Last month, economy minister Rafizi Ramli said a policy paper on reducing APs and IPs is currently in the works, adding that the government hopes the move will reduce the prices of goods, especially those that are imported.

Ahmed Razman Abdul Latiff, from Putra Business School, said local products will still be able to compete with cheaper imported goods due to their attractive prices and strong consumer demand.

“Most local products are already cheaper compared to imported goods,” he told FMT.

“At the same time, the demand for local products is always high.”

Shankaran Nambiar of the Malaysian Institute of Economic Research, believes that reducing APs and IPs will allow for freer movement of goods.

He added that this should motivate local businesses to ensure their goods are also more competitively priced.

Rafizi, who announced plans to reduce or limit APs and IPs on Aug 29, also said there was room to improve existing anti-monopoly regulations to ensure a more competitive market.

He said that in the long run, this would lead to consumers enjoying more competitive prices for goods and services.

In May 2022, the Ismail Sabri Yaakob government had announced the end of APs for food imports to ensure sufficient food supply. However, APs for rice imports remained in effect.

Ismail had said that Putrajaya was also looking into abolishing APs for imports in sectors other than food.