developing competitiveness among local micro, small and medium enterprises.
"Any 'protective' efforts should be aimed at uplifting our local businesses without closing our market to others.
"Ensuring this competitiveness, however, always remains a challenge," she added.
Separately, Fuziah said the government is finalising amendments to the Electronic Commerce Act 2006.
"The only question now is whether we will amend the existing Act or bring forward a new legislation altogether.
"The goal is to ensure fair competition on e-commerce platforms, not just for traders but also consumers and others," she said.
