Don’t take protectionist measures against cheap online imports, says Warisan veep

 Junz Wong calls for local businesses to be strengthened and the cost of doing business reviewed, so that consumers do not bear higher prices due to inefficiencies in the system.

Local businesses have raised the alarm over the influx of cheap goods imported through online platforms, leading to the formation of a Cabinet committee to look into the matter.

PETALING JAYA:

The federal government has been urged to review the high cost of doing business in Malaysia instead of resorting to protectionist measures against the influx of cheap imported goods from online suppliers, especially from China.

Junz Wong.

Warisan vice-president Junz Wong said consumers should not be forced to pay higher prices because of inefficiencies in the system, and local businesses should be helped to become more competitive.

“We cannot expect businesses to compete while dealing with unreliable electricity, water disruptions and high logistics costs,” he said, pointing to Sabah’s dependence on logistics, limited manufacturing capacity and unreliable infrastructure as factors driving up prices.

His comments come as a federal minister said a Cabinet committee has been formed to look into the influx of cheap imported goods, through online platforms by strengthening the promotion, use and purchase of local products.

Wong urged the federal government to review taxation and regulatory burdens on businesses, particularly small and medium-sized enterprises, to prevent further increases in the cost of living. He said rising expenses, including rent, wages, utilities, logistics and taxes, would ultimately be passed on to consumers.

Higher operating costs could push consumers towards cheaper online alternatives, he said. Improvements should be made to infrastructure, logistics and manufacturing capacity rather than measures restricting competition.

Among the online platforms supplying cheap products is the China-based Pinduoduo e-commerce platform. - FMT