KOTA KINABALU: The National Consumer Foundation Malaysia (YPNM) Sabah Chapter has called on the Federal Government to strengthen protections for local businesses, warning that many are struggling to compete with large foreign companies.
Its chairman David Chan said foreign investments remained important for economic growth, technology transfer and job creation, but local businesses should not be sidelined in the process.
"We appreciate Prime Minister Datuk Seri Anwar Ibrahim's concern for and attention to the challenges currently faced by local businesses, contractors and small and medium enterprises (SMEs) in Malaysia," he said in a statement on Tuesday (June 9).
Chan said local traders, contractors and business operators were facing mounting pressure from foreign firms with extensive supply chains, manufacturing capabilities and stronger financial resources.
Referring to China as one of Malaysia's largest manufacturing and export partners, he said foreign companies often enjoyed pricing advantages and economies of scale that local businesses could not easily match.
"As a result, many local companies risk losing market opportunities, financial turnover and long-term business sustainability," he said.
He warned that without appropriate safeguards, local entrepreneurs and contractors could gradually lose opportunities in their own country, including jobs for local workers and young Malaysians entering the workforce.
Chan said the same concerns extended to sectors such as tourism, retail, construction and services.
"While foreign participation can contribute positively to economic activity, local participation and local job opportunities must remain protected and prioritised to ensure balanced and inclusive economic growth," he said.
He urged Putrajaya to introduce fair business criteria, regulatory mechanisms and protection policies that would safeguard local businesses while continuing to attract quality foreign investments.
Among the measures proposed were prioritising local participation and joint ventures involving Malaysian companies, ensuring local contractors and suppliers were given fair opportunities in major projects, implementing reasonable local employment quotas, encouraging technology transfer and skills development, and strengthening financing access for SMEs and local entrepreneurs.
"Foreign investment and local economic protection can coexist under a fair win-win approach that benefits both investors and the rakyat.
"Economic growth must not only focus on investment numbers, but also on ensuring that Malaysians continue to have sustainable business opportunities, stable employment and long-term economic security," Chan said.
