KPDN to Review Guidelines on Foreign F&B Brands Like Mixue & Chagee to Ensure Fair Competition

The Ministry of Domestic Trade and Cost of Living (KPDN) is reviewing its guidelines for foreign companies to ensure fairer competition for local micro, small and medium enterprises (SMEs).

In yesterday’s Dewan Rakyat session (22 January), KPDN Deputy Minister Datuk Fuziah Salleh shared that KPDN acknowledges that there are gaps in the existing guidelines developed in 2020, following the rapid entry of food and beverage (F&B) brands from abroad, with the concept of specialty stores in our “free market economy“.

“We found that most foreign F&B brands entered rapidly in 2024. Therefore, we need to improve and review the guidelines developed in 2020,” she said.

This comes in response to a question from Ampang MP Rodziah Ismail, on the government’s strategy to control the aggression of foreign F&B brands such as Mixue, Chagee and Auntea Jenny, as well as foreign products on e-commerce platforms that set very competitive prices, known as ‘predatory pricing‘, to the point of threatening the survival of local SMEs.

Amendments or new legislation

She went on to explain that amendments to the existing guidelines or new legislation are expected to be tabled in the next Parliament sitting. This move is believed to be aimed at restricting the further expansion of foreign F&B brands to create a fairer market for SMEs. 

This image is for illustration purposes only.

“In conclusion, there needs to be a balance to develop the competitiveness of SMEs so that competition occurs fairly. KPDN also needs to collaborate with other agencies, not just passively protect the industry, but develop the local industry to be more competitive.”

“The market is not closed; on the contrary, competition is encouraged to safeguard the interests of consumers. God willing, we will ensure this balance and make the trade ecosystem fairer,” she added.

You can check out the session here (1:54:10):

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