Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub speaks to the press at his first media conference at his ministry in Putrajaya, December 5, 2022. — Bernama photo
KUALA LUMPUR (Jan 12): Investigating cartel activities in the food and agriculture sector will be the utmost priority of the Domestic Trade and Cost of Living Ministry’ this year, said its minister Datuk Seri Salahuddin Ayub.
Salahuddin said these cartels have been taking advantage of the people and the government for far too long, and that it was time to put an end to the malpractice.
He added that the Malaysia Competition Commission (MyCC) has so far made various efforts and decisions on cartels and monopolies that resulted in issuing an estimated RM 175 million in financial penalties.
“This track record must continue. Cartels and monopolies must not be allowed to exist as they disrupt competition in the market for the benefit of business enterprises thus affecting the cost of living.
“Thus I urge for the MyCC to step up its efforts in eradicating these malpractices and as a member of the Cabinet, I can assure that the government will lend its full support for MyCC to eliminate, or if not to reduce the power of cartels and monopolies,” he said.
Addressing the issue in his speech to officiate Professor Richard Whish’s 2nd Lecture Series here today, Salahuddin said the MyCC will also focus on getting a merger control regime in place, as this is currently a missing piece of the competition law in Malaysia.
He said the merger control regime is crucial for the new government as the regime would ensure that consumers are not affected negatively by new monopolies resulting from mergers between major players.
“We have seen the impact of big mergers around the world and in our beloved country. We have to remember Malaysia is a trading nation with a growing economy. We cannot afford to have market concentration, especially in crucial areas such as services, retail, the food and agriculture sector.
“If left unchecked, mergers are also used to camouflage the formation of cartels. Thus, the MyCC has my full support in this and together, we will ensure that the amendments to the Competition Act 2010 and the Competition Commission Act 2010 are tabled in Parliament as soon as possible,” he said.
In ensuring that MyCC stays relevant with current and future trends due to the digital economy, Salahuddin also said the regulatory body will soon be carrying out market reviews to identify the root cause within the existing digital markets that distorts competition.
“It will look into the structure of the market including the conduct of the enterprises, suppliers and consumers in the supply chain and come up with proper recommendations to correct market behaviour,” he said. – Bernama