SERC Consultative Panel Discussion

“Malaysia’s Competition Act 2010”5th January 2012, 2.30pm

Moderated By

Dato’ Dr. Ir. Andy Seo

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Socio-Economic Research Centre

Presented by

SHILA DORAI RAJshila@mycc.gov.my

Malaysia Competition Commission (MyCC)

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Competition Law 2010

Synopsis

Part IBackground

Part IIProhibitions

Part IIIMalaysia

Competition Commission

• Need for competition law – an enforcement issue• Worldwide enforcement• Back home in Malaysia

• Application• Prohibition 1: Agreements which distort competition• Relief from liability• Prohibition 2: Abuse of dominant Position• General Exclusion

• Competition law eco system• Guidelines and competition champion• Complaints and investigation• Sanctions and appeal

Part I - Why Competition Law?Part I - Why Competition Law?

HEALTHY COMPETITION

Healthy competition will make the

economy more efficient and dynamic

PROMOTE COMPETITION Promote competition to increase private investment and market

dynamism

COMPETITIVE ECONOMY

Creating a competitive domestic economy

Competition Law provides a regulatory framework

against market manipulation and cartel

practices

Background of Competition Law in Malaysia

Policy discussions on Competition regime since 1995!

1 Competition Act 2010 (Act 712)

2 Competition Commission Act 2010 (Act 713)

Fair TradePractices

Policy(2005)

Encourage growthof firms through

efficiency andinnovation

&Prevent anticompetitive

practices─ collusion/cartel

activities andabuse of market

power

Mandate for development and implementation of

competition policy & law:

Eighth Malaysia Plan(2001 -2005)

Ninth Malaysia Plan(2006 -2010)

Tenth Malaysia Plan (2011 – 2015)

Background: What’s in it for me?

Government Correlation between competition and GDP Free Trade Agreements (FTAs)

Businesses Product spurred by efficiency and innovation Level Playing Field(big and small, foreign and local) Protect from abuses by Dominant Firms

Consumers Lower prices Better products and innovation Freedom of choice

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In ASEAN, Philippines Laos, Cambodia, & Myanmar are the

only countries yet to implement Competition Act

Philippines has competition provision in its 1987 Constitution

but no effective framework

Degree of implementation of Competition

Law in Asia

Having the Act alone is not enough, we need to IMPLEMENT