THE Malaysia Competition Commission (MyCC) has found concrete evidence and data on the possible anti-competitive practices within the realm of the port logistics ecosystem and motor vehicles warranty industry.
The discovery was published in its seventh market review entitled Market Review under the Competition Act 2010 for Selected Transportation Sectors in Malaysia which was earlier launched by Domestic Trade and Consumers Affairs Minister Datuk Seri Alexander Nanta Linggi.
In total, the market review successfully uncovered a 15 issues within the port logistics ecosystem and four issues within the motor vehicles warranty industry which range from competition issues to market-driven and regulatory issues in both transportation sectors.
The MyCC has come up with more than 30 recommendations on how to improve and rectify those issues given the urgency to tackle them.
Among the notable recommendation for the port logistics ecosystem include:
- For MyCC to invoke its enforcement power to determine whether there are cartels formed concerning the landside charges, shipping liner charges, depot gate charges, and fuel adjustment factor;
- Policy shift in concession agreement for port operators; and
- Rectifying the regulatory and market-driven issues in relation to custom procedures, regulatory framework, standardisation and the licensing of off-dock and on-dock players, and empowering MyCC with merger and acquisitions (M&A) control.
For the motor vehicles warranty market, MyCC has recommended the following improvements:
- MyCC to invoke its enforcement powers to determine whether the dealings by car manufacturers in the repair industry raises competition concerns; and
- Introduction of the Lemon Law and other improvements on the warranty processes in order to protect the interests of vehicle owners.
“The findings of this report have distinctly established that clear policies and regulations that are pro-competitive as well as conducive business environment would be essential in order to provide good value services to the consumers,” commented MyCC’s CEO Iskandar Ismail.
“Enhanced competition will also be translated to productivity growth, business dynamism and innovation, all of which, will be crucial in restoring the economy growth after the pandemic.”
On another note, MyCC alongside the Organisation for Economic Co-operation and Development (OECD) have launched the OECD Competition Assessment Reviews: Logistics Sector in Malaysia and the OECD Competitive Neutrality Reviews: Small Package Delivery Services in Malaysia reports.
These two reports detailed the assessment of rules and regulations in the logistics sector and provides insights on the analysis of the role and impact of state-owned enterprises on competition in small-package delivery services, which are crucial in supporting the growth in e-commerce.
Both the market review and both OECD Reports are available at www.mycc.gov.my. – Oct 5, 2021
