KUALA LUMPUR: Overseas manufacturers selling cheap goods directly to Malaysian consumers through e-commerce platforms are putting local businesses at a disadvantage, the Dewan Rakyat was told today.
Syed Saddiq Syed Abdul Rahman (Muda-Muar) said foreign manufacturers could undercut Malaysian businesses because they did not face the same operating costs and regulatory requirements as local companies.
These included taxes, minimum wage requirements and statutory contributions to the Employees Provident Fund (EPF) and Social Security Organisation (Socso), he said.
"Malaysian entrepreneurs are not asking for government handouts. They are not asking for competition to be shut down entirely. They only want fairness so they can compete on a level playing field," he said during the policy-stage debate on the 2027 Budget in the Dewan Rakyat.
Syed Saddiq proposed requiring foreign e-commerce operators to establish a local presence or collaborate with Malaysian businesses, saying this would also enable authorities to take action against defective or unsafe products.
He also urged the government to expedite its proposed e-commerce legislation to strengthen safeguards for local businesses, including requiring platforms to give advance notice before increasing fees and consult affected sellers.
He said the situation was compounded by rising charges imposed by major e-commerce platforms, including TikTok and Shopee, which he claimed had increased commission rates and other fees without sufficient notice.
"No prior notice, no prior warning," he said, warning that sudden increases could severely affect small businesses operating on thin profit margins.
Syed Saddiq described the situation as a "sandwich generation" problem for young entrepreneurs, who were being squeezed between cheap foreign competition and rising platform charges.
He warned that failure to address these pressures could force more small businesses to close despite improving economic indicators.
© New Straits Times Press (M) Bhd