| Malaysia is soon to have a competition regime, with the nation’s Parliament approving two bills – the Competition Bill 2010 and the Competition Commission Bill 2010 – on 21 April 2010. In addition to establishing competition laws and procedures, the two bills also establish a competition enforcement agency for the country, and it is believed that these measures will assist in making Malaysia an increasingly attractive investment destination.The Minister of the Ministry of Domestic Trade and Consumer Affairs has indicated that the new laws will be implemented by the end of 2011. Although the legislation will not extend coverage to include a merger control regime, the Competition Bill does prohibit cartels and abuses of a dominant market position, with the penalties for violation ranging from fines to imprisonment for individual violators. The Competition Bill also creates a private right of action for those injured by violations. The Competition Commission, meanwhile, is to have broad investigative and enforcement powers, as well as a Competition Appeals Tribunal (CAT) to hear all appeals of Commission decisions. The Prime Minister of Malaysia will have the authority to appoint members to the Commission, which will consist of a Chairman; four members representing the Government of Malaysia; and between three and five other members with experience and knowledge in matters related to business, industry, commerce, law, economics, public administration, competition, consumer protection or other suitable qualification as the Minister of Domestic Trade and Consumer Affairs may determine. David Longstaff, the partner-in-charge of Jones Day’s Singapore office, said of the development, “The Competition Bills are a welcome addition to, and a natural consequence of, Malaysia’s recent policies to deregulate and liberalize its economy. These policies have included the easing of restrictions on foreign ownership and the privatization of state-owned enterprises in traditional monopoly sectors such as power generation, telecommunication and transport.” |
