Growing market for fake products concerning’

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Fake products pose risks to safety and brand trust

Malaysia’s growing prominence as a centre for counterfeit products presents far-reaching consequences for the national economy, local businesses and consumer behaviour, said economist and Global Labour Organisation lead for Southeast Asia Prof Niaz Asadullah.

Its enforcement division director-general Datuk Azman Adam said between January and November 2023, RM14.9 million worth of counterfeit goods were seized from hotspots in Jalan Petaling, Jalan Chow Kit and Jalan Kenanga in Kuala Lumpur. “Between January and December, 66 cases involving Malaysian suspects and two involving foreigners were linked to counterfeit goods under the Trademarks Act. The cases saw the seizures of products worth RM320,435.60.”

SMEs in Malaysia bear the brunt of the issue since counterfeit goods divert sales from genuine products that are more expensive to produce due to regulatory compliance and quality standards.

“Poor awareness on the dangers of counterfeit food or medicines worsens the problem,” he said, adding that counterfeit goods distort market dynamics by undercutting legitimate product prices, creating unfair competition and disincentivising quality adherence among local businesses. “Enhanced intelligence sharing and cross-border cooperation could help dismantle counterfeit networks. Supporting Malaysian SMEs is vital as many operate semi-formally and lack the resources to protect their intellectual property.

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