Cartel formation sabotages govt’s efforts to reduce people’s cost of living, says Armizan
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 (Dec 22), Armizan said the issue was not just about anti-competition and market manipulation but also its impact on the people’s cost of living.
ALSO READ: ‘Fowl’ dealings uncovered
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 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.
ALSO READ: MyCC actively monitoring chicken prices to ensure no ‘fowl’ play
“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 reporters on Saturday (Dec 23).
Earlier, the Papar MP officiated the Padang Pekan Papar synthetic running track and the Rahmah Sales programme at Padang Pekan Papar here.
On Friday, the media reported that the MyCC has imposed a penalty of nearly RM415.5mil against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 (Act 712) by forming a price-fixing cartel for poultry feed.
ALSO READ: Five companies fined RM415mil for fixing chicken feed price
Armizan said that next year, the ministry, through the MyCC, will beef up monitoring and enforcement to combat cartel practices, especially in three main sectors, namely food, agriculture and bid rigging.
Asked about action against other big cartels after this, he said that investigations into the matter were ongoing.
“I cannot disclose the details (about the cartels) because it is still under investigation, but I can say that it involves our efforts to combat cartel practices in the three main sectors.
“Therefore, we urge companies and traders to conduct their business responsibly, avoiding any practices that may cause annoyance to the people and the country,” he said. – Bernama
Leave a Reply