Bangladesh is one of Malaysia’s strategic trade partners. Its economy has been expanding about 5-6% annually; with higher per capita income of USD1,600 (2010) and a high income remittance of USD11 billion (2010). There is good prospect for halal products as Muslims comprise 80% of its population of 166 million. There is an increasing number of better organised retail outlets and convenience stores that offer a wide variety of imported products. An additional plus-factor is the Bangladeshi workers’ exposure to and familiarity with Malaysian products. From 2001 to 2010, Malaysia-Bangladesh trade increased almost ten times with an average growth rate of 24.7%. Bangladesh is Malaysia’s third largest trading partner in the South Asia region.

In terms of global trade, Bangladesh ranked as Malaysia’s 22nd major export destination and 74th major import source. Total trade between Malaysia and Bangladesh for 2010 was USD1.28 billion, representing an increase of 56.1% from 2009. In 2010, exports to Bangladesh amounted to USD1,257.93 million while imports from Bangladesh totalled USD26.66 million.

Malaysia’s major exports to Bangladesh in 2010 were refined petroleum products, palm oil, chemicals and chemical products, electrical and electronic products and manufactured metal products. There is great export potential for other products such as palm oil products, healthcare and pharmaceutical products, processed food and beverages, electrical and electronic products, ICT, education, furniture and fast-moving consumer products.

Import items from Bangladesh to Malaysia include processed food, textile and clothing, vegetables, roots and tubers, electrical and electronic products, seafood, chemicals and chemical products, beverages and tobacco, crude rubber, machinery, appliances and parts as well as rubber products.

The Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) organised the Second “Showcase Malaysia 2011” in collaboration with Malaysia External Trade Development Corporation (MATRADE) and Malaysia South-South Association (MASSA) from 10 to 12 June 2011 at the Ruposhi Bangla Hotel, Dhaka, Bangladesh. This showcase was held to create awareness among Bangladeshi consumers of Malaysia’s high quality products and services and to strengthen the bilateral trade between Malaysia and Bangladesh.

“Showcase Malaysia 2011” was officially opened on 10 June 2011 with the inauguration ceremony officiated by Hon. Dr. Dipu Moni, MP, Foreign Minister of Bangladesh. Other VIP Guests at the Opening Ceremony were YB Dato’ Tan Lian Hoe, Deputy Minister of Domestic Trade and Consumerism of Malaysia and H.E. Jamaluddin Sabeh, High Commissioner of Malaysia to Bangladesh.

40 companies participated in this showcase, offering various Malaysian products and services in palm oil, machinery and industrial products, telecommunication, ICT, food and beverages, tourism, electrical and electronics products, automotive parts and accessories, herbal products, cosmetics, toiletries, healthcare and pharmaceutical products and services as well as furniture and education services.

MASSDA’s flagship residential development “Fortune Park @ Son Tra” is themed “A Residential Development Inspired by Nature”. It is a gated area comprising double- storey link houses, double-storey link villas and villas featuring contemporary designs by Malaysian architects and consultants.

Phase I of the double-storey link houses was handed over to house owners on 17 August 2010. Phase 2 of its residential development is nearing completion ahead of schedule with the double-storey link houses completed and in the process of being handed over to house owners. The double-storey link villas and villas will be handed over in the third quarter of 2011.

The first part featured in our April 2011 issue highlighted key factors such as Political Stability, Economic Strength, Attitude of Welcome and Government Policies. The remaining key factors are:

(5) INFRASTRUCTURE
Once the Asian investor is satisfied with factors 1 to 4, his next concern will be infrastructure, more specifically its availability, reliability and cost, all of which will directly affect his manufacturing costs.

In this context, the word “infrastructure” covers a host of items:

1. Land Issues:
   • An investor’s construction costs could be seriously affected by the nature of the land, e.g. filled land, cut land, etc.
   • Legal statutes of ownership of property should be well defined. Ownership (Freehold Status) of land, both individual and residential, is an added advantage in attracting FDI. However, what is more important is the speedy approval of land titles and the investor company’s ability to charge these to banks as guarantees against loans, etc. These are greater overriding factors, of importance to investors, than the stark issue of ownership per-se.
   • Land Lease periods: Length/duration of the lease period is a critical factor.
2. Logistic:
   Availability of roads/rail, ports and shipping – from the ports (air and sea) to the area of production and to main markets. Also, how prone are the land and inland transport routes to floods, landslides and other natural or man-made catastrophes, e.g. terrorist attacks.
3. Electricity:
   Not only the availability and costs but also issues such as voltage fluctuations, brown outs, black outs, etc.
4. Water:
   Availability, quality, cost and reliability of supply, and in some cases, treated or untreated water.
5. Telecommunications:
   Telephone, fax, email services, etc. for internal and international communication. Also, for advanced operations, the availability of computer linkages from factory direct to parent companies abroad and international markets.

Critical to points (a) to (e), and other factors needed for operations would be the cost of these facilities. How competitive are the costs when compared to neighbouring environments as well as the Asian environment?

(6) LABOUR
The assumption that Asian companies are investing in less developed countries because of cheaper labour is true to a certain extent. Labour in Least Developed Countries (LDCs) could sometimes be cheaper than those in developing Asian nations. However, a survey of West African nations has revealed that some West African nations boast labour costs that appear higher than those in Asian nations such as Indochina, Indonesia, India, China, etc.

Apart from availability and labour costs, other key considerations include education standards, trainability of workers, work ethics of the population, harmony of the labour environment, (relatively free of labour/management conflict), influence of politics and politically-free labour movement or labour unions, availability of professional and technical personnel among locals, productivity levels that can be achieved due to work culture, etc.
(7) BANKING AND FINANCE
Are all the instrumentalities required for modern international trade and investments available?
Are there sufficient numbers of banks with international connections to conduct competitive international business? What are the costs of funds and how difficult is it to access these funds?

Are branch banks of major trading and investment nations operating in the country? A foreign investor with the knowledge that a bank from his country or a multinational type bank is located in that country will be more confident of his investments.

(8) GOVERNMENT BUREAUCRACY 
It does not matter as to how efficient a government thinks its investment machinery is. What is critical is the perception of businessmen, especially those already operating on the ground. What is the extent of bureaucracy, not only at national or central levels, but also at district, local council and municipal levels? Another factor would be the presence of pro-investor “Government to Government” agreements such as Investment Guarantee and Double Taxation Treaty.

Corruption
Unless there is political will to wipe out corruption, this will continue to be the cancer that sucks at the soul of nations trying to move into rapid modes of growth by attracting FDI. Governments from LDCs interested in reducing corruption should examine the concept of “e-governance”, for this can be a strong ally in the fight against corruption.

(9) LOCAL BUSINESS ENVIRONMENT
This expression covers a multitude of factors, including local lawyers, secretarial service, accountants, architects, building contractors, local consultants, ancillary and supporting industries/facilities and their overall quality and costs. Just-in-time products and the Zero Inventory System may provide the competitive edge. Is there a list of potential partners from which the investor can choose from, or conversely choose to ignore if he has his own source of contacts for partners? Finally, are local businessmen investing in their own country, holding back or moving funds abroad?

(10) QUALITY OF LIFE
Last, but by no means least, is quality of life. What locals and long-staying expatriates accept as normal can be quite a “culture shock” to expatriate staff of new investors proposing to set up a project in an LDC. Considerations include the availability of education facilities for expatriate children, medical and health facilities, proper housing, safety of family members, etc. Keeping in mind that with “economic conditions” being more of less equal in several LDCs or African nations, the country that provides a better quality of life may have the competitive edge to attract the Asian Investor.

THE 10 PLUS FACTOR: TAX HOLIDAYS
The 10 factors above do not include the issue of Tax Incentives or Tax Holidays. This underscores the fact that although Tax Holidays are critical to the investor, it is not a given and becomes important only if he makes a profit. The 10 checkpoints above are critical to the investors’ ability to make profits. However if a number of LDCs offer equally competitive viable/profitable bases to the Asian investor, than the issue of Tax Holidays or the amount of Corporate Tax he has to pay, will be a deciding factor in his decision to invest.

SPECIAL NOTE
If you would like to know more about investing in developing nations, or wish to improve the investment environment of your country and attract Asian investors, please contact:
Dato’ J. Jegathesan, Chief Executive Officer
JJ Ishwara Connect (JJIC) Malaysia
Email : jjegaic@yahoo.com • Office No. : +603-2283 1559

The Beginning
MTCC was formed on 21 June 2002 with the aim of bringing together the group of Malaysian business people who were operating in Thailand. The Chamber’s objective is to promote and develop economic relations and cooperation between Malaysia and Thailand and also among Malaysian business people in Thailand and the surrounding region. The Malaysian Ambassador to Thailand is the patron of the MTCC.

Membership
From an initial group of 10 members, MTCC has grown over the years to 126 members comprising both ordinary and associate members.

Social Networking Activities
In keeping with its objective to promote business relations in the community, the MTCC regularly organises social functions like networking dinners, seminars and conferences, as well as golfing events. The Chamber also increased its joint-networking activities with other trade chambers like the Singapore-Thai Chamber of Commerce and the Hong Kong Trade Association. MTCC also participated as a member of the organising committee in the inaugural Asian Food Festival 2010. Dinner talks were held on topics of current relevance like “Holistic Wellness” and “The Stock Market”. The Chamber helps to facilitate visits by Malaysians from the business community or government bodies who want to know more about the Thai economy. MTCC also serves as a strategic point of contact for Malaysian businessmen who are interested to do business in Thailand or for those wanting to know more about the Thai investment environment. This is similarly true for Thai businessmen who want to know more about investment opportunities in Malaysia.

Publications
MTCC produces quarterly newsletters that are widely distributed in Thailand and Malaysia to keep members apprised of the latest government policies and economic developments. It also serves as an avenue for members to publicise their respective company profiles or to disseminate information about their companies. MTCC also produces an annual handbook/directory.

The website of MTCC was officially launched in February 2005. The contents are frequently updated to provide useful and informative news to the business community in Thailand, as well as to other interested parties worldwide. The website also offers web links exchange, near to real time announcement, an online billboard and exchange rates.

CSR Activities
MTCC is also committed to contributing and giving back to the community on behalf of its members through various CSR activities.

Malaysian-Thai Chamber of Commerce
3601, 36th Floor, Q House Lumpini Building, South Sathorn Road, Tungmahamek, Sathorn, Bangkok 1012 Thailand.
Tel : +66(0)-2677 7393 • Fax : +66(0)-2677 7394 • E-mail : admin@mtcc.or.th • Website : www.mtcc.or.th
Contact person: Ms. Kedsuda Phanthong (Administrator)

Overview
With its capital city of Dakar located on the westernmost point of Africa, Senegal is a gateway to the African continent. The land of “Teranga” (hospitality) has some of the best transportation and telecommunications infrastructure in West Africa. Dakar has become the transportation hub of the West Africa region, with numerous airlines flying eastbound towards other African countries and northbound to Northern Africa, Europe and the United States.

The Port of Dakar is the first major port-of- call from Europe and America, and is well served by major shipping lines. The port also serves as an entrepot transshipment center for landlocked nations in West Africa, enabling fairly easy access to these different markets. Today, many companies use Senegal as a regional base for their West Africa operations.

Since independence from France in 1960, Senegal has been a functioning democracy. Free and fair elections in 2000 brought H.E. President Abdoulaye Wade to power, ending 40 years of Socialist Party rule. He was re-elected in 2007.

Senegal is a country characterised by a diverse mix of cultures and ethnicities blending together peacefully, which has helped build the country’s international reputation for hospitality and stability. Senegal’s voice is both heard and respected in organisations such as the Economic Community of West African States (ECOWAS), African Union (AU) and United Nations (UN).

Economic Overview
After two years marked by the effects of the global financial crisis, the Senegalese economy began to recover in 2010 thanks to the global economic recovery and measures taken by the authorities to boost national economicactivity. Gross Domestic Product (GDP) was estimated to have grown from 2.2% in 2009 to 4.2% in 2010, and is projected to reach 4.5% in 2011. This will be largely due to the performance of the three sectors of the economy – primary, secondary and tertiary – which accounted for 14.7%, 20.4% and 64.9% respectively of the GDP in 2010.

Underscoring the priority placed by the Senegal authorities on attracting foreign investment, the Government created the Investment Promotion Agency (APIX S.A.) in 2000 and the Presidential Council on Investment in 2003. To further boost the economy and facilitate exports to the West African region and its 270-million-strong consumer market, the Government is investing heavily in large-scale infrastructure projects such as a new international airport, toll highway, special economic zone as well as the modernisation and expansion of the Port of Dakar.

Why Senegal? 
The Senegalese are generally well disposed towards foreigners, and actively seek business partners from emerging countries. France remains Senegal’s largest economic partner, with China, India, UAE and Iran counting among the country’s main trade and investment partners. Other major foreign investors include the USA, Switzerland, Germany, Japan, South Korea, China, Taiwan, India, Iran, Morocco, Dubai, Sudan and Nigeria.

The main sectors attracting foreign investment in Senegal are in chemical processing (phosphates), petroleum refining, food processing, seafood products and processing industries, information and communication technology as well as the textile and garment industries.

As Senegal begins to realise its potential, the country’s reforms in recent years have also attracted more and more investors. In fact, Senegal was Africa’s leading reformer among the top 10 reformers in doing business 2009.

Benchmarking Senegal against its competitors in West Africa, foreign investors cited the following reasons as key to their decision to invest in the country:

• Open and stable country
• Healthy and competitive economy
• Qualified human resources
• Increasingly efficient infrastructure
• Legal and fiscal incentives framework
• Privileged access to regional and international markets (ECOWAS – 270 million consumers; WAEMU – 85 million; EU – 456 million; and USA – 300 million)
• Good quality of life

The Government’s priority action plan for economic transformation (2011 – 2015) covers key sectors such as energy, road infrastructure (interior and regional linkages), agriculture and social sectors (education, health and low cost housing).

Business Opportunities
As a primary trading hub in West Africa, Senegal offers a wide range of business opportunities to Malaysian companies seeking to venture and develop their operations in the region.

• Senegal and Malaysia have signed a bilateral agreement on investment protection.
• Investment and PPP opportunities exist in power generation, real estate (low cost, middle and high end market), construction (roads, bridges), tourism resorts, agriculture and agro-industries, fish canning, telecommunications, call centres and shared services outsourcing, bus and passenger car assembly as well as the textile and garment industries.
• Trade opportunities for Malaysian companies exist in telecommunication equipment, power generation systems, construction equipment, medical equipment, wastewater treatment technology, agricultural equipment, computers and peripherals, food processing machinery and building materials.

The world economy continues to be led by developing Asia, with advanced nations lagging behind. Developed economies are slowly recovering with little price pressures. In contrast, developing Asia remains robust with strong domestic demand and rising inflationary pressures. The recent disaster in Japan has been felt by numerous countries, particularly through the manufacturing chain. With the end of the U.S. quantitative easing in June 2011, the global economy will be influenced by the European debt crisis and volatile commodity prices. Major currencies will likely consolidate against the U.S. dollar, while emerging currencies are set to appreciate further.

In Malaysia, the 1Q11 GDP growth recorded a healthy 4.6% year-on-year, with private (6.7%) and public (6.1%) consumption offsetting a larger drag from net exports (-24.2%). By sector, services (5.9%) and manufacturing (5.4%) were the main growth drivers. Economic growth momentum will probably moderate in 2Q11 on supply disruptions from the Japan disaster, pullback in commodity prices, rising cost-push inflation, and higher debt servicing burden. Rebound is expected in 2H11 due to the reconstruction of Japan and implementation of ETP projects. Hence, 2011 GDP growth will reach 5.2% year-on-year, before propelling higher to 5.5% in 2012.

Reflecting the ongoing uncertainties in the global and regional economic outlook, the in-house Consumer Sentiments Index (CSI) declined slightly to 107.9 points in 2Q11, while the Business Conditions Index (BCI) edged up marginally to 114.0 points. Retail Trade Index (RTI) and Tourism Market Index (TMI) followed the trend exhibited by BCI to 124.8 points and 125.4 points respectively. Conversely, Automotive Industry Index (AII), CEO Index, and Residential Property Index (RPI) moved lower to 120.8 points, 111.9 points, and 128.0 points respectively.

Overall CPI increased 3.3% year-on-year in May 2011 and is likely to peak at 3.8% by June 2011 due to recent hikes on electricity tariffs (average 7.12%) and gas prices (28.0%). During 2H11, inflation will probably be around 3.5% with upside risks from indirect second round effects. Consequently, MIER expects another hike in the OPR by 25bp. CPI will average 3.3% in 2012 prompting further hikes in OPR to 3.5%.

Recent foreign exchange liberalisation measures will be neutral on the performance of the Ringgit since higher direct investment abroad will be offset by inflows from more trade finance and easier borrowing rules from non-resident related companies. Thus, RM/USD is projected to average around 3.00 in 2011. Improving macroeconomic fundamentals will see an average RM/USD of 2.95 in 2012.

The Malaysian Institute of Economic Research (MIER)
Level 2, Podium, City Point, Kompleks Dayabumi,
Jalan Sultan Hishamuddin, P.O. Box 12160, 50768 Kuala Lumpur.
Tel : (603) 2272 5897 / 2272 5895     Fax : (603) 2273 0197     Website: www.mier.org.my

For more information, please contact Dr. K.K. Foong, Senior Research Fellow
Email : kkf70us@yahoo.com

‘Salam Aidil Fitri’ to all our members and readers.

In this edition, we present you with the second installment of YBhg Dato’ J. Jegathesan’s article “Attracting Foreign Investments”. Dato’ J. Jegathesan’s article is backed by many years of distinguished service with the Malaysian Industrial Development Authority (MIDA) at a time when Malaysia’s phenomenal economic growth was accelerated by Foreign Direct Investments (FDI) from many developed nations.

The recently held Langkawi International Dialogue (LID) and the concurrently held Malaysia-Africa Business Forum in June 2011 were timely and well-attended. The Forum revealed that there is considerable scope for increasing trade and investment between countries in the African continent and Malaysia. The business delegation from the Kingdom of Swaziland, led by its Prime Minister, H.E. Dr. Barnabas S. Dlamini held a business seminar in Kuala Lumpur where our members were invited to attend. The seminar revealed many interesting features and business opportunities for Malaysian traders and investors in that country. We thank His Excellency Dr. Barnabas S. Dlamini and the High Commission of the Kingdom of Swaziland in Kuala Lumpur for their close working cooperation that resulted in a fruitful seminar.

MASSA over the years have continually engaged with Africa and the association has led many delegations to Africa and hosted many high level officials and business delegations from the continent in Kuala Lumpur. In this edition, we have a country feature on Senegal. In 2004, MASSA organised a visit to Dakar, Senegal, that was led by YBhg Tan Sri Dato’ Soong Siew Hoong, one of our senior executive committee members. Senegal, since that visit, has evolved to become the primary preferred trading hub in West Africa. Its economic reforms have enabled Senegal to achieve a growth from 2.2% in 2009 to a projected 4.5% in 2011. The Embassy of the Republic of Senegal in Kuala Lumpur is at our members’ disposal to offer advice and referrals for business and investment opportunities in that country.

We are also pleased to inform members of the latest property development undertaken by Malaysian South-South Corporation Berhad in Danang, S.R. Vietnam. Phase 2 of its residential development in Fortune Park, Danang City is nearing completion ahead of schedule. The link houses are in the process of hand-over to the proud house owners, while the Link-Villa and Villa will be handed over in the third quarter of 2011.

The Secretariat has plans for an African follow-up programme in the pipeline, and details will be announced in due course. Last but not least, we welcome any business leads and feedback to better assist members in their business outreach.

Fatimah Sulaiman
Editor

Our Gross Domestic Product (GDP) in the second quarter (2Q2011) moderated to 4% compared to 4.9% in the first quarter (1Q2011), dampened by a slowdown in the manufacturing sector and a weaker external environment that has been impacted by disruptions of the supply chain following the natural disaster in Japan, political uprising in the Middle East, the European debt woes and the recent financial turmoil driven by the US credit rating downgrade. The second half growth for Malaysia is expected to be sustained by private consumption, domestic demand and the Economic Transformation Programme (ETP) projects. With this, Gross Domestic Product (GDP) growth for 2011 will likely be a modest 5%.

Going forward, the global events afflicting the aforementioned developed countries certainly will pose a risk to the rest of the world. Malaysia is a small, open economy that is heavily export-driven and thus, will not be insulated from these external risks. Signs are clear that different strategies will need to be pursued in such times of economic uncertainties. We will need to navigate these unchartered, rapidly changing and often unpredictable times with a clear and focused goal in hand.

In these circumstances, South-South business remains a viable proposition. We need to hone our production capabilities, streamline and optimise manufacturing facilities and look for synergistic benefits and develop new markets with our South-South partners. MASSA is committed to assist members in this endeavour.

We also need to engage with our Government and the Governments of the South-South countries to create a win-win environment that remains supportive of cross border business, unlock new business possibilities and to create sustainable demand for Malaysian products and services.

I take this occasion to wish all our Muslim members and readers “Selamat Hari Raya Aidil Fitri, Maaf Zahir Batin” this festive season.

TAN SRI AZMAN HASHIM
President

FOUR GLOBAL TRENDS ALIGN BLOBAL MARKET DEMAND WITH ARGENTINA’S ENDOWMENTS

In a rapidly evolving global economic scenario, Latin America is emerging as a regional force of dynamic economies with strong domestic markets. Among those economies, Argentina stands out.

Argentina’s macroeconomic predictability and sustained economic growth make the country a strategic investment destination. The country offers differential opportunities for productive investments geared towards meeting current and future domestic, regional and global market demand.

At a domestic level, Argentina has the potential to continue attracting more and better investments. The Argentine economy grew 7.1% per year over the period of 2003 to 2009 and 9.2% in 2010. According to IMF projections, GDP will grow 6% in 2011. Sound macroeconomic fundamentals – record-high accumulated international reserves, primary fiscal surplus, current account surplus, flexible and competitive exchange rate – a solvent financial system, and supportive public policies underpin new investment prospects for both domestic and foreign investors alike. In fact, investment has been a key driver for economic growth over the past few years. Gross fixed capital formation grew 22% in 2010, reaching record-high rates. Foreign direct investment (FDI) has grown since 2003, reaching an all-time high in 2008. After a brief slowdown resulting from the impact of the global economic crisis on investment worldwide, FDI flows to Argentina grew 58% in 2010.

At regional and global levels, the growing economic weight of emerging markets, in particular those constituting Argentina’s main export markets, is stimulating local production, in addition to helping anticipate a continuing trend of favourable terms of trade. Furthermore, as a member country of MERCOSUR (the common market including Argentina, Brazil, Paraguay and Uruguay), Argentina grants investors tariff-free access to a regional market of 250 million people.

Moreover, Argentina’s comparative and competitive advantages are well aligned with global structural trends, positioning the country as an attractive destination for investors across the globe. There are four global trends that illustrate the growing complementarities between Argentina’s capabilities and endowments and global market needs.

Prosperar
Undersecretariat of Investment Development
Florida 375, 8º Floor, “B” Apart,
Buenos Aires, Argentina (C1005AAG).
Tel : (54 11) 4328.9510
Email : infosuinv@mrecic.gov.ar
Website : http://www.prosperar.gov.ar/en/

For further information in Malaysia, please contact:
Embassy of Argentine Republic in Malaysia
Mr. Luis Luna (Counsellor)
Suite 16-03, Menara Keck Seng,
203, Jalan Bukit Bintang, 55100 Kuala Lumpur.
Tel : 03- 2144 1451 / 61
Fax : 03- 2144 1428
Email : lul@mrecic.gov.ar

Introduction

The Malaysia Competition Commission (MyCC) is an independent body established under the Competition Commission Act 2010 to enforce the Competition Act 2010. Its main role is to protect the competitive process for the benefit of businesses, consumers and the economy.

Tan Sri Dato’ Seri Siti Norma Yaakob was appointed as the Commission’s first chairman. She was a senior member of the Malaysian Judiciary and her last appointment before her retirement in January 2007 was that of Chief Judge of Malaya.

Commission’s Main Functions

The Competition Commission Act 2010 empowers the Commission to carry out functions such as to implement and enforce the provisions of the Competition Act 2010, issue guidelines in relation to the implementation and enforcement of the competition law, act as advocate for competition matters, carry out general studies in relation to issues connected with competition in the Malaysian economy or particular sectors of the Malaysian economy as well as inform and educate the public regarding the ways in which competition may benefit consumers and the economy of Malaysia.

Competition Act 2010

The Competition Act 2010 only came into force on 1 January 2012. The Act which aims to promote economic development and protect consumer interests applies to all business activities within and outside of Malaysia as long as the activities have an impact on competition in the domestic market. There are two prohibitions in the Act, anti-competitive practices and the abuse of dominant position. Prohibited anti-competitive practices relate to horizontal and vertical agreements between enterprises whereby such agreements have the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services. An abuse of a dominant position by an enterprise, whether individually or together with other enterprises would include among others, imposing an unfair purchase or selling price, limiting or controlling production and tying or bundling activities.

“Implication of the Competition Act 2010 to Malaysian Businesses”

Previously, Malaysia did not have a general and comprehensive competition law that applies across all economic sectors. Existing competition laws and regulations in Malaysia have been implemented only in two specific sectors, which are the communications, and multimedia sector governed by the Communications and Multimedia Act 1998 and the energy sector governed by the Energy Commission Act 2001.

In general, the main thrust of the Competition Act is to promote a competitive market environment and provide a level playing field for all players in the market, which in the process will squash anti-competitive practices such as cartels and collusions. This law will apply to all businesses; government-linked companies as well as big, small or medium-sized companies.

Implications of the Competition Act 2010 for Malaysian businesses are:

From now on, every business and company should begin educating and informing their staff to comply with the provisions of the Act. Such companies should encourage an awareness programme for all staff members and warn them against getting involved in any act that may be anti-competitive in nature.

For more details, please visit www.mycc.gov.my.