1. The Malaysia Competition Commission (MyCC) has re-emphasised that bid-rigging will be a priority area for enforcement in 2013. The Chief Executive Officer (CEO) of MyCC has labelled “bidrigging [as] one of the most serious breaches of competition law”.
  2. Section 4(2)(d) of Malaysia’s Competition Act 2010 classifies bid-rigging as a prohibited horizontal agreement which can attract a maximum fine of up to 10% of the worldwide turnover of the entities in breach.
  3. Examples of bid-rigging cited by MyCC’s CEO include:
    • Cover Pricing – a situation where Bidder A discloses its proposed bid price so that Bidder B can price higher to ensure that Bidder A wins the contract.
    • Bid Suppression – a situation where Bidder A agrees not to bid, withdraws its bid, or intentionally submits an invalid bid so that Bidder B can win the contract.
    • Bid Rotation – a situation where, in a series of tenders, Bidder A and Bidder B take turns to submit the lowest priced bid to win the contract for each tender.
  4. MyCC’s CEO noted that the risk of bid-rigging tended to be higher in relation to high value government contracts, especially in industries where there are only a few suppliers, where government procurement occurs on a regular basis and where there is little innovation in the products.
  5. As part of its efforts to combat bid-rigging, MyCC is in the process of translating and making available to the public a set of guidelines developed by the Organisation for Economic Cooperation and Development for dealing with bid-rigging in the public sector in Bahasa Malaysia. It is also conducting advocacy workshops for government officials to help them understand and detect bidrigging practices.
  6. MyCC is also collaborating with other government agencies such as the Ministry of Finance, the National Audit Department and the Malaysia Anti-Corruption Commission to increase public awareness of the prohibition against bid-rigging.
  7. MyCC’s editorial can be accessed at: http://www.thestar.com.my/Business/BusinessNews/2013/07/22/Zero-tolerance-for-bid-rigging.aspx