MyCC issued a finding of infringement against seven enterprises

3 October 2024

On 5 September 2024, the Malaysian Competition Commission ("MyCC") issued a finding of infringement against seven enterprises in the supply of safety equipment industry for participating in bid rigging cartels. The MyCC found that the seven enterprises were rigging bids in relation to four tenders issued by the Ministry of Defence Malaysia (MINDEF) from 2017 to 2020 worth approximately RM20 million.

The MyCC found that there were two cartel groups involved in the arrangement, with one of the enterprises playing a central role in all four tenders. The instigating enterprise had set the base prices for the tenders, while the other enterprises would submit a higher price than the base price on their bid submissions. The MyCC’s investigation also revealed that the enterprise, which was awarded with one of the tenders, had subcontracted the tender to another enterprise for 5% of the tender value.

The MyCC imposed a penalty of RM 446,092.95 on the enterprises and directed the enterprises to, among other things, enrol in a competition compliance program and training approved by the MyCC and to execute a Bond of Good Behaviour in the amount of RM 5,000 with the MyCC for a period of three years.