MALAYSIAN manufacturers, particularly micro, small and medium enterprises (MSMEs), face growing pressure from cheaper imported goods as higher domestic production costs make it harder for them to compete on price.
Federation of Malaysian Consumers Associations (FOMCA) chief executive officer Dr Saravanan Thambirajah said imported products could be cheaper because of lower labour and production costs, mass manufacturing, more efficient technology, competitive supply chains, exchange rates and aggressive marketing through e-commerce platforms.
He said cheaper imports were not inherently a threat, as healthy competition could benefit consumers through more affordable prices and a wider choice of products.
The concern, however, was when imports were sold at artificially low prices through unfair competition or product dumping, or failed to meet safety and quality standards.
“This could affect local manufacturers, employment opportunities and the sustainability of the country’s industries,” he said.
Saravanan said all imported goods should meet the same safety, quality and regulatory requirements as locally produced items, stressing that a low price did not necessarily indicate poor quality.
He called on the government to help local industries improve productivity, adopt technology and increase production efficiency so they could compete without relying excessively on market protection measures.
The Domestic Trade and Cost of Living Ministry and the Malaysia Competition Commission should also strengthen price monitoring, improve supply-chain transparency and investigate possible price manipulation or anti-competitive practices, he said.
“Goods imported at low prices should not be sold to consumers at unreasonable prices because of excessive profit margins along the supply chain.
“FOMCA supports healthy market competition, but it must be fair to local industries and consumers, while ensuring product safety and keeping goods affordable for the people,” he said.
The issue follows a report by the newspaper that continued reliance on cheaper imported products could undermine local manufacturers and increase Malaysia’s dependence on foreign suppliers over the longer term.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani had warned that domestic producers could lose their ability to operate if they were unable to compete with imported products. - October 14, 2026
