KUALA LUMPUR, 29 SEPTEMBER 2026 - The Malaysia Competition Commission (MyCC), an agency under the Ministry of Domestic Trade and Cost of Living (KPDN), has issued an Infringement Decision against six (6) enterprises for their involvement in a bid rigging cartel concerning a food supply tender issued in 2022 by the Ministry of Home Affairs (KDN). The six (6) enterprises are Bawah Bayu Trading PLT, Borneo Kreatif Enterprise PLT, Fatijaya Corporation, Man Prospek Niaga, Mediha Trading and Teras Maju Enterprise. The tender, namely Pembekalan Makanan Mentah, Basah dan Kering kepada Pusat Pemulihan Penagihan Narkotik Papar, Agensi Antidadah Kebangsaan (AADK) Negeri Sabah bagi tempoh 3 tahun, was valued at RM5,714,520.00.
MyCC commenced its investigation following information received from relevant parties concerning the conduct of bidders in relation to the tender. Throughout the investigation period, MyCC executed a search warrant at the premises of an associated entity, issued several notices requesting documents and recorded statements from key individuals.
Through MyCC’s investigations, it was found that the enterprises had engaged in a bid rigging cartel through the exchange of information and facilitation of tender. MyCC finds that such agreement has the object of significantly preventing, restricting or distorting competition in the tender for provision of raw, fresh and dry food.
Following the completion of its investigation, MyCC issued a Proposed Decision to the six (6) enterprises on 16 June 2026. Subsequently, the enterprises submitted their written representation to MyCC. On 8 September 2026, all the six (6) enterprises intimated its decision to admit liability to the findings of the Proposed Decision and readiness to pay the financial penalty stipulated in the same decision.
Taking into account the facts, evidence, admissions of the parties and relevant aggravating and mitigating factors, MyCC issued a Finding of Infringement pursuant to Section 40 of the Competition Act 2010 [Act 712] against all enterprises for infringing Section 4(2)(d) of Act 712. In its decision, MyCC imposed a financial penalty of RM1,177,664.64 cumulatively against the six (6) enterprises.
“MyCC welcomes the decision by the investigated enterprises to admit liability and their willingness to resolve the case expeditiously. Not only does this demonstrate remorse on their part but also saving MyCC’s time and resources,” said Datuk Haji Iskandar Ismail, Chief Executive Officer of MyCC.
“However, MyCC would like to reiterate that bid rigging is a serious form of infringement under the Act. It undermines the core nature of any tender as it significantly impairs the integrity of the procurement process. Businesses must compete independently and on their own merits to enable the government to deliver its intended service to the public. MyCC will continue to take firm enforcement action against cartels, without fear or favour, to safeguard competition process in private and public tenders.”