KSFA Urges Government to Tighten Regulation on Foreign Firms to Protect Local Furniture SMEs

Kuala Lumpur, June 24 – The Kuala Lumpur and Selangor Furniture Association (KSFA) is urging the government to take stronger regulatory and enforcement actions to protect local small and medium-sized furniture businesses from increasing competition by foreign companies.

Following an internal survey among its members, KSFA found that many local businesses are struggling with unfair market practices brought by foreign furniture and renovation firms that have entered the Malaysian market in large numbers.

According to the survey, most respondents said there is no difference in entry barriers between foreign and local businesses, and a lack of effective enforcement has led to serious market disruption—especially in the form of price dumping, use of illegal foreign workers, and unfair competition.

Some foreign companies were reported to offer extremely low prices or bids, undercutting local businesses. Others hire illegal foreign workers for on-site installation and renovation, further squeezing the market share of legitimate local operators.

To ensure fair competition and support for Malaysian SMEs, the association is calling for the government to urgently review foreign business entry regulations and consider the following measures:

• Raise the minimum paid-up capital requirement for foreign firms (recommended RM5 million or more);
• Require at least 50% local ownership and workforce;
• Restrict foreign companies from direct retail operations, especially those competing with local retailers;
• Introduce anti-dumping rules and minimum pricing policies to prevent market distortion;
• Strengthen enforcement against unlicensed operations and illegal foreign workers;
• Set up hotlines for reporting illegal activities and corruption;
• Encourage foreign firms to hire local staff, use local materials, and partner with local businesses;
• Government should not place new tax or operational burdens on Malaysian SMEs.

KSFA noted that many of its members feel overwhelmed by the situation. “Some said they have no choice but to focus on service quality and try to survive,” the association reported, highlighting the need for urgent support.

KSFA President Mr. Alfred Yow Song Vooi said, “We welcome legal and healthy international competition, but it must be fair and regulated. If unfair or illegal practices continue unchecked, it will harm local businesses and weaken the integrity of the national market.”

He called on authorities to listen to the concerns of local industry players and create a more balanced and sustainable business environment.

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KL & Selangor Furniture Association Committee Member