CYBERJAYA, May 21 — The Malaysian Communications and Multimedia Commission (MCMC) has released two documents, Guidelines on Mergers and Acquisitions and Guidelines on Authorisation of Conduct.
Its chairman Al-Ishsal Ishak in a statement today said these documents aimed to increase transparency and provide clarity to the industry on MCMC’s approach when assessing mergers and acquisitions of telecommunication companies, as well as authorisation of conduct which would substantially lessen competition in the communications market.
“The communications and multimedia industry is a critical component and key contributor to the country’s economy.
“Policies that ensure a competitive and forward-looking industry can significantly impact Malaysia’s economic growth,” he said.
Al-Ishsal said while mergers and acquisitions could allow companies to achieve efficiency through greater scale and scope, as well as gain access to new technologies and markets, it could also serve to reduce competition and result in market dominance.
“As the regulator of the communications and multimedia sector, it is imperative that we strike a balance between allowing companies to pursue their corporate strategies and prioritising shareholder returns, whilst maintaining competitive dynamics in the market to protect products and services available for consumers and businesses,” he said.
The documents can be downloaded from MCMC’s website at https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/Guidelineson-Merger-and-Acquisitions.pdf and https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/Guidelineson-Authorisation-of-Conduct.pdf. — Bernama