Competition Act 2010 will come into force 1st January 2012
What We Need
The Competition Act 2010 was passed by Parliament in April 2010 and will come into force in January 2012. It will promote a competitive environment and give foreign investors more confidence in the country's business practices. The Act will govern all firms, including government-linked companies (GLCs).
The law promotes the efficient functioning of the markets which will also benefit Malaysian consumers. its objective is to promote economic growth and promote competition, ultimately protecting the interest of consumers. There are two major prohibitions i.e. cartel agreements which restrict business practices, and abuse of dominant positions.
It will safeguard against practices that could drive companies out of business, allow lower entry barriers to promote entrepreneurship and growth of SMEs, efficient allocation and utilisation of resources.
To ensure successful implementation of the law, the Malaysian Competition Commission (MyCC) needs a solid structure, a clear and efficient process in implementing competition and of course, effective advocacy.
Therefore to lay the necessary foundation, the Government has established the MyCC. The Commission represents the interests of the Government, the private sector and consumers. The commissioners are respected individuals of high integrity and credibility, drawn from both the public and private sector.
There will also be a strong advocacy programme to support the Commission in educating businesses and the public over the Commission's role in stamping out cartels and anti-competitive behaviour.
As Malaysia heads towards 2020, the establishment of MyCC is a step forward not only in keeping up with global trends, but also gives more confidence to investors by creating a more vibrant competitive environment.