KUALA LUMPUR: The Malaysia Competition Commission (MyCC) today said the Bar Council's action to raise fixed scale conveyancing fees, while legal, goes against the spirit of competition.
MyCC has been in discussions with the Bar Council since 2015 to dismantle its fixed conveyancing fees, thereby setting a precedent for professional bodies with fixed scaled fees allowed by law.
"We acknowledge that our earlier efforts to persuade the Bar Council was unsuccessful. Be that as it may, we respectfully urge the Bar Council to reconsider, or at the very least, delay the implementation and continue the discussion with us" MYCC chairman Datuk Seri Mohd Hishamudin Yunus said.
"The Bar Council has the irrefutable potential to set a positive example by promoting competition within the market," he added.
MyCC has proactively taken positive actions to address the issues of fixed scale fees by professional bodies since 2013.
Through the Market Review on Fixing Prices/Fees by Professional Bodies carried out under section 11 of the Competition Act 2010 back in 2013, MyCC successfully directed or influenced more than five professional bodies to dismantle their fixed professional fees when it was found that they were not empowered by law to do so.
Furthermore, MyCC is of the opinion that the the imposition of fixed conveyancing fees appears inconsistent, especially when considering that litigation fees in Malaysia, are not subject to fixed rates.
The Bar Council's action also seems to contradict the government's efforts to enhance housing affordability of the citizens.
Initiatives like the Memorandum of Transfer (MOT) and stamp duty exemptions or discounts, Real Property Gains Tax (RPGT) exemption, and the Housing Credit Guarantee Scheme (HCGS), whilst they are implemented to specifically spur the housing industry, are also intended to alleviate the impact of rising living costs on the targeted groups.
"MyCC has received visits from various professional bodies and traders' associations that have sought our support for their proposals to fix fees or prices for their products and services. However, such an approach does not bode well with MyCC's vision. These bodies should strive for creativity and innovation to promote market efficiency, rather than relying on fixed scale fees.
"We should stay away from such an approach if we aim to become a developed nation with a strong and robust economy that rests on a dynamic marketplace that encourages innovation, efficiency, and competitive pricing practices," Mohd Hishamudin said.