KUALA LUMPUR, 22 JUNE 2022 – A key mandate of the Malaysia Competition Commission (MyCC) is to support the Government's effort in enhancing the procurement process by combating anti-competitive practices such as bid rigging. In the last decade, MyCC has been working closely with other stakeholders such as the Ministry of Finance, the Malaysian Anti-Corruption Commission (MACC), amongst others in tackling the issue of leakages in government procurement.

The newly released circular on Integrity in Public Procurement (PK 1.6) by the Ministry of Finance marks a major milestone for MyCC that was made possible through ongoing engagement with relevant stakeholders and advocacy efforts on the Competition Act 2010 over the last decade. Under the new circular which came into effect on 1 June 2022, companies interested to participate in government tenders must adhere to the Competition Act 2010, amongst other legislation cited in the circular. Government agencies are also now required to pay attention to the issue of bid rigging cartels in government procurement and report to MyCC if there are any signs of bid rigging pacts.

“In the course of our work over the years, we discovered that apart from corruption and fraudulent actions which are commonly associated with leakages, big rigging is a major threat to public leakages. This form of cartel occurs when two or more competitors conspire to manipulate the procurement process, denying the opportunity for genuine bidders and distorting the competition process altogether. We are grateful for the weight given to the Competition Act 2010 in the new PK 1.6 circular, for which we are certain will strengthen our enforcement efforts in combating bid rigging activities in government tenders.” said Iskandar Ismail, Chief Executive Officer of MyCC.

Following the implementation of this circular, individuals or companies found to be involved in bid rigging conduct in public procurement will be blacklisted by the Ministry of Finance for a period of five (5) years. This has been met with mixed reaction amongst stakeholders, particularly in relation to its effectiveness in combating such activities. It must be highlighted that this is a step forward by the government in sending a strong message that bid rigging cartel activities will not be tolerated.

The PK 1.6 circular will be discussed in more detail at the 3rd Malaysia Competition Law Conference 2022 that will be held on 23 and 24 June 2022 at Sunway Resort, Selangor. For more information on the Conference, kindly visit our website at www.mycc.gov.my

Source: www.mycc.gov.my