KUALA LUMPUR, Jan 22 — The Domestic Trade and Cost of Living Ministry (KPDN) is reviewing existing guidelines on the involvement of foreign companies in the trade distribution sector and is in the final stages of amending the Electronic Commerce Act 2006, aimed at ensuring fairer competition for local micro, small, and medium enterprises (MSMEs).
Its deputy minister Datuk Fuziah Salleh said they recognised shortcomings in the 2020 guidelines, which have become more apparent amid the swift influx of foreign food and beverage (F&B) brands adopting the speciality store model.
“We found that most of these foreign F&B brands entered the market rapidly, particularly in 2024. As such, there is a need for us to improve, review, and further study the guidelines developed in 2020,” she said during the question-and-answer session at the Dewan Rakyat sitting today.
Fuziah was responding to Ampang MP Rodziah Ismail's query on the steps that have been, are being, and will be taken to curb the aggressive expansion of foreign F&B brands in the country, as well as the practices of e-commerce platforms that distort market prices by offering extremely competitive pricing, potentially threatening the survival of local MSMEs.
Regarding e-commerce, she said amendments to the Electronic Commerce Act 2006 or the drafting of new legislation are expected to be tabled at the next Parliament sitting.
“In conclusion, there must be a balance in strengthening the competitiveness of MSMEs to ensure fair competition. To achieve this, the KPDN must collaborate with other relevant agencies, not merely to provide passive protection, but to actively develop the local industry and enhance its competitiveness.
“At the same time, we should not close the market but instead encourage healthy competition to safeguard consumers. InsyaAllah (God willing), we will ensure this balance and create a fairer ecosystem,” she said.
