KUALA LUMPUR — Low prices for goods offered on e-commerce platforms cannot be directly considered as predatory pricing or anti-competitive practices, said Deputy Minister in the Prime Minister’s Department (Religious Affairs) Senator Marhamah Rosli.

She said the determination of whether a practice constitutes anti-competitive must be assessed based on facts, market data and sufficient evidence.

This includes the actual cost structure, sources of subsidies or financing, market position, the period during which the low price is offered and its impact on competitors, she said.

“The government’s principles are clear. Malaysia remains an open-market economy that encourages trade, investment, innovation, and competition.

“Healthy competition benefits consumers through more competitive prices, a wider selection of products and improved service quality,” she said at the Dewan Negara today.

She was responding to Senator Datuk Phoong Jin Zhe’s adjournment speech regarding the threat posed by cross-border e-commerce platforms such as Pinduoduo and Temu to the ecosystem of micro, small, and medium enterprises (MSMEs) and the country’s retail sector.

Phoong raised concerns from local traders and business associations that they would find it difficult to compete fairly with foreign sellers due to higher operating costs, such as premises rent, employee wages, statutory contributions, customs clearance, and various business taxes.

Marhamah said that although the government adopts an open-market economic policy, this does not mean the market is left unregulated.

Rather, she said the government will ensure a level playing field exists and that all industry players, whether local traders, foreign sellers, or digital platforms, are subject to the same laws and responsibilities.

She said that the government will not compromise on any trade practices that unfairly eliminate competitors, abuse market position, or ultimately harm consumers and the country’s business ecosystem.