Deputy domestic trade and cost of living minister Fuziah Salleh said her ministry was seeking to balance free market principles, fair competition and consumer protection, and ensure that local industries are not sidelined.

“The challenge is ensuring that competition remains fair and local industries are protected in a free market economy,” she said in the Dewan Rakyat today.

Fuziah was replying to Rodziah Ismail (PH-Ampang), who had asked the ministry about the measures it had and would take to curb the expansion of such foreign brands, as well as e-commerce platforms that distort market prices by offering extremely competitive prices, threatening the survival of local SMEs.

Fuziah said the current guidelines especially warrant review given the rapid expansion of the F&B sector since 2024, and the fact that the rules were drafted more than two decades ago.

She said Mixue entered the Malaysian market in 2024 and expanded to about 500 outlets, and that her ministry had restricted further expansion last year.

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

Fuziah said her ministry also introduced specialty store guidelines in 2020, which require companies operating in the country to be incorporated in Malaysia, have paid up capital of at least RM1 million and conduct an impact assessment if outlet space exceeds 5,000 sq m.

On e-commerce, Fuziah said her ministry was finalising legislation to amend or replace the Electronic Commerce Act 2006, to be tabled in Parliament this year.