For 7 years, MyCC has been watching the interest of consumers and SMEs. Its CEO, Datuk Abu Samah Shabudin, talks about its successes and future. roles
Question: Can you explain the role of the Malaysia Competition Commission?
Answer: The Malaysia Competition Commission (the Commission) is a statutory body established under the Competition Commission Act 2010, and is responsible for enforcing the Competition Act 2010 (CA 2010).
As a regulatory body, the Commission has quasi-judicial powers.
Q: What are the main objectives of CA 2010?
A: CA 2010 serves to protect the competitive process by ensuring that it is present in the market to improve quality, provide wider choices, encourage creativity and innovation, and ensure that prices remain competitive.
Q: What does CA 2010 outline and how does it benefit people?
A: CA 2010 forbids any conduct which may harm or distort competition, and they include anti-competitive agreements and abuse of dominant position.
It is enacted to protect the interest of consumers by ensuring that there is competition in the market which, in turn, promotes efficiency, innovation and entrepreneurship, and ultimately economic development in Malaysia.
Q: In seven years since MyCC was established, what are some of its major achievements?
A: The Commission has imposed financial penalties totalling more than RM28 million against several companies found infringing CA 2010.
In addition, the Commission has also organised and participated in several international conferences involving local and international experts.
The Commission has organised a Moot Court Competition on Competition Law for university students as well as successfully completed a few market reviews on several industries in Malaysia.
Q: What are the latest enforcement activities?
A: The Commission is investigating 16 cases involving the pharmaceutical, food, transport, services and other industries.
It is also looking into anti-competitive behaviour in government procurements, namely bid-rigging.
Among the latest cases that the Commission has investigated over involvement in price-fixing agreements are the General Insurance Association of Malaysia (PIAM) and its 22 members, tuition and daycare centres in Subang Jaya and sand operators in Kelantan.
On Dec 28 last year, the Commission’s decision against MyEG Services Bhd for abusing its dominant position was affirmed by the Competition Appeal Tribunal.
Consequently, MyEG has to pay fines totaling RM7.1 million.
Q: Besides investigations and enforcement, MyCC also conducts market reviews. Can you tell us about some of the latest reviews and how this helps MyCC in enforcing the Act?
A: The Commission recently completed two market reviews in the pharmaceutical sector and building materials sector.
By conducting such reviews, the Commission and other stakeholders will be able to better understand the structure of the markets and allow the Commission to determine whether the conduct of enterprises have the tendency to be anti-competitive. The public can obtain copies of the reviews at www.mycc.gov.my
Q: What has MyCC achieved in cultivating a culture of compliance within the business community?
A: The Commission has conducted more than 200 advocacy programmes involving Small and Medium Enterprises (SMEs), government agencies, higher-learning institutions and also in secondary schools, which has led to increased awareness on the roles of the Commission and CA 2010.
We have also developed the e-Learning System on Competition Compliance for SMEs, which aims to promote compliance of the Act among SMEs, which make up more than 90 per cent of business entities in the country.
Q: Congratulations to MyCC on its 7th anniversary. Can you share some of the programmes in the pipeline?
A: Some of the programmes which we have conducted in conjunction with the anniversary celebration include the roadshow themed #BebasKartel, which is aimed at states that have low awareness on the Commission’s role and CA 2010.
We have also organised several contests, such as an essay-writing contest, a choral-speaking contest, a photography contest and a cycling contest, known as the MyCC Cycle Cyberjaya “Kayuh Kaw Kaw 2018”.
Q: What are the objectives of these competitions and how do you gauge their effectiveness?
A: The above contest and events have received encouraging response from students at secondary schools and universities. Their participation reflects their interest on competition laws and we hope to attract more students and spread the importance of competition to more people. The winning entries will be used as advocacy tools by MyCC.
Q: What do you see as MyCC’s future challenges?
A: The Commission is concerned as it is frequently investigating anti-competitive conducts which are increasingly complex in technical markets and industries.
For example, the rapid rise of disruptive technologies, such as e-commerce and the likes of it, that do not necessarily conform to traditional structures.
Another challenge for the Commission is the lack of policy harmonisation between business regulators in Malaysia, which can sometimes result in cross-jurisdictional issues.
Q: What is MyCC’s future direction?
A: The Commission remains committed in protecting the process of competition in Malaysia through vigorous enforcement, research and continuous improvements to its advocacy programmes, which we conducted for the past few years.
The Commission is also committed to educate the business community, especially SMEs, through compliance programmes to ensure that theyobey competition laws when conducting their businesses.
This will ensure that the government’s stated goal of nurturing a competitive culture in Malaysia for the benefit of consumers can be achieved.
The Commission will not tolerate companies found to be in breach of CA 2010.
Any company found guilty will be penalised a sum not more than 10 per cent of their total worldwide turnover.
The Commission’s priority areas currently involve identifying issues that relate to the cost of living in several key industries in Malaysia, such as the pharmaceutical, transport, food, services, e-commerce and construction sectors. The Commission is also in the process of reviewing our legislation to meet the changing market dynamics, according to international best practices.
Q: This is your last year as MyCC’s chief executive officer. What are your hopes for the future?
A: It is my hope that the Commission forges ahead in its duties, and that more people are aware of the work we do.
I hope that this Commission will become among the country’s best and most active enforcement agencies. I also hope that the Commission will be expanded in line with its bigger scope of duties in protecting the competition process in the market.
Q: Is there anything else you like to add?
A: Besides consumers, the enforcement of competition law will also benefit SMEs. It is a wrong perception that monopoly is not allowed. The Act allows monopoly, but does not allow the bullying of competitors, especially SMEs by the monopoly.
I wish to remind the public that they can lodge complaints on competition concerns with the Commission at complaints@mycc.gov.my or come directly to our office.