KUALA LUMPUR, Sept 25 — Deputy Prime Minister Tan Sri Muhyiddin Yassin has called on companies, including SMEs, to put in place an effective compliance of competition law that will result in ethical standard of business conduct.
He said breaches of the Competition Law 2010, which came into force on January 1, 2012 have severe consequences not only financially but also in terms of reputation to their corporation.
There are also remedies for private rights of action which means recovery for damages are available for private individuals who may want to seek redress for infringements which have affected them, he said.
“In this regard, compliance must take precedence over anything else,” he said in his keynote address at the 1st MyCC Competition Law Conference organized by the Malaysia Competition Commission.
Muhyiddin (picture) said businesses may see it as an interference in their activities and consumers are usually ignorant of its existence, while the judiciary see it as just another law.
“The SMEs in particular are of the view that the Act is not quite relevant to their daily operations and that by virtue of their size they should be excluded from the application of the Act,” Muhyiddin said.
He said compliance to this law was more than legal requirement as it was the core value of integrity and responsibility as well as the way corporations conduct their business.
Penalties in the competition regime in the country can amount to a maximum of 10 per cent of worldwide turnover.
Earlier, Muhyiddin said the introduction of the law was one such initiative put in place to spur the economy to better performance and ensure a proper functioning market.
It is also an important strand of competition policy allowing for action against anti-competitive practices such as cartels and the misuse of market power that may cause market failures.
“Every business and individual has a duty to act lawfully. Compliance is important for all businesses, regardless of their size,” he added. — Bernama
