In its 2025 report published today, Consumer Choice Centre (CCC) said a price floor “takes away the opportunity for consumers to get the products they want at lower prices”, and “denies small businesses access to many potential consumers”.

“Far from helping small businesses, a price floor would harm them the most – it unreasonably raises operating costs, imposes high barriers to entry, and wastes their time and energy, putting many firms at risk of insolvency,” read the report.

Last year, government spokesman Fahmi Fadzil said the proposal, which would apply to small parcel deliveries, would be refined based on a comprehensive study.

He said the study would include cost audits and an industry-wide review of pricing structures to ensure that any mandatory floor price is fair and appropriate.

The report’s research director, Emil Panzaru, said the market remains highly concentrated, with about 15 companies handling roughly 98% of total parcel volumes, even though 102 licensed courier firms are in operation.

“When prices increase, demand falls, and fewer parcels are shipped, directly affecting overall delivery volumes,” Panzaru said at a briefing on the report today, adding that fewer deliveries could eventually strengthen the dominance of bigger companies.

CCC’s Malaysian associate, Tarmizi Anuwar, also said the local courier industry has expanded rapidly, with parcel volumes rising from 52 million in 2015 to 899 million by the third quarter of 2024, driven largely by e-commerce activity.

Panzaru and Tarmizi both said smaller firms already face intense pressure from larger competitors with stronger networks and automated systems, an imbalance that a price floor would worsen, as smaller firms often rely on lower prices and high delivery volumes to stay afloat.

They urged policymakers to consider alternatives such as improving infrastructure and targeted support for small firms, instead of blanket price controls that could distort the market.