Hungry Ghost Festival Sales Drop 40% As Chinese App Pinduoduo Ships Joss Sticks Free To Malaysian Doorsteps
Chinese eCommerce platform Pinduoduo has undercut Malaysian ceremonial goods merchants by up to 50% since entering the market in late 2025, with festive sales dropping as much as 40% and business groups calling for the platform — which operates with no local entity, no local staff, and no local tax footprint — to be regulated or suspended.
Source: The Rakyat Post · August 16, 2026 at 7:46 PM · AI-assisted report
KUALA LUMPUR, 17 AUGUST 2026 —
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Chinese E-Commerce Giant Pinduoduo Disrupts Malaysian Ceremonial Goods Market, Festive Sales Plunge Up to 40%
Market Impact
KUALA LUMPUR — Chinese e-commerce platform Pinduoduo has slashed prices on ceremonial goods such as joss sticks and prayer paper by up to 50% since its entry into Malaysia late last year, triggering a sharp decline in sales for local merchants during the Hungry Ghost Festival, one of the busiest trading periods for the sector.
Launched in Malaysia in late 2025 by PDD Holdings—parent company of the global discount platform Temu—Pinduoduo bypasses traditional supply chains by shipping factory-direct goods to Malaysian consumers, eliminating local distributors, wholesalers, and retailers. The price advantage has been particularly pronounced in the ceremonial goods market, where local wholesale costs are significantly higher.
During the Hungry Ghost Festival, which runs until September 11, Penang merchant Lee Chuan Wei reported festive sales at just 60% of previous levels. Meanwhile, the Federation of Sundry Goods Merchants Associations of Malaysia recorded sales declines of up to 30% among members in Johor and Kuala Lumpur. Industry observers attribute the drop directly to Pinduoduo’s aggressive pricing strategy.
The platform’s ability to undercut local prices stems from its direct-from-factory model, which avoids local overheads such as taxes, staffing, and physical infrastructure. Unlike competitors such as Shopee, Lazada, and TikTok Shop—each of which maintains a local registered entity, physical presence, and domestic supply chains—Pinduoduo operates with no local entity, no local staff, and no local tax footprint.
For consumers, the trade-off is delivery time. While local merchants offer immediate availability, Pinduoduo orders may take up to 10 days to arrive from Dongguan to Port Klang, with some shipments experiencing delays at the port. Yet, price-conscious buyers appear willing to accept the wait, particularly when the savings are substantial.
“A joss stick purchased from a factory-direct platform and a joss stick purchased from a provision shop perform the same function,” said one industry observer. “The local merchant cannot offer a better product, while the platform cannot offer faster delivery. On price alone—and price is the only variable that remains—the local merchant has no answer.”
The disruption has sparked calls for regulatory intervention. PKR MP Tan Kar Hing has urged the government to suspend Pinduoduo from Malaysian app stores, arguing that the platform competes from outside the regulatory perimeter. “The platform is not competing on unequal terms,” he said. “It is competing from outside the regulatory perimeter entirely.”
Echoing this sentiment, Eugene Sing, president of the Association of Praying Material Traders Malaysia, urged the government to adopt Indonesia’s policy model, which requires foreign e-commerce platforms to register locally and prioritize domestic merchants. Indonesia took similar action against TikTok Shop in 2023, forcing a structural merger with local platform Tokopedia.
The impact on Malaysia’s micro, small, and medium enterprises (MSMEs) is significant. These businesses employ nearly half of the country’s workforce and contribute approximately 40% to gross domestic product. The sectors most exposed to factory-direct cross-border pricing—sundry goods, provision shops, and prayer material traders—are low-margin businesses with limited reserves to withstand a prolonged price war.
In response, the government is taking steps to level the playing field. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed that a new law is being drafted to regulate e-commerce platforms. Deputy Finance Minister Liew Chin Tong stated that engagement with major platforms is underway to establish a fairer competitive environment for domestic businesses.
Industry stakeholders remain divided on the long-term implications. While some argue that Pinduoduo’s entry will force local businesses to innovate and improve efficiency, others warn of irreversible damage to traditional retail sectors if no action is taken.
For now, Malaysian merchants are left grappling with a stark reality: how to compete with a platform that can always offer a lower price. The question of whether price alone can sustain a business in the long run remains unanswered, but the pressure is mounting as the Hungry Ghost Festival draws to a close.
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