Could extending MyCC officers’ penalty powers risk abuse or inconsistent enforcement?

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Concerns Raised Over Extended MyCC Penalty Powers and Enforcement Consistency

The Dewan Rakyat's passage of the Competition Commission (Amendment) Bill 2026, aimed at strengthening the Malaysia Competition Commission (MyCC), has brought to the forefront concerns regarding the potential for abuse and inconsistent enforcement stemming from extended penalty powers for MyCC officers. While the bill introduces 34 amendments to enhance the commission's capabilities, including the power to conduct market reviews and delegate functions, several Members of Parliament voiced apprehension about the proposed expansion of financial penalty imposition. These concerns highlight a delicate balance between equipping MyCC with robust enforcement tools and safeguarding against potential overreach, particularly in relation to micro, small, and medium enterprises (MSMEs).
Potential for Abuse of Power Regarding Financial Penalties

A significant point of contention during the debate was the proposed extension of MyCC officers' authority to impose financial penalties. Both government and opposition MPs expressed fears that this increased power could be susceptible to abuse. The core of this apprehension lies in the potential for such penalties to be applied unfairly or disproportionately, thereby impacting businesses without adequate recourse or due process. The existing Competition Act, under Sections 4 and 10, already addresses serious infringements like price fixing, market sharing, and bid rigging, but the new penalty powers introduce a direct punitive mechanism.
Calls for Clear Guidelines to Ensure Consistent Enforcement

In light of these concerns, calls were made for the implementation of stringent guidelines to govern the imposition of financial penalties. Chong Zhemin, representing Kampar, supported the bill's intent to grant MyCC powers to impose financial penalties and late payment charges, but stressed the necessity for clear, transparent, and consistent guidelines. This is particularly crucial to prevent undue burdens on MSMEs and smaller businesses that may lack the resources or understanding to navigate complex competition laws. The suggestion was made that penalties should be sufficiently deterrent for large companies, with a clear distinction drawn between major cartels deliberately distorting markets and smaller enterprises that might err due to a lack of awareness.
Suggestions for Enhanced Enforcement in the Borneo Region

Beyond the scope of penalty powers, the debate also encompassed geographical enforcement capacity. Isnaraissah Munirah Majilis @ Fakharudy, representing Kota Belud, proposed the establishment of a MyCC branch in Sabah. This suggestion, echoed by Datuk Abdul Khalib Abdullah and Datuk Andi Muhammad Suryady Bandy, aims to bolster enforcement of competition laws and expedite the handling of complaints within the Borneo region. The intent behind this proposal is to ensure more effective and timely action against anti-competitive practices across all parts of Malaysia, reflecting a broader need for comprehensive and accessible regulatory oversight.

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Could extending MyCC officers’ penalty powers risk abuse or inconsistent enforcement?

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