DATUK SERI (DR.) ENG WEI CHUN – FOREIGN COMPETITION IN MALAYSIA
Lately, many local business owners have been expressing concerns over how rapidly they are losing customers. “The new store/restaurant next door, owned by foreign entrepreneurs, has cheaper prices and better promotions. We just can’t compete.” Such complaints are becoming increasingly common, not only within the food and beverage industry but also in beauty services, e-commerce, photography, renovation, and tourism. Undoubtedly, Malaysia is facing an intensely competitive new normal.
In recent years, with the restructuring of global supply chains, Malaysia is no longer competing with just one country but is facing a multifaceted impact from across Asia. The rapid growth of countries such as China, Thailand, Vietnam, and Indonesia in technology, capital, and talent is continually changing the landscape of local industries. At the same time, more foreign workers and businesses are entering the Malaysian market, competing with local businesses in various industries, creating a slow but steady pressure similar the “frog in boiling water” effect.
The e-commerce and live-streaming sales sectors have also seen tremendous changes. A large number of Asian sellers, influencers, and content creators have entered Malaysian platforms, utilizing TikTok, Xiaohongshu (Little Red Book), and Instagram for cross-border sales. Leveraging price advantages, logistics channels, and short video marketing techniques, they has reshaped local consumer shopping behavior. Local small and medium-sized e-commerce businesses are struggling to keep up with this business model.
The tourism service industry has also experienced a shift due to the movement of personnel. With the post-pandemic recovery of tourism, many foreign tour guides, translators, and private travel operators have started offering services in Malaysia, especially targeting Chinese-speaking tourists. These providers, who are familiar with traveler preferences and offer more flexible itinerary designs, have attracted some tourists to bypass local tour agencies and book directly. This not only impacts licensed local guides but also adds challenges to industry regulation.
The traditional Chinese medicine and therapy industries are facing similar pressures. Practitioners from China, Taiwan, and Thailand are offering various traditional healing services, including moxibustion, gua sha, cupping, and massage, attracting health- conscious consumers. While these services offer variety, they also present regulatory challenges, especially when some practitioners lack the necessary licenses or standardized procedures, which can affect the overall professional image of the industry.
Facing these challenges, Malaysia’s people are experiencing the “boiling frog” effect. We cannot avoid the impact brought about by the opening up of international markets. The opening of international markets brings opportunities, but it inevitably also brings competition and challenges.
First, Malaysia needs strong implementation to ensure fair, reasonable, and legal market operations. For example, strengthening the legitimacy of the healthcare industry, regulating service industry licensing systems, and ensuring that foreign workers hold valid work permits will help protect local businesses and maintain fair competition.
Second, we must preserve our core competitive advantages. Local SMEs need to improve product quality, enhance production efficiency, and strengthen the professionalism and quality of their services. Besides that, The Ministry of Education should actively promote a strong work ethic among the younger generation, so they can find passion and responsibility in their careers and prevent being replaced by more competitive foreign talent.
Furthermore, our country’s technological development is akin to rowing against the current – if we don’t progress, we will fall behind. We need to accelerate the introduction of new technologies, machinery, software systems, and artificial intelligence (AI) to comprehensively improve the level of products and services. This is not only a necessary step to keep up with the times but also an essential path for the country to become a high-income and developed economy.
In the face of these circumstances, Malaysia cannot approach the challenges posed by the opening up of international markets with a closed mindset. Blocking markets or rejecting competition will only cause us to fall behind. On the contrary, progress through openness and self-improvement is the foundation for the country’s long- term development. Complaining and being passive will not solve the problem, only by actively facing reality and seeking solutions can we overcome this wave of disruption. Market opening is an irreversible trend, and self-improvement is the only way forward.
I firmly believe that Malaysia has a kind and educated population. With more effort, Malaysia will surely overcome this wave of challenges. The more effort we put in, the greater the results; as long as we persist, tomorrow will be brighter.
Translated from original article source:
