Kuala Lumpur: The Ministry of Domestic Trade and Cost of Living (KPDN) has commenced an investigation into J&T Express following complaints from a group of franchisees alleging that the courier company’s franchisor had imposed unfair and oppressive penalty schemes on local operators.
Stampin MP Chong Chieng Jen said he met with KPDN officers recently to discuss the grievances raised by several J&T Express franchisees in Sarawak, who claimed they had been subjected to what they described as “predatory penalties” imposed by the franchisor.
According to Chong, the franchisees, who were appointed between 2023 and 2024, operate parcel delivery services under franchise agreements with the foreign-owned franchisor.
“They alleged that the company had unilaterally introduced various penalty schemes, described as liquidated damages, which they viewed as exploitative and financially burdensome,” he said.
He said the affected franchisees had previously attempted to negotiate with the franchisor and objected to the penalties, but were unsuccessful.
“The franchisees approached me about two weeks ago to highlight their plight and seek assistance over the penalties imposed on them,” Chong said in a statement after meeting ministry officials.
Chong said he subsequently raised the matter in Parliament, after which KPDN informed him that it had taken note of the complaints and initiated an investigation into the franchisor.
He said ministry officers would contact the affected franchisees to obtain further information as part of the investigation.
Chong noted that franchise businesses in Malaysia are governed under the Franchise Act 1998, which empowers KPDN to oversee franchise arrangements and ensure they are conducted fairly to protect the interests of franchisees.
While welcoming foreign investment, Chong stressed that local entrepreneurs’ rights must also be safeguarded.
“We welcome foreign investment in Malaysia, but at the same time, local entrepreneurs and businesses must be protected from unfair business practices,” he said, expressing appreciation for KPDN’s prompt response.
He added that many of the affected franchisees are local Sarawakians and Malaysians who depend on the business for their livelihood.
J&T Express, a courier company founded in China, expanded its operations into Malaysia in 2023. Chong also noted that the company has reportedly come under scrutiny in China, where the country’s postal regulator recently launched an investigation into the firm over alleged safety management failures.
