E-commerce sites must rise to challenges of Malaysia ‘invaded' by cheap Chinese products'

Focus Malaysia

2 days ago

IT IS inevitable that current global dynamics – particularly the escalating US-China trade war and the high US tariffs – are expected to trigger a surge of low-cost Chinese products been re-directed into Southeast Asian markets, including Malaysia.
Towards this end, the Malaysian Micro Business Association (MAMBA) has called on e-commerce platforms to continue investing in infrastructure, tools and services that improve customer satisfaction such as faster delivery, reliable refund processes, better search functions and AI-powered product recommendations.
'We are already seeing cheap imports entering the market through new and existing e-commerce platforms targeting consumers in Malaysia, undercutting local sellers and threatening their long-term survival,' observed MAMBA's secretary-general Alvin Low Wei Yan.
'As this trend is likely to accelerate in the months ahead, we must prepare for it strategically.'
Low farther expects the proposed improvements to make e-commerce platforms more attractive to buyers, able to increase traffic, hence in turn boost visibility and conversion rates for sellers.
'Good customer experience is not just a buyer issue -it's a seller issue too,' Low pointed out. 'When platforms are seen as trustworthy, convenient and efficient, everyone benefits. Sellers who operate on such platforms stand a better chance of building customer loyalty and driving repeat business.'
On this note, Low stressed the importance for e-commerce platforms to independently fund major infrastructure and service upgrades – especially in areas like AI tools, logistics, fraud prevention and customer support – for long-term gain.
'Doing so alone is not only costly but unsustainable because it requires significant investment,' he cautioned.
'That's why it's critical for both the government and local sellers to support and collaborate with platforms that continue to place micro, small and medium enterprises (MSMEs) at the centre of their ecosystem.
'If platforms are unable to reinvest due to pricing pressure or policy uncertainty, the entire seller ecosystem will suffer in the long run.'
According to data and analytics company GlobalData, the Malaysian e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 8.5% between 2024 and 2028 to reach RM67.1 bil by 2028.
This outlook underscores the long-term potential of the digital marketplace and the importance of staying competitive through reinvestment and innovation.
Earlier, MAMBA called for a more balanced and constructive conversation surrounding recent fee structure adjustments by e-commerce platforms.
While it understands the concerns raised by various quarters, MAMBA believes that this issue requires a holistic perspective – one that considers both the sustainability of digital platforms and the competitiveness of local MSMEs.
'We must avoid scare tactics and politicising important conversations that directly affect thousands of Malaysian sellers,' asserted Low.
'There needs to be room for discussion so that everyone – from sellers to shoppers to platforms – can win.' – July 15, 2025