PETALING JAYA: Local trade groups are demanding stricter enforcement of taxes, safety standards and import regulations on cross-border e-commerce platforms to protect domestic businesses.
Malaysia Retail Chain Association (MRCA) President Datuk Liew Bin said foreign platforms such as Temu and Pinduoduo are heavily undercutting the retail sector, with the fashion industry hit hardest.
“Retailers, particularly in fashion, are facing severe pressure,” Liew said, urging swift government intervention.
He noted that 20% to 30% of physical outlets have felt the pinch, while roughly half of MRCA members’ online stores have suffered sales slumps.
“Cross-border platforms must be required to register locally so their products can be properly regulated,” he added.
Liew also raised safety concerns over uncertified electrical appliances and medication sold online without approval from Sirim or the Health Ministry.
Echoing these sentiments, SME Association of Malaysia President Dr Chin Chee Seong urged authorities to hold foreign products to the same regulatory standards as local goods.
“Malaysian SMEs cannot compete purely on price with massive cross-border platforms leveraging global scale and hyper-efficient supply chains,” Chin said.
“Low-priced imports are particularly affecting micro and small retailers selling general consumer products, forcing businesses to either cut prices or risk losing sales.”
He said this could further squeeze profit margins, with some businesses potentially having to downsize, change their business models or leave the market.
Chin noted that the focus should be on enforcing the 10% sales tax on qualifying low-value goods priced at RM500 or below that are sold online from abroad.
He stressed that SMEs were not opposed to foreign competition.
“We are not asking the government to stop foreign platforms or restrict consumer choice.
“We are asking for fair and equal competition so that Malaysian SMEs have a reasonable opportunity to compete, grow and create jobs here,” he said.
Federation of Malaysian Manufacturers (FMM) president Jacob Lee said local manufacturers were facing growing competition from low-cost cross-border imports.
Lee highlighted vulnerable categories including electronics, apparel, footwear, plastics, cosmetics and furniture.
“Unchecked price undercutting compresses margins and starves manufacturers of capital needed for automation, R&D and quality upgrades,” Lee said, adding that cheap imported components also undermine local industrial suppliers.
“FMM believes enforcement should focus on creating a level playing field rather than targeting specific apps. Consistent regulation enables local manufacturers to compete on quality, innovation and service rather than a race to the bottom on price,” he said.
