Malaysians split over foreign F&B rules

LocalBusiness & Finance
27 Jan 2026 • 9:00 AM MYT
The Sun Daily
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Consumers weigh protecting local SMEs against affordable foreign options, highlighting fairness, efficiency, and innovation in the F&B sector.

PETALING JAYA: As the government reviews guidelines on foreign participation in the F&B sector, Malaysians are divided, reflecting the delicate balance between protecting local businesses and ensuring consumer choice.

Some consumers expressed frustration with both foreign and local operators.

“On one hand, I really dislike cheap, foreign ice cream brands that serve sugar-laden treats, which feel like a health hazard every time people consume them.

“On the other hand, I also get annoyed at local brands or SME that price their menus based on ‘vibes’ rather than value, making some products up to three times more expensive. It feels like neither side is playing fair,” said university student Muhammad Johan Arifin.

Others highlighted the importance of healthy competition. Damien (not his real name) said if foreign brands could offer low prices, local brands should be able to do the same.

For him, the key lies in improving business efficiency rather than relying solely on regulatory protection.

Noorain Mohd Nor shared a similar view, emphasising that both competition and regulation have roles to play.

“This is a free market. If your food and drinks aren’t competitive, then step aside.

“Consumers shouldn’t have to pay more just because some businesses can’t perform.

“At the same time, government rules should help level the playing field where structural disadvantages exist, so local shops could survive and thrive alongside larger competitors.”

She also pointed out why foreign brands often gain an advantage.

“They win because of price, which is often cheaper than local alternatives, and service, which is fast and convenient,” she said, adding that the government should monitor not only foreign operators but also how local businesses price their offerings.

“If the government is serious about fair competition, it should ensure local businesses aren’t overcharging or limiting options for consumers.”

Offering a more optimistic perspective, Farah (not her real name), a small-business owner, said competition from foreign brands has encouraged her to innovate.

“I’ve started offering delivery and digital ordering for the first time, and customers seem to appreciate the convenience.

“If the guidelines could help us compete fairly, it could be a real boost for local businesses.”

Public reactions reveal a nuanced reality: While many Malaysians support efforts to safeguard local SME, they also value affordability, quality and convenience.