Fair play for local businesses

TRADE and Industry Minister Datuk Seri Johari Abdul Ghani has sounded a timely warning about the country’s growing dependence on imports, particularly from China.

His call for drastic action to strengthen domestic manufacturing deserves serious consideration.

But the bigger question is whether Malaysia should protect local businesses from foreign competition or compel them to become more competitive.

The growing presence of Chinese businesses in Malaysia extends beyond manufactured goods.

From construction and interior design to automotive services and last-mile delivery, financially strong foreign entrants are challenging established local players, often through lower prices, longer operating hours and digitally enabled services.

This raises legitimate questions about whether Malaysia has been too liberal in granting operating licences to foreign-owned businesses, particularly where local entrepreneurs face unequal financial and regulatory conditions.

The authorities need to study to see if any predatory dumping is taking place.

Dumping, in international trade, generally refers to imported goods sold below their normal value, while predatory pricing involves deliberately selling below cost to eliminate competitors. Or could it be legitimate price competition?

Malaysia must remain vigilant against foreign players using deep financial resources to sustain artificially low prices, drive out local competitors and eventually dominate markets.

On the other hand, Malaysian consumers have benefitted from greater competition through lower prices, better convenience, improved service standards and digital innovation.

These are precisely the areas where many local businesses must improve.

Indeed, Malaysian companies that can match foreign competitors on price, quality, convenience and customer experience should have a natural advantage through their local knowledge, relationships and brand familiarity.

The government’s responsibility, therefore, is not to shield inefficient businesses from competition, but to ensure a level playing field.

This means enforcing licensing requirements, tax compliance, labour regulations and competition laws equally, while strengthening local manufacturers and small and medium enterprises through technology adoption, financing and productivity improvements.

Johari’s warning should be a wake-up call for both policymakers and Malaysian businesses.

Malaysia must not become merely a marketplace for foreign enterprises.

But neither should it become a protected sanctuary for uncompetitive local businesses.

The ultimate objective must be a stronger Malaysian business ecosystem capable of competing fairly, innovating continuously and winning customers on merit.