The Malaysian government is considering allowing foreign hypermarket operators such as Tesco to open convenience stores in the country, domestic trade and consumer affairs minister Datuk Ismail Sabri Yaakob said.

Malaysia has eased restrictions on foreign retailers since a 2002 ban on superstores aimed at protecting local traders. While Carrefour, Tesco, Dairy Farm and AEO operate hypermarkets in Malaysia, none have a significant presence in the smaller convenience store market. The deregulation would need cabinet approval.