Kuala lumpur: The Ministry of Domestic Trade and Cost of Living (KPDN) is in the process of reviewing existing guidelines for foreign company involvement in the trade distribution sector. It is also nearing the final stages of amending the Electronic Commerce Act 2006. This initiative aims to ensure fairer competition for local micro, small, and medium enterprises (MSMEs).

According to BERNAMA News Agency, Deputy Minister Datuk Dr. Fuziah Salleh acknowledged the limitations of the guidelines formulated in 2020. The rapid influx of foreign food and beverage brands, particularly in 2024, has highlighted these shortcomings. The foreign brands have been quick to adopt the specialty store model, prompting the need for a thorough review and improvement of the existing guidelines.

Fuziah made these remarks during a question-and-answer session at the Dewan Rakyat. She was responding to inquiries from Rodziah Ismail (PH-Ampang) regarding measures to address the aggressive expansion of foreign F and B brands. The concerns also extended to the pricing practices of e-commerce platforms that could potentially harm the survival of local MSMEs by offering extremely competitive pricing.

Regarding e-commerce, Fuziah mentioned that amendments to the Electronic Commerce Act 2006, or possibly new legislation, are anticipated to be presented at the next parliamentary session. The aim is to strengthen MSME competitiveness while ensuring fair market conditions.

Fuziah emphasized the necessity of balancing MSME competitiveness and consumer protection. She highlighted the importance of collaboration with relevant agencies to develop and enhance the local industry, rather than merely providing passive protection. The goal is to encourage healthy competition and create a fairer market ecosystem for all stakeholders.