E-imports squeeze native merchants | The Star

PETALING JAYA: Ordering straight from abroad has by no means been simpler. Drawn by rock-bottom costs, doorstep supply and computerized consolidated delivery, Malaysians are flocking to cross-border e-commerce giants for every part from devices to sofas.

The surge of platforms like Temu and Pinduoduo is rewriting client habits and squeezing home merchants.

Now native retailers are sounding the alarm, demanding authorities intervention to degree the enjoying discipline earlier than they’re priced out solely.

Malaysia Retail Chain Association (MRCA) president Datuk Liew Bin stated large-scale abroad platforms are creating an uneven enjoying discipline for native retailers and small and medium enterprises (SMEs).

“The question is how local businesses can compete when overseas platforms can sell directly to consumers at such low prices. Without proper measures, SMEs will die standing,” he stated when contacted.

Official Department of Statistics Malaysia (DOSM) information underlines this digital shift. E-commerce transaction revenue reached RM1.288 trillion in 2024, a rise of 8.8% from the earlier yr, reflecting the rising adoption of digital commerce.

The shift has been underpinned by widespread Internet connectivity.

DOSM reported that 97.1% of Malaysian households had Internet entry in 2025, whereas 98.3% of people had been Internet customers, offering a robust basis for the continued development of on-line buying and digital transactions.

The digital financial system has additionally continued to broaden because the Covid-19 pandemic accelerated the adoption of e-commerce.

DOSM information reveals e-commerce income for the primary 9 months of 2025 edging up 1.3% to RM937.5bil, whereas on-line spending surged 7.5%, climbing from RM531.6bil to RM571.4bil in comparison with the earlier yr.

Liew referred to as for a fairer regulatory framework, urging the federal government to introduce stricter safeguards and obligatory product screening to degree the enjoying discipline for home merchants.

He highlighted excessive value undercutting as the first menace, citing a pair of earphones priced at RM50 in a neighborhood store that sells for simply RM2.30 – doorstep supply included – on Pinduoduo.

“They sell furniture, electronic items or even coffins and other products that can be sent directly to customers’ homes,” Liew stated.

“Of course, consumers must be selective when shopping on these platforms.

“Cheap does not always mean good quality,” he added.

Liew famous a speedy surge in imports from China, with roughly 150 containers arriving every day to satisfy rising demand for cut price items.

Electronics, cosmetics, and normal retail and wholesale commerce are bearing the brunt of the inflow.

SME Association of Malaysia president Dr Chin Chee Seong echoed these considerations, warning that home small companies face mounting pressure.

“These platforms can offer products at prices that many local businesses simply cannot match because of their massive economies of scale, highly efficient supply chains and aggressive pricing strategies,” Chin stated.

To survive, he urged native SMEs to capitalise on their strengths – specializing in product authenticity, superior high quality, speedy native supply and reliable after-sales assist.

Rather than proscribing free commerce, Chin argued that the federal government should implement a degree enjoying discipline by subjecting cross-border giants to native tax, customs and regulatory guidelines.

“This would promote fair competition, protect tax revenue and prevent Malaysian SMEs from being placed at a disadvantage,” he added.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated technological advances have intensified competitors, giving customers extra selections and decrease costs.

“Consumers benefit from greater choice and improved purchasing power, but intense competition can marginalise local businesses that lack the scale and technology to compete.

“The challenge for policymakers is to strike a balance between preserving competition and ensuring foreign platforms comply with the same tax, regulatory and product standards as local businesses,” he stated.

Federation of Malaysian Consumers Associations (Fomca) chief government officer T. Saravanan stated that whereas decrease costs and heightened competitors profit buyers, abnormally low cost items ought to function a purple flag concerning security, high quality and regulatory compliance.

He stated each Fomca and the National Consumer Complaints Centre have logged a gradual stream of grievances involving on-line buys, notably defective electrical home equipment, questionable cosmetics and objects that fail to match their descriptions.

While these complaints span numerous platforms, Saravanan careworn that the speedy growth of cross-border marketplaces makes strict oversight of regulated items important.

“Online marketplaces must verify sellers, remove non-compliant listings promptly, respond effectively to complaints and cooperate with Malaysian regulators,” he stated, insisting that overseas retailers adhere to the identical requirements as native sellers.