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Foreign e-commerce platforms should establish local offices, says MP

A Malaysian lawmaker has called for international online shopping platforms to set up physical operations in the country, arguing that Chinese retailers operating from overseas enjoy unfair cost advantages over domestic businesses.

LSN Malaysia · 14 October 2026

Foreign e-commerce platforms should establish local offices, says MP

Masjid Tanah Member of Parliament Mas Ermieyati has urged foreign e-commerce platforms to establish local offices to level the playing field for Malaysian retailers. The call comes as Chinese shopping applications such as Temu and Pinduoduo continue to expand their presence in Malaysia, offering goods sourced directly from factories at significantly lower prices than traditional local businesses. According to Mas Ermieyati, these overseas platforms benefit from structural advantages that domestic retailers cannot match. Local merchants face substantial operational costs including rent, employee wages, and tax obligations, putting them at a significant competitive disadvantage against foreign competitors that avoid these expenses by operating remotely. The MP argues that requiring international e-commerce platforms to establish physical offices in Malaysia would create a more equitable marketplace. Such a requirement would force foreign retailers to bear similar operational costs as their local counterparts, potentially narrowing the price gap that has made their services attractive to Malaysian consumers. The issue reflects growing concerns among Malaysian business groups about the impact of low-cost foreign online retailers on the domestic retail sector. Policymakers are increasingly examining how to balance consumer access to affordable goods with the protection of local employment and business interests.