How an app from China is disrupting small businesses in Malaysia

How an app from China is disrupting small businesses in Malaysia By FocusM 3 hours ago in Mainstream , Top MALAYSIAN micro, small, and medium-sized enterprises (MSMEs) are facing intense pressure from cheap cross-border imports, with local traders reporting sharp revenue declines during crucial festive periods, according to The Straits Times . Small business owners attribute the slump to the entry of Chinese eCommerce giant Pinduoduo into Malaysia in late 2025. Operating under PDD Holdings – the parent company behind Temu – the platform ships factory-direct goods directly to Malaysian consumers. By eliminating middlemen and offering free shipping even on items under RM2, prices for ceremonial goods like joss sticks have been undercut by up to 50% compared to local wholesale costs. The disruption is felt acutely during peak trading periods like the Hungry Ghost Festival. Penang merchant Lee Chuan Wei reported that festive sales dropped to 60% of previous levels, while the Federation of Sundry Goods Merchants Associations of Malaysia noted sales drops of up to 30% among members in Johor and Kuala Lumpur. Calls for tighter regulations With MSMEs employing nearly half of Malaysia’s workforce and contributing roughly 40% to GDP, local business groups are urging government intervention: App Store Suspension: Perak MP Tan Kar Hing called for Pinduoduo’s suspension, highlighting that unlike Shopee, Lazada, or TikTok Shop, the platform maintains no local registered entity, physical footprint, or local supply chain jobs. Regulatory Oversight: Association of Praying Material Traders Malaysia President Eugene Sing urged Malaysia to follow Indonesia’s policy model by requiring foreign platforms to register locally and prioritise domestic merchants. In response, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed that a new law is being drafted to regulate eCommerce platforms, while Deputy Finance Minister Liew Chin Tong has engaged major platforms to establish a level playing field for domestic businesses. — Aug 15, 2026 Main photo credit: The Straits Times Subscribe and get top news delivered to your Inbox everyday for FREE Name Email SUBSCRIBE Latest News “PKR should remain a mass movement,” says Anwar as ex-leaders rally behind Bersama 1 hour ago How an app from China is disrupting small businesses in Malaysia 3 hours ago Another clash between DAP giants from Penang on UMNO’s role in gov’t 4 hours ago Ramasamy: Congress or no congress, PKR and DAP are burning bright at the point of political decline 6 hours ago Anwar bends on pressure, says Ong but Howard Lee warns of backlash on Sunday’s DAP vote 7 hours ago