563 companies probed over trade cartel involvement

PETALNG JAYA: The Malaysian Competitive Commission (MyCC) is investigating 563 companies suspected of being involved in trade cartel activities, with a particular focus on an alleged RM2.66 billion public procurement bid-rigging scheme, said the Domestic Trade and Cost of Living Ministry. However, the ministry did not provide a timeline for the current investigations, nor did it provide details about which sectors the 563 companies operate in or details regarding the alleged RM2.66 billion bid-rigging scheme. Its minister Datuk Armizan Mohd Ali said since 2012, the commission has imposed RM647.9 million in penalties against 265 companies found guilty of being part of trade cartels. “All MyCC decisions regarding the aforementioned cases, including the RM647.9 million in financial penalties, are published on the MyCC website for public viewing, in line with the requirements of the Competition Act 2010 (Act 712), which mandates that such decisions be made publicly available,” he said in a written parliamentary reply. Armizan was responding to Misbahul Munir Masduki (PN-Parit Buntar), who asked the ministry to outline the government’s success in addressing trade cartels and subsidy abuse, and whether investigation results would be periodically released to the public. He added that the ministry, through MyCC, takes trade cartel issues very seriously. “Under competition law, trade cartel (activities) are considered the most serious offence as they constitute a form of economic sabotage, affecting not only the national economy but also consumer rights,” he said. On Thursday, Armizan said amendments to Act 712 are in the final stages and are expected to be tabled in Parliament by year-end. The proposed amendments include the introduction of more comprehensive and effective communication legislation, covering all industries under a unified legal framework. “This will include the introduction of a merger control regime that can prevent the formation of any cartels or monopolies in the market,” he said when winding up debates on the 13th Malaysia Plan in the Dewan Rakyat. Armizan said the ministry also takes note of suggestions to improve the detection and investigation process towards cartel and bid-rigging activities. He said MyCC has the mandate to carry out investigations based on four approaches. This includes through its ex-officio status, instructions from the minister, information received from the public, government industries or industry players or through information received from those involved in anti-competitive activities. Armizan said MyCC does not have the authority to instruct ministries or agencies to remove or exclude any bidders from the screening process for any tender if the bidders were not proven to have violated the Act.