January 2, 2024

Malaysian poultry companies to challenge price-fixing penalty

Malayan Flour Mills Bhd and its joint venture partner, Dindings Poultry Development Centre Sdn Bhd, are gearing up to contest the Malaysia Competition Commission's (MyCC) decision to impose a penalty of MYR 70.02 million (US$15.2 million) for an alleged price-fixing infringement, Malay Mail reported.

The companies, in consultation with their external legal counsel, expressed their disagreement with the MyCC's finding of infringement, deeming it without merit.

In a filing with Bursa Malaysia today, both entities stated their intent to take necessary and appropriate action, including appealing the decision and applying for a stay of the ruling in the interim.

On December 22, MyCC levied a penalty of nearly MYR 415.5 million (US$90.3 million) against five Malaysian poultry feed manufacturers, citing a violation of Section 4 of the Competition Act 2010 (Act 712).

The accused companies, namely Leong Hup Feedmill (M) Sdn Bhd, FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, and PK Agro-Industrial Products (M) Sdn Bhd, were accused of forming a price-fixing cartel for poultry feed.

MyCC's investigation revealed evidence of identical increments in poultry feed prices among these parties from January 2020 to June 2022. Moreover, the commission found that the five enterprises had strategically implemented a calculated approach, creating the illusion of rising poultry feed costs attributed to hikes in raw material costs.

-      Malay Mail