Malaysian Ceremonial Goods Market Slumps As Pinduoduo Disrupts Local Retail

Malaysian ceremonial goods merchants are reporting a significant downturn in business during this year’s Hungry Ghost Festival, with sales dropping by as much as 40%. The decline is being attributed to the rise of Pinduoduo, a Chinese e-commerce platform that entered the Malaysian market in late 2025.

According to the original publisher, the platform has successfully undercut local prices by up to 50% by shipping factory-direct goods, including joss sticks, directly to consumers. With items often priced under RM2 and shipping provided for free, traditional sundry shops and local wholesalers are finding it impossible to remain price-competitive.

The impact on the industry has been severe. While some individual merchants report that revenue has fallen to only 60% of previous levels, various business associations have recorded broader declines of up to 30%. The disparity stems from the platform’s ability to bypass the traditional supply chain, shipping goods straight from manufacturers to Malaysian doorsteps.

Unlike established e-commerce players such as Shopee or Lazada, Pinduoduo currently operates without a local entity, local staff, or a local tax footprint. This operational model has placed the platform outside of Malaysia’s regulatory perimeter, leading to calls from trade groups for the government to either regulate or suspend its activities.

This trend highlights a growing conflict between global discount platforms and local micro, small, and medium enterprises (MSMEs). As these digital platforms continue to reshape the retail landscape, business advocates are pushing for new legislation to protect local vendors who are burdened by domestic operational costs and tax obligations, which overseas direct-to-consumer services currently manage to avoid.