KUALA LUMPUR: The Malaysia Competition Commission's (MyCC) proposal to impose heavier penalties against bid-riggers will not only promote fair competition but also elevate the country's overall economic health, business groups said.
Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said MyCC's efforts to combat bid-rigging were crucial to enhance transparency and subsequently lead to sustainable economic growth.
Such a move, Soh said, will continue to encourage companies to compete based on merit, rather than through illicit collusion, thereby improving the integrity of the procurement process.
"MyCC's proposal to impose heavier penalties on those engaged in bid-rigging is a crucial step towards ensuring a level playing field for all businesses.
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"The introduction of more stringent penalties, alongside reputational damage and the loss of trust, serves as an effective deterrent to unethical practices.
"These measures will also reduce the risk of disqualification from future government contracts, encouraging businesses to maintain higher standards of ethics and compliance.
"Ultimately, fostering a fair and transparent environment benefits the broader business community and strengthens the nation's economy by ensuring that public funds are spent efficiently and that government projects deliver value," he said when contacted.
Yesterday, the New Straits Times reported that MyCC would work with the Finance Ministry to blacklist those involved in bid-rigging, besides making it compulsory for bidders to sign an integrity pact before entering a government procurement contract.
Its chief executive officer Iskandar Ismail said heavier penalties await those who violated the rules after signing the pact.
He added that they are also working to amend the Competition Act 2010 to reward those who report bid-rigging and the amendments were expected to be tabled soon.
Soh said that introducing an integrity pact before entering into government procurement contracts ensures businesses commit to ethical practices.
He said it would protect the reputation of businesses and build trust with government agencies, creating long-term opportunities for future bids.
"Breaking the rules of such an integrity pact is grossly detrimental to both businesses and the overall procurement process.
"Transparent and competitive procurement practices can attract more investments, as investors are more confident in a business environment free from corruption and unfair practices," it said.
FMM, he said, also concurred with MyCC and urged the government to expedite the implementation of the Government Procurement Act and ensure that its provisions apply not only at the federal level but also to states and government-linked companies.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said that rewarding informants and whistleblowers would encourage the public to report bid rigging, ultimately helping to eliminate the practice.
"MEF welcomes MyCC's initiative to amend the Competition Act 2010 to reward those who report bid rigging.
"This initiative will motivate both the public and businesses to report illegal bid-rigging practices to the authorities."
Syed Hussain said MEF supported the Domestic Trade and Cost of Living Ministry's plan to table amendments to the Competition Act 2010 and the Competition Commission Act 2010 in Dewan Rakyat, aimed at strengthening laws against bid rigging.
He added that the proposed Government Procurement Act would complement MyCC's efforts to combat bid rigging and enhance procurement integrity.