The Malaysian Competition Commission (MyCC) has announced it will take action against businesses that publicly disclose anticipated price increases. According to MyCC chairman Tan Sri Idrus Harun, such announcements by associations not only mislead the public but also encourage cartel-like practices, which disrupt market dynamics, harm the economy, and increase the cost of living.

Idrus stated that some associations attempt to mask their premeditated cartel agreements as projections or guidelines for future prices. He expressed concern that certain associations might secretly coordinate decisions while publicly presenting them as forecasts, fully aware that such conduct breaches competition laws.

He noted that these public announcements often reflect the collective decisions of an association’s committee members, who are competitors in the same industry, making such practices tantamount to anti-competitive agreements.

The issue has gained prominence as business operators cite rising operational and raw material costs as reasons for proposed price hikes. School bus fares are expected to increase by RM10 to RM20, driven by higher maintenance costs and a new minimum wage.

Similarly, over 10,000 school canteen operators are projected to raise food and beverage prices by more than 50%. Childcare centres are also planning to increase fees to cover operational expenses, while medical insurance premiums are forecasted to rise by 40% to 70% in the coming year.

Idrus warned that public announcements of price increases serve as signals for association members to coordinate cartel actions systematically. This behaviour suggests an intention to control market prices collectively, which harms consumers who depend on access to affordable essential goods and services.

He highlighted the serious implications of these practices, particularly in critical sectors such as transportation, healthcare, and food, which directly affect basic necessities. He described such tactics as both illegal and alarming, emphasising that MyCC will not hesitate to take firm action against any business, regardless of size, found to be engaging in or promoting cartel behaviour.

Looking ahead, Idrus revealed that amendments to the Competition Act 2010 will be tabled in Parliament next year to strengthen MyCC’s powers for investigating and enforcing measures against cartels. He urged association members to report any opposition to cartel activities, stressing that holding a position within an association does not legitimise conduct that exploits consumers and undermines fair market competition.

Idrus reaffirmed MyCC’s commitment to ensuring a fair and transparent market to safeguard the interests of consumers, reiterating that the commission will take all necessary steps to curb cartel behaviour and promote competition in the local economy.

(Source: The Malaysian Reserve)

• TAGS:
• Malaysian Competition Commission
• MyCC
• Price Hikes
• Rising Cost
• Tan Sri Idrus Harun