{
  "id": 11083758,
  "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",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-01T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "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) face a significant challenge as imported goods enter the market at or below the cost of locally produced items, often bypassing necessary certifications and taxes. This disadvantages local businesses, particularly in sectors such as fast fashion, apparel, footwear, plastics, household essentials, and consumer electronics. William Ng, president of the Small and Medium Enterprises Association (Samenta), argues that imported products should be subject to the same safety, tax, and certification requirements as Malaysian products to ensure a level playing field. He claims that local retailers and brand owners cannot compete with factory-direct pricing when imported goods are sold at or below cost. Furthermore, food and beverage businesses, as well as manufacturers of building materials, hardware, metal and plastic products, packaging, and furniture, are also experiencing pressure from higher compliance, labor, and utility costs. A recent report by the Global Institute for Tomorrow (GIFT) warns that an influx of foreign goods, particularly from China, is harming local businesses, which could lead to closures and job losses. Ng emphasizes that cross-border e-commerce platforms have exacerbated the issue by subsidizing logistics and enabling direct factory-to-consumer shipping, making it difficult for local SMEs to match pricing and delivery speed. He calls for importers to comply with the same standards as local manufacturers, including Sirim certification, safety requirements, energy-efficiency ratings, and mandatory labeling in Bahasa Malaysia or English. Ng also advocates for stricter customs checks and warehouse audits to prevent transshipment mislabeling and under-declaration, common issues in direct factory-to-consumer imports. While Samenta is not advocating for protectionism, they urge stronger enforcement and measures to help SMEs become more competitive, such as grants and tax rebates for automation, digital transformation, environmental, social, and governance (ESG) compliance, and research and development. GIFT founder Chandran Nair notes that Putrajaya has the right to protect local industries without violating World Trade Organization rules, given China's domestic industrial overcapacity and slower consumption, leading manufacturers and distributors to push inventory into Southeast Asia, with Malaysia becoming a prime target due to its open economy. Economist Sunway University's Yeah Kim Leng adds that while cheap imports benefit consumers with lower prices, they pose a double-edged sword for SMEs, who must improve product features, move up the value chain, or change their business model 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",
        "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."
}