Malaysia reviews dumping laws as cheap China goods spark concern

Malaysia’s Trade Ministry is reviewing its anti-dumping legislation and plans to present it to parliament next year, joining Indonesia in heeding concerns about cheap Chinese products hurting local businesses.

The government supports protecting small- and medium-sized enterprises from the effects of unfair trade following the large influx of cheap imported goods from countries including China, Deputy Trade Minister Liew Chin Tong said in parliament Wednesday.

Between 2015 to 2023, the ministry enforced nine anti-dumping measures against Chinese exporters to protect the local industry, Liew said in response to questions from senator Low Kian Chuan, who heads the Association of Chinese Chambers of Commerce and Industry Malaysia. 

The action is similar to recent moves by Indonesia’s Trade Ministry, which is looking at a broader range of goods as it seeks to regulate the surge in imports, including from China, that threatens local industries.

The Malaysian Trade Ministry is open to working with the association to study the impact of Chinese products on local businesses, Liew added. But he was quick to add that the government doesn’t target individual nations, signaling the delicate balancing act Malaysia has to play in attracting trade while ensuring domestic producers remain competitive.

Beijing is Kuala Lumpur’s largest trading partner, and “cooperation between China and Malaysia could benefit local entrepreneurs through the supply chain and business opportunities,” said Liew. Trade between the two countries rose 5.9% to 151 billion ringgit ($29.8 billion) between January to April this year, compared to the same period in 2023, he added.