ANWAR, we welcome the announcement that the government will review and break all monopolies with a direct impact on the cost of living and the people’s livelihoods. In this spotlight are vehicle inspections, rice industry and toll payment. But experts tend to include the food and medicine sectors.

In a recent study, the Malaysia Competition Commission (MyCC) found monopolies and cartels manipulating prices. Liberalising the supply chain will diversify consumers’ options and help the government reduce prices instead of having to award subsidies.

MyCC, through the task force set up by the Domestic Trade and Cost of Living Ministry, will continue to monitor the progress and behaviour of the incumbent to guarantee seamless entry of new players. One monopoly had attempted to increase the cost of new entry by making an exclusivity agreement with downstream players.

However, breaking monopolies should be done on a case-by-case basis. If a monopolising company provides cheap, good and reliable service, do not rock the boat.

Last year, we saw a monopoly/cartel in action, where five feedmillers entered a non-competing agreement with the potential to strangle competition, but the penalties imposed by the MyCC were “chicken feed”.

Anwar, we first need to strengthen the MyCC.

In 2018, the Federation of Malaysian Consumers Associations raised the issue of excessive tolls and the system’s inefficiency. The MyCC responded that it “does not raise any competition concerns” but was a consumer issue, thus it had no jurisdiction over the matter.

I would strongly urge the MyCC to revisit its vision and mission statements and to enforce its roles as established under the Competition Commission Act 2010.

Other known monopolies include Digital Nasional Bhd on the 5G roll-out.

Granted, it involves high investment or production costs, but there should be some form of government control through various agencies. The Finas Act 1981 (amended 1984) can enforce the anti-monopoly law, which causes a company to participate in two activities only i.e. producing and distributing, or distributing and broadcasting.

It is recommended that similar law be enforced in the industry of television programme production.

Cartels do seem to exist in the medicine supply chain. A leaked document alleged six main tendering agents controlled about 90% of all medicine tender awards between 2013 and 2016, with the top three awarded with a 75.9% chunk.

These agents were said to belong to companies owned by high-ranking officials and/or politicians, and they are said to have conspired with international pharmaceutical companies. Pharmaniaga Bhd may not hold a monopoly in the business, but authorities should include it in their investigations.

The above is more linked to corruption than monopoly.

Investigations should include companies with big market shares after a merger or acquisition i.e. more than 50%, with only a handful of competitors. The overused cliché of “the strategic realignment will foster value creation for shareholders” is definitely not for the people’s livelihoods.

So much for the private sector. How about government departments and agencies? We cannot avoid this, but surely there are areas that can affect people’s livelihoods in terms of cost savings and efficiency.

Departmental expenditures and project costs should be scrutinised to save costs and a “cost-benefit analysis” culture should be instituted.

Staff should be properly trained to understand the whole process. In the last three months, I had to make several visits to the Bangi Land Office to get a name change on a land grant. 

Speaking of corruption, investigations should include government offices where “runners” are employed.

Corruption is an added cost of doing business, and without monopolies, corruption can be reduced or even eliminated, especially when there is transparency and strict and fair competition. – March 28, 2023.

* Saleh Mohammed reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.