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Mycc Annual Report 2018 Download COMPETITION ECONOMIC ACT DEVELOPMENT INNOVATIVE COMPLIANCE RESPONSIVE INCLUSIVE GROWTH EFFICIENT Promoting Competition, Protecting You ANNUAL REPORT 2018 The human mind is the most valuable asset underlying MyCC’s efforts to help Malaysian businesses thrive. Unlocking the innovation and creativity of the next generation is key to the opening of opportunities for us in shaping the future. This idea is expressed in modern graphical visuals, which displays a geodesic dome that signifies the encompassing role of MyCC in safeguarding a competitive environment for local businesses. COVER RATIONALE Annual Report CONTENTS 1. MINISTER’S FOREWORD 2. CHAIRMAN’S MESSAGE 3. CHIEF EXECUTIVE OFFICER’S MESSAGE 4. CORPORATE INFORMATION • Introduction 08 • Vision and Mission 08 • Functions and Powers of the MyCC under the Competition Commission 09 Act 2010 (Act 713) • Scope of the Competition Act 2010 (Act 712) 10 • Main Prohibitions under the Act 712 11 • The MyCC as Quasi – Judicial Body 13 • MyCC’s Working Committee and Special Committee on Competition 14 5. TOP MANAGEMENT • MyCC’s Organisation Chart 17 • Members of the Commission 18 6. MILESTONES SINCE FORMATION 25 7. 2018 MAJOR ACHIEVEMENTS • Investigations and Enforcement 29 • Advocacy Programmes 33 • International Programmes 45 • Publicity and Public Relations 51 9. FINANCIAL STATEMENTS 54 02 Malaysia Competition Commission MyCC Annual Report 2018 MINISTER’S FOREWORD THE EXISTENCE AND CONTINUOUS EFFORTS TO EMPOWER THE AGENCY WITH GREAT POTENTIAL SUCH AS MYCC PROVE THAT THE GOVERNMENT IS VERY SERIOUS AND COMMITTED IN ITS EFFORTS TO CREATE A CONDUCIVE AND COMPETITIVE BUSINESS ENVIRONMENT IN MALAYSIA. Datuk Seri Saifuddin Nasution Ismail Minister of Domestic Trade and Consumer Affairs Malaysia Competition Commission MyCC Annual Report 2018 03 MINISTER’S FOREWORD Malaysia began enforcing the Competition helping policy makers, business leaders and Act 2010 (Act 712) on 1 January 2012 with the other stakeholders around the world to shape establishment of the Malaysia Competition their economic strategies. This shows that the Commission (MyCC). Today, MyCC is one of the Government is on the right track in building a key agencies under the Ministry of Domestic competitive and sustainable economy in the Trade and Consumer Affairs (MDTCA) which future while improving the living standards of regulates the country’s competitive ecosystem the people. to ensure that the people benefit from the Another positive signal for the Government is continuous improvement and prosperity of the to see Malaysia maintained its position on top nation’s economy. 30 among 190 economies around the world, The core provisions contained in Act 712 is as reported in the World Bank Doing Business the same as most other countries with similar 2018 Report. This proves that the ongoing laws, with the exception of provisions relating reform initiatives are on track to improve the to mergers and acquisitions. MyCC has taken competitiveness, productivity and governance significant steps to improve the Act to include to ease doing business and promote provisions relating to mergers and acquisitions investment, which is believed to accelerate and the process is expected to be finalised by economic development and improve the 2020. welfare of the people and the country. The existence and continuous efforts to In addition, the prosperity of this competitive empower the agency with great potential and optimistic country demonstrates the such as MyCC prove that the Government is importance of MyCC’s role in the country as very serious and committed in its efforts to healthy and fair competition is a backbone to create a conducive and competitive business Malaysian business entities especially Small environment in Malaysia. At the same time, it and Medium Enterprises (SMEs) where it reflects the Government’s concern in providing helps and provides them with opportunities more protection to consumers. MyCC is to evolve and innovate. The implementation certainly seen as very relevant in assisting the of Act 712 by the MyCC is believed to have Government to address the issues of cartels contributed significantly to enhancing the and monopolies in the local market especially country’s competitiveness through efforts to in terms of abuse of dominant power by large eradicate anti-competitive behaviour and to companies. This is in line with the Government’s help promote world-class business practices commitment to help ease the burden of the while facilitating the country’s rapid economic people in handling and managing the cost of growth. living. MDTCA, as the Ministry which responsible in Amid the transformations and disruptions ensuring that consumers are protected and brought about by the Fourth Industrial enterprises operate efficiently, innovatively Revolution (4IR) involving all stakeholders, and competitively, will continue to strengthen including individuals, Government and cooperation with MyCC in ensuring healthy and businesses, Malaysia has improved its position fair competition in the market for the benefit of to 25th in the Global Competitiveness Index enterprises, consumers and nation. report conducted by the World Economic Forum. This yearly updated report is crucial in 04 Malaysia Competition Commission MyCC Annual Report 2018 CHAIRMAN’S MESSAGE In 2018, the MyCC had organised more than 20 advocacy and engagement programmes with the public and private sectors to increase the level of awareness especially amongst enterprises on the importance of fair competition in the market. Dato’ Seri Mohd Hishamudin Md Yunus Chairman Malaysia Competition Commission MyCC Annual Report 2018 05 CHAIRMAN’S MESSAGE The Malaysia Competition Commission (MyCC) MyCC was appointed to be part of the National was established in mid-2011 as a regulatory Cost of Living Action Council (NACCOL) and body tasked with ensuring a fair and conducive Jawatankuasa Kajian Semula Dasar Monopoli process for competition in the country. Over Barangan dan Perkhidmatan in order to access the years since its formation, MyCC have and advice the Government on issues related faced and overcome many challenges and to monopoly. raised the awareness among businesses as The MyCC is actively engaged with various well as the society at large pertaining to the competition authorities worldwide on importance of complying with the Competition discussions regarding multiple aspects of Act 2010. MyCC, an agency under the Ministry competition including mergers and acquisitions of Domestic Trade and Consumer Affairs (M&A). The Commission is currently studying (MDTCA) has been fostering fair competition for a comprehensive amendment to be made among Malaysians through its numerous to the Competition Commission Act 2010 and investigations and advocacy programmes. To the Competition Act 2010 in order to bolster date, MyCC remains as the Government’s vital its function and powers that includes mergers focal point on matters related to competition. control regime. In 2018, the MyCC had organised more than In cognisance of the current borderless 20 advocacy programmes involving the public business landscape, the Commission is and private sectors to increase the level of equipping itself with new and dynamic awareness especially amongst enterprises strategies that will help ensure effective on the importance of fair competition in the enforcement and a competitive business market. As part of its mandate, the MyCC environment in Malaysia. The Commission is had also conducted investigations against consistently steadfast in realising its mission to several enterprises suspected of abusing their be the leading competition authority in Malaysia dominant positions and price fixing. MyCC through efficient and effective implementation successfully issued a Proposed Decision of its mandate, with a commitment towards against Dagang Net Technologies for abusing ensuring a conducive and fair competition its dominant position and issued out a Final culture that makes markets work well for Decision to seven tuition and day care centres consumers, businesses and the economy. for collusion in price fixing. While being a monopoly is not an offence under the Competition Act 2010, abuse of dominant position is an infringement under this Act. In this new era, issues on abuse of dominant position is placed at the highest level of priority by the MyCC. Consequently, the 06 Malaysia Competition Commission MyCC Annual Report 2018 CHIEF EXECUTIVE OFFICER’S MESSAGE To mark its 7th Anniversary, the MyCC conducted a series of road tours with the theme #BebasKartel, that aimed at creating awareness among industry players and the public in general about MyCC’s role and its functions. Encik Iskandar Ismail Chief Executive Officer Malaysia Competition Commission MyCC Annual Report 2018 07 CHIEF EXECUTIVE OFFICER’S MESSAGE The Competition Act 2010 (Act 712), which To further strengthen its role, the MyCC has came into force on 1 January 2012 aims to embarked on a staff exchange programme facilitate the country’s economic development with other competition authorities in an effort through a fair competition process. For seven to address competition issues and to share years, MyCC has faced many challenges in knowledge and expertise. This year, MyCC optimising the Act especially in resolving issues has engaged with the Australian Competition on competition. MyCC will require time to and Consumer Commission (ACCC) and plans inculcate understanding among stakeholders to participate in attachment programmes with and public
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