The first thing we need to understand is that the joint venture represents an investment from China, hence their products.
The second point is that competition in China is high due to the availability of so many different products on the market. Hence, China has no choice but to export its products overseas in order to survive and thrive.
Thirdly, there are not many Chinese brands that have become internationally recognized like Western ones, which can make it difficult for them as they cannot rely on brand recognition or nostalgia for potential customers in Malaysia.
Fourthly, the Chinese government heavily regulates imports into the country; its own citizens are not allowed to buy things online from international sites like amazon (Chinese citizens can’t even buy things outside of mainland China). This means that they have been directed away from these more open markets and towards these economically less developed countries where they are welcomed with open arms.
Industry experts say that the rapid growth in Chinese products entering the Malaysian market is due to the fact that they are getting cheaper and more competitive.
Chinese manufacturers are now competing with other foreign players such as Japan, Korea and Thailand on price while still retaining quality, at least the products still can be used as intended though could be on a shorter life span.
The Malaysian industry has also improved its manufacturing processes and capabilities, making them more competitive when it comes to technology. The industry experts say that are excited to see the Malaysian industry develop, but also acknowledge that there are still challenges, especially when it comes to the cost of living. Transformation is happening albeit at a slow phase. Making Malaysia a low-cost manufacturing hub, the answer is unlikely because it would be too much to ask of companies.
The low-cost products from China are what we’re talking about. They will satisfy the needs of most people in Malaysia. In general, most people need to buy those cheaply priced items. This is supported by the majority of people with lower or higher income levels.
The good thing about the flood of China-made products that are available nationwide is that we can pick & choose a wide variety of products with highly competitive pricing.