Malaysia’s Competition Act amendments propose new whistleblower protections and rewards to combat cartels, with the bill set for cabinet review soon.
PUTRAJAYA: Proposed amendments to the Competition Act 2010 include new provisions for whistleblower protection and rewards. Domestic Trade and Cost of Living Minister Armizan Mohd Ali said the cabinet has granted policy approval for the changes.
The draft bill is in its final stage of refinement before being resubmitted to the cabinet. Armizan expects to bring the “Blue Bill” to the cabinet towards the end of Ramadan.
It is then expected to be tabled at the next parliamentary sitting. The amendments comprise 14 proposed new provisions and improvements to strengthen the legal framework.
They aim to empower the Malaysia Competition Commission (MyCC) in combating cartel practices. The goal is to reinforce a fair, transparent and competitive market ecosystem.
Armizan explained the current Act has no specific provisions on whistleblower protection. The existing Whistleblower Protection Act 2010 does not apply to MyCC’s enforcement.
This is because action under the Competition Act is civil in nature. Act 711 only covers exposes relating to disciplinary and criminal offences.
“This proposal will give direct authority to MyCC to protect whistleblowers,” he said. This includes safeguarding the confidentiality of their identities and any related information.
The protection applies in MyCC proceedings, the Competition Appeal Tribunal, or any civil and criminal proceedings. The reward proposal would empower MyCC to offer incentives to individuals.
Incentives are for those who provide information leading to a violation or conviction. “This approach is expected to attract more proactive cooperation from the public and industry players,” Armizan said.
He said it would help uncover increasingly complex bid-rigging cartels and monopolistic practices. Armizan spoke after a signing ceremony for a Letter of Understanding between the Ministry of Youth and Sports (KBS) and MyCC.
He said the collaboration reflects a whole-of-government approach to curb cartel practices. The LoU focuses on bid-rigging in public procurement processes.
This is the sixth such LoU signed by MyCC with government entities. Previous agreements were with the finance, health, investment, and science ministries, and the Federal Territories Department.
Cooperation under the LoU covers three main scopes. These are preparing preliminary assessment reports on bid-rigging elements, providing training for procurement officers, and offering advisory services on competition risks.
Youth and Sports Minister Dr Mohammed Taufiq Johari said KBS has a large procurement scale. It involves about 50 tenders and an average of 300 direct quotations annually.
“With the signing of this LoU, KBS will be better prepared to ensure there are no leakages,” he said. He added that cartel practices can lead to sick projects and hinder youth and sports development.
