Govt to review rules as Mixue, Chagee, foreign brands multiply

 

LIFE IS so much sweeter for us Malaysians with the many MIXUE, Chagee and whatever drink franchises popping about like mushrooms in the rain.

But before we take a slurp of that sweet drink, have we ever pondered the effects of these large foreign franchises on the local market?

That concern is soon to be addressed since the government is reviewing its guidelines for foreign food and beverage brands, a deputy minister said. This follows the concerns raised by a Member of Parliament that the expansion of chains such as Mixue, Chagee and Auntea Jenny could threaten the sustainability of local small and medium-sized enterprises.

Deputy Minister of Domestic Trade and Cost of Living Fuziah Salleh said her ministry was seeking to strike a balance between the principles of a free market, fair competition and consumer protection, while ensuring that local industries are not marginalised.

Media channel Ekonomi Rakyat posted the same topic on X, and the post has since drawn the attention from numerous netizens.

According to netizen @AltheaVomba, they should just dispose of the China food and beverages brand since these are not delicious, being filled with sugar. “Agree. They enter and destroy the market,” said @aqilqym.

Another netizen pointed out Mr DIY as well, saying that the brand has ruined many small grocery shops. “Not even one to two kilometres and there is a DIY or 99,” he said.

However, @OrionBexter stressed that as a smart consumer, he gives more support towards the foreign vendors that come offering a lower price. 

“Business in F&B is competitive. Can’t run,” said @GeminiMan2026. Also, @Faddy18416435 said the local products are expensive, that the ones sold in the night market are already the same price, or even higher than the ones in the mall.

To recap, Deputy Minister of Domestic Trade and Cost of Living Fuziah Salleh responded to a question from Rodziah Ismail (PH-Ampang), who asked about the ministry’s measures to curb the expansion of foreign brands, including e-commerce platforms that disrupt market pricing by offering extremely competitive prices, thereby threatening the survival of local SMEs.

She said the existing guidelines were due for review, given the rapid growth of the F&B sector since 2024, while the regulations themselves were formulated more than two decades ago.

Fuziah noted that Mixue entered the Malaysian market in 2024 and has since expanded to around 500 outlets, adding that her ministry restricted its expansion last year.

“We do not allow them to freely add outlets. It is not that straightforward,” she said.

She added that the ministry also introduced guidelines for specialised stores in 2020, which require companies operating in the country to be registered in Malaysia, have a minimum paid-up capital of RM1 mil, and conduct an impact assessment if the premises exceed 5,000 square metres in size. — Focus Malaysia