PETALING JAYA, March 17 — Malaysian manufacturers are facing mounting pressure to cut prices and margins as competition from Chinese products intensifies, the Federation of Malaysian Manufacturers (FMM) said today.

Its president Jacob Lee Chor Kok said 46 per cent of firms surveyed reported pressure to reduce prices or margins, reflecting growing competitive strain across the sector.

“About 42 per cent have experienced a loss of domestic market share, while 40 per cent reported intensified price competition locally, and 34 per cent are facing stronger competition in export markets,” he told a press conference during the presentation of FMM Business Conditions Survey for the second half of 2025 at Wisma FMM here.

Lee said the impact of competition from China is not uniform, with 12 per cent of local firms describing it as manageable and 16 per cent reporting no noticeable effect.

However, he said most Malaysian manufacturers are already adjusting, with 46 per cent focusing on improving operational efficiency and cost management.

“Another 45 per cent are responding through product differentiation, including quality improvements and branding, while 38 per cent have reduced prices to remain competitive,” he said.

He added that 23 per cent of firms are moving into niche or higher-value segments, while only 11 per cent reported taking no significant action.

Lee said the findings show competition from Chinese products is intensifying across markets, pushing Malaysian manufacturers to respond through cost efficiency, differentiation and selective price adjustments.