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Malaysia tightens trade rules as Austria focuses on education reforms

Foreign brands face stricter rules in Malaysia’s retail sector—will local businesses finally get a fair shot? Meanwhile, Austria’s lawmakers turn their attention to classrooms, not commerce.

The image shows a bustling central market in Kuala Lumpur, Malaysia, with tall buildings, street...
The image shows a bustling central market in Kuala Lumpur, Malaysia, with tall buildings, street poles, street lights, motor vehicles on the road, persons walking on the footpath, name boards, trees and a sky with clouds in the background.

Malaysia tightens trade rules as Austria focuses on education reforms

Austria’s Nationalrat will hold its first plenary session of 2026 on Wednesday, January 21, at 9:00 AM. The meeting will focus on education-related government proposals, leaving other key legislative updates for later sittings. Meanwhile, Malaysia’s Ministry of Domestic Trade and Cost of Living (KPDN) is reviewing trade policies to address rising concerns over foreign competition in local markets.

In Malaysia, KPDN is examining guidelines governing foreign companies in the trade distribution sector. The review follows criticism of the 2020 rules, which Deputy Minister Datuk Dr Fuziah Salleh admitted had gaps needing improvement. The push for change comes as foreign food and beverage (F&B) brands increasingly use the specialty store model to enter the market.

The ministry is also amending the Electronic Commerce Act 2006 to shield local micro, small, and medium enterprises (MSMEs) from unfair competition. The updates aim to balance three goals: boosting MSME competitiveness, fostering local industry growth, and maintaining healthy market competition. These amendments will be tabled at the next Parliament sitting, though no date has been set. Back in Austria, the January 21 session will not cover trade or digital commerce laws. Instead, lawmakers will debate education policies, leaving discussions on the Electronic Commerce Act 2006 for future meetings.

The KPDN’s policy review and legislative changes target foreign brand dominance in Malaysia’s retail and e-commerce sectors. Updated guidelines and legal amendments will shape how international firms operate alongside local businesses. Austria, meanwhile, will delay its own digital trade law discussions until a later session.

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