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Malayan Flour Mills announces order to pay RM70mil MyCC price-fixing fine

KUALA LUMPUR: Malayan Flour Mills Bhd's joint venture company Dindings Poultry Development Centre Sdn Bhd (DPDC) today announced that it has failed in its bid to hold off paying a RM70 million fine by Malaysia Competition Commission (MyCC) for forming a price-fixing cartel.

In a filing with Bursa Malaysia Securities Bhd today, the company said the Competition Appeal Tribunal (CAT) last Friday dismissed DPDC's application for a stay of the MyCC's decision on the fine pending the disposal of DPDC's appeal to the CAT against the MyCC's decision with no order as to costs.

DPDC will file a judicial review application at the High Court against the CAT decision on the stay application.

The company's share price was down 1.8 per cent to 55 sen earlier, giving it a RM681.5 million market capitalisation.

On Friday,  Leong Hup International Bhd and PPB Group Bhd announced that their chicken feed miller units failed in their bid to hold off paying fines totalling RM200 million imposed by MyCC.

Leong Hup Feedmill Malaysia Sdn Bhd was imposed the highest fine amount between the five companies, at RM157.5 million.While, PPB Group's FFM Bhd was fined RM42.7 million.

Leong Hup Feedmill will also file an application for leave for a judicial review against the CAT's decision on the stay application.

While FFM said it would consult its legal counsels on the appropriate action to take following the CAT's dismissal of its application.

In December 2023, the MyCC imposed fines totalling RM415 million against Leong Hup Feedmill Malaysia Sdn. Bhd, PPB's FFM Bhd, Gold Coin Feedmills (Malaysia) Sdn. Bhd, Malayan Flour Mills's DPDC and PK Agro-Industrial Products (M) Sdn Bhd for forming a poultry-feed price fixing cartel.

Besides fines, the five were also directed to cease participation in the cartel and submit reports on poultry feed price increases and decreases.

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