KPDN is updating 2020 guidelines for foreign firms and finalising amendments to the Electronic Commerce Act 2006 to ensure fair competition for local MSMEs.
KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living is reviewing existing guidelines on foreign involvement in the trade distribution sector.
Deputy Minister Datuk Dr Fuziah Salleh said the ministry is also in the final stages of amending the Electronic Commerce Act 2006.
The moves are aimed at ensuring fairer competition for local micro, small and medium enterprises.
Fuziah said shortcomings in guidelines formulated in 2020 have become more apparent amid a swift influx of foreign food and beverage brands.
“We found that most of these foreign F&B brands entered the market rapidly, particularly in 2024,” she said in Parliament.
She said this necessitates a review and further study of the existing guidelines.
Her response was to a question on steps to curb aggressive foreign F&B expansion and e-commerce platforms offering extremely competitive pricing.
On e-commerce, Fuziah said amendments to the 2006 act or new legislation are expected at the next Parliament sitting.
She concluded that a balance is needed to strengthen MSME competitiveness while ensuring fair competition.
This requires collaboration with other agencies to actively develop the local industry.
“We should not close the market but instead encourage healthy competition to safeguard consumers,” she said.
