KUALA LUMPUR: Over 500 companies are being investigated for fraudulent bids involving government procurement worth over RM2bil, said Malaysia Competition Commission (MyCC) chief executive Iskandar Ismail (pic).
He said these investigations were lengthy as the companies involved had extensive networks. Probes were also hampered due to movement control order (MCO) constraints.
Iskandar noted MyCC is investigating companies involving cartels and not individuals.
“There are instances where one tender can have bids from 50 companies.
“Once the case is investigated, and if there exists a violation of the law, we can fine the company involved,” he told reporters after the launch of the MyCC Strategic Plan 2021-2025 that was officiated by Deputy Domestic Trade and Consumer Affairs Minister Datuk Rosol Wahid here yesterday.
Iskandar said some players in the port logistics sector were also being investigated for cartel activities.
These include competition issues related to container storage, he said.
Meanwhile, Rosol said that the ministry was in the process of amending the Competition Act 2010 and Competition Commission Act 2010 next year.
Both laws are important to equip MyCC with powers needed to deal with competition issues more effectively.
“They will also give more authority to MyCC to review mergers which will significantly reduce competition in the market as there is a high likelihood for increased mergers and acquisition activities in the post-pandemic landscape.
“This effort will have a positive impact on integrity as it creates healthy and transparent competition, in turn giving investors confidence,” he said.
Earlier, at a forum, titled “Exploitative Pricing - Striking A Balance Between Competition and Industrial Policy” chaired by Star Media Group advisor Datuk Seri Wong Chun Wai, the panellists agreed that the price hikes of food and other essential items were a global problem as a result of the Covid-19 pandemic.
The reasons cited included disruption of supply chain, insufficient production and even closure of the manufacturing line following the implementation of lockdowns across the world.
However, Iskandar said these issues should not be used by businesses to increase prices drastically to recoup losses during the MCO.
He cited unreasonable prices of food, including fish dishes, and transportation costs in Langkawi.
Another panellist, academician Prof Datin Paduka Dr Fatimah Mohamed Arshad called for greater emphasis on food production and food security.
She said small farms could play bigger roles in food production.
Wong noted Malaysia’s food bill was a whopping RM55.5bil in 2020.
Expressing concern, he feared the amount could be higher now due to the currency exchange rate and the increase in food prices.
“Malaysia cannot keep on going like this. We need to wake up,” he said.