KUALA LUMPUR, 9 FEBRUARY 2022 - The Malaysia Competition Commission (MyCC) is aware of recent statements by certain influential groups of enterprises that have warned consumers amongst others, to prepare themselves for prices of food and non-food items to go up to 10% and also on the projected disruption of certain essential food item until Ramadhan and Aidilfitri allegedly due to the prolonged discussion on subsidy.

The MyCC views the statements by these entities with deep concern. It is to be noted that these entities have strong leverage in the relevant markets and as such, the said statements could amount to an attempt to shape the conduct of enterprises in the market. Such actions, if found to have the object of significantly preventing, restricting or distorting competition in the market, can raise competition concerns under the Competition Act 2010. For instance, signalling the market on potential price increase. The said statements of these entities are unnecessary and can cause fear and panic amongst consumers.

Price signalling may include invitation to collude or public statement that have potential anti-competitive effects of pricing disclosures and may amount to a violation under either generic prohibitions of anti-competitive agreements, or concerted practices prohibitions.

All entities should be minded to focus their efforts and join arms with the government in finding the best mechanism to address the issues. We would like to remind all groups especially federations of associations or associations of traders or enterprises to refrain from issuing similar statements and any similar statements to the effect in the future.

“MyCC will continue to actively monitor these situations and assess the impact of anticompetitive price signalling and price disclosures; investigate anti-competitive information disclosure and exchanges; and, where appropriate, take enforcement actions including imposing appropriate penalty and direction against the parties concerned,” said Iskandar Ismail, Chief Executive Officer of MyCC.