{
  "id": 11077943,
  "title": "Enforce same rules before cheap imports squeeze out local SMEs",
  "url": "https://urgent.news/2026/10/01/enforce-same-rules-before-cheap-imports-squeeze-out-local-smes",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-01T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/10/01/enforce-same-rules-before-cheap-imports-squeeze-out-local-smes-says-association"
  },
  "original_language": "en",
  "account": "Malaysian small and medium enterprises (SMEs) are struggling to compete with cheap imported goods, according to the Small and Medium Enterprises Association (Samenta). Association president William Ng claims that local SMEs are being unfairly disadvantaged due to the lack of uniform certification, safety, and tax requirements for imported products compared to domestic ones. Ng highlighted that imported goods are often entering the market at prices below local production costs, bypassing compliance costs and regulatory certifications that Malaysian SMEs must comply with. This situation is particularly detrimental to local businesses in fast fashion, apparel, footwear, plastics, household essentials, and consumer electronics. Ng also pointed out that food and beverage businesses are facing similar challenges, as well as manufacturers of building materials, hardware, metal and plastic products, packaging, and furniture. These businesses are experiencing increased costs related to compliance, labor, and utilities. The pressure on local SMEs has been exacerbated by cross-border e-commerce platforms, which are subsidizing logistics and allowing direct factory-to-consumer shipping, making it difficult for local SMEs to match pricing and delivery speed. Ng urged importers to adhere to the same standards imposed on local manufacturers, such as Sirim certification, safety requirements, energy-efficiency ratings, and mandatory labeling in Bahasa Malaysia or English. He also called for tighter customs checks and warehouse audits to reduce transshipment mislabelling and under-declaration, which are common issues with direct factory-to-consumer imports from China. Ng emphasized that Malaysian exporters already meet certification requirements like CE standards for exports to Europe and CCC requirements in China, but foreign sellers should face similar rules when entering the Malaysian market. To help local SMEs become more competitive, Ng suggested stronger enforcement and measures like matching grants and tax rebates for automation, digital transformation, ESG compliance, and research and development. GIFT founder Chandran Nair acknowledged that Putrajaya has the right to protect local industries without breaching World Trade Organization rules. Nair noted that China's domestic industrial overcapacity and slower consumption have led manufacturers and distributors to push excess inventory into Southeast Asia, with Malaysia being a prime target due to its open economy. Sunway University economist Yeah Kim Leng added that cheap imports are a double-edged sword, benefiting consumers with lower prices but posing challenges for SMEs, who must improve product features, move up the value chain, or change their business models to remain competitive.",
  "summary": "Samenta says foreign producers do not face the same requirements as Malaysian businesses, enabling them to undercut their local rivals.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Enforce same rules before cheap imports squeeze out local SMEs",
        "url": "https://urgent.news/2026/10/01/enforce-same-rules-before-cheap-imports-squeeze-out-local-smes-11083758",
        "published": "2026-10-01T01:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}