For the people: Armizan signing a symbolic plaque inaugurating the Padang Pekan Papar synthetic running track and Rahmah Sales programme at Padang Pekan Papar. — Bernama
PAPAR: Forming a cartel to gain profit without fair competition is an act of sabotage against the government’s ongoing efforts to reduce the people’s cost of living, says Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
Citing the case where five companies were fined RM415.5mil for fixing the price of poultry feed on Friday, he said the issue was not just about anti-competition and market manipulation, but also its impact on the people’s cost of living.
He said the cartel, which also had an impact on the country’s economy, colluded to raise the price of chicken feed, which constitutes 72% of the cost of chicken production, resulting in an increase in its price in the market.
“This cartel is the largest (ever detected) since the establishment of MyCC (the Malaysia Competition Commission) in 2011.
“In the interests of the people, the government, through the Domestic Trade and Cost of Living Ministry (KPDN) and MyCC is taking aggressive measures.
“This is due to the fact that there will be a greater challenge next year when the targeted subsidies are implemented.
“Prices of goods will be floated and influenced by supply and demand. The existence of cartels manipulating the market for maximum industry profits is highly inappropriate and detrimental to the people,” he told Bernama yesterday.
Earlier, the Papar MP officiated the Padang Pekan Papar synthetic running track and the Rahmah Sales programme at Padang Pekan Papar here.
On Friday, MyCC said it had imposed a penalty of nearly RM415.5mil against five poultry feed manufacturers for infringing Section 4 of the Competition Act by forming a price-fixing cartel for poultry feed.
Leong Hup International Bhd (LHI) has disputed MyCC’s findings.
In a filing with Bursa Malaysia on Friday, LHI said that they, along with Leong Hup Feedmill Malaysia Sdn Bhd (LFM), “strongly believe” that the regulator’s findings were without substance.
“In consultation with its external legal counsel, the company and LFM will take the necessary and appropriate action to challenge the decision and apply for a stay,” it said in its filing.
PPB Group Bhd said its 80%-owned subsidiary, FFM Bhd, would challenge MyCC’s findings of a price-fixing infringement by the company involving poultry feed.
“FFM is of the view that the decision is without merit. It will consult with its external legal counsel on the appropriate actions to take to challenge the decision,” the group said in a filing to Bursa Malaysia.
Armizan said KPDN, through MyCC, would beef up monitoring and enforcement to combat anti-competitive practices, especially in three main sectors, namely food, agriculture and bid rigging next year.
Asked about the action against other cartels after this, he said that investigations were ongoing.
