PAPAR, Dec 23 — Forming a cartel to gain profit without fair competition sabotages the government’s ongoing efforts to reduce the people’s living costs, said Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali.
Citing the case where five companies were fined RM415.5 million for fixing the price of poultry feed yesterday, he said the issue is not just about anti-competition and market manipulation but also its impact on the people’s living costs.
The cartel, which also impacted Malaysia's economy, colluded to raise the price of chicken feed, which constitutes 72 per cent of the cost of chicken production, resulting in an increase in its market price.
“This cartel is the largest (ever detected) since the establishment of MyCC (the Malaysia Competition Commission) in 2011. In the people's interests, the government, via KPDN and MyCC, is taking aggressive measures. This is because there will be a greater challenge next year when the targeted subsidies are implemented.
“Prices of goods will be floated and influenced by supply and demand. The existence of cartels manipulating the market for maximum industry profits is highly inappropriate and detrimental to the people,” he told the press today.
Earlier, the Papar MP officiated the Padang Pekan Papar synthetic running track and the Rahmah Sales programme at Padang Pekan Papar.
Yesterday, the media reported the MyCC imposed nearly RM415.5 million in penalties against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 (Act 712) by forming a price-fixing cartel for poultry feed.
Armizan said that next year, KPDN, through MyCC, will beef up monitoring and enforcement to combat cartel practices, especially in three main sectors, including food, agriculture, and bid rigging.
Asked about action against other big cartels after this, he said investigations into the matter are ongoing.
“I cannot disclose the details (about the cartels) because it is still under investigation, but I can say it involves our efforts to combat cartel practices in the three main sectors.
“Therefore, we urge companies and traders to conduct their business responsibly, avoiding any practices that may cause annoyance to the people and the country,” Armizan said.
— Bernama
