Yeah Kim Leng, a professor of Economics at Sunway University Business School, told FMT that an open market system brought about by globalisation and increased connectivity was intensifying competition for local businesses.
“It changes the skill and capability requirements of our producers. They need to think about how to compete, not just against China but other countries as well.
“It’s both a challenge as well as an opportunity for Malaysian businesses to see how they can leverage on this new trend.
“The more savvy will be able to thrive as they are able to tap into overseas markets through online platforms,” he said, adding that the principle of “survival of the fittest” would become even more relevant in the coming years.
His comments were based on statements made by consumer associations regarding a growing number of Malaysian consumers buying “Made in China” products.
According to the Federation of Malaysian Consumers Associations (Fomca) and Consumers Association of Subang and Shah Alam, Selangor (Cassa), Malaysians were willing to look past the stigma often attached to Chinese products as they were usually cheaper.
“Very often, there is concern when it comes to products from China, about whether these products are safe to use or of good quality,” Fomca CEO Paul Selvaraj told FMT.
“But even if there is this concern, people are still willing to buy from China because it gives the best price.”
Cassa president Jacob George told FMT that it was both price and availability that encouraged Malaysians to buy Chinese goods.
“Basically, at this present moment, with the escalation in cost of living, the cheapest alternative is to buy from China. China is able to sell cheap because of its mass production, despite people complaining about the quality.
“Malaysia is also a dumping ground for all of China’s products, so they are easily available.”
He said consumer associations discouraged people from buying such products.
“We don’t encourage it but when you’re talking about consumers struggling with escalating costs, what do you do? They have no choice but to try and make ends meet.
“For them, value for money is no longer a consideration. In this kind of situation, you have that dilemma.”
Health concerns over food from China
Klang MP Charles Santiago, who is also an economist, said Malaysians were buying food from China out of economic necessity despite their misgivings about the quality of the items.
“It’s out of desperation. That’s why cheap Chinese products, which may be contaminated with chemicals and such, are being consumed on a large scale,” he told FMT.
The problem, he said, was that when people fell sick from consuming these products, it would incur even greater costs for the government.
“There is a future cost because when you consume these high-chemical products, you fall sick and you go to government hospitals.”
He urged the government to establish stricter regulations on food coming into the country.
“There is no excuse for eating toxic food. We must ensure that the food coming into the country fulfils all international health standards.”