Issues Related to Competition Laws

Issues Related to Competition Laws

Malaysia

In Malaysia, competition areas of particular concern are with regard to Restrictive Business Practices such as collusive tendering, market allocation or quota refusal to supply, cartel price fixing, predatory pricing etc., which are strongly suspected, but which the existing laws cannot completely prohibit or control. Other areas of particular concern are with regard to issues of market power arising from corporate mergers, takeovers and restructuring activities of enterprises.

List of Malaysian Laws Regulating Businesses/

Providing Consumer Protection

Legislation Propose
Enforcement Agency

1. Price Control Act,
    1946 An Act to provide for the control of prices.
To require price tagging and labelling of goods.
Ministry of Domestic Trade and Consumer Affairs

2. Control of Supplies
    Act, 1961 An Act to Provide for the control and rationing of supplies of controlled articles.
To prohibit such acts like hoarding or refusal to sell controlled goods.
Ministry of Domestic Trade and Consumer Affairs

3. Control of Paddy
    and Rice Act,
    1974 An Act to control (store and manage) the supply of paddy and rice domestically and ensure a stable price for both farmers and consumers.
To ensure adequate supply of rice in any situation, especially during national emergencies.
Ministry of Agriculture

4. The Rent Control
    Act, 1966
   The Rent Repeal
   Act, 1997
An Act relating to the control of rent within the States of Malaysia.
An act to repeal the Rent Control Act, 1966 and to provide for transitional provisions for the period 1.9.97 - 31.12.99.
Ministry of Housing and Local Government

5. The Road
    Transport Act,
    1997 An Act to regulate public transport services. Military of Transport

6. The Standard act
    of Malaysia, 1995 An Act to determine standards and the conduct of research on products in the market.
The Act is also intended to increase society's standards of living especially in areas of safety and welfare.
Ministry of Science, Technology and the Environment.

7. The Food Act,
    1983 An act to regulate the sale of foodstuff so as not to endanger consumers, besides ensuring that food content is not harmful. Ministry of Health

8. The Prevention
    and and Control
    of Diseases Act,
    1988 An Act related to the prevention and control of communicable diseases.
Empowers the Assistant Health Officer to enter Premises for the purpose of carrying out checks and examinations.
Ministry of Health

9. The Pharmaceuticals
    (Advertisement and
    Sales) Act, 1956 An Act to control and restrict the advertisement of pharmaceutical products which may influence or entice the use of the product for purpose of treating contain dangerous conditions.
All advertisements for pharmaceutical products also need to receive prior approval from the Ministry of Health.
Ministry of Health

10. The Factories and
      Machineries Act,
      1967 An Act pertaining to the regulation of factories and machineries by way of registration and examination of such machinery to ensure the maintenance of health and safety standards, including the welfare of all parties involved. Ministry of Human Resources

11. The Pesticides Act,
      1974 An Act to regulate the import, manufacture, sale and storage of pesticides by way of registration requirements and permits. Ministry of Agriculture

12. The Animals
      ordinance, 1953 An Act to regulate the import and export of animals and birds to prevent the spreading of diseases. Ministry of Agriculture

13. The Sale of Drugs
      Act, 1954 An Act to regulate and formulate regulations vis-a-vis the import and export, manufacture, sale and use of opium and other dangerous drugs. Ministry of Health

14. The Electricity Act,
      1949 An Act which enables the National Electricity Board to regulate the following:
- determine billing rates; and

- the licencing of assembly and construction activities to guarantee quality of work and ensure consumer safety.
Ministry of Energy, Telecommunications and post

15. The poisons Act,
      1952 An Act to regulate the import, manufacture, storage, transport, sale and use of all types of poisons. Ministry of Health

16. The Environment
      Quality act, 1974 An Act responsible for the coordinating of all activities pertaining to the disposal of substances into the environment, so as to control pollution levels and protect and improve the quality of the environment. Ministry of Science Technology and the Environment

17. The Trade
      Description Act,
      1972 An Act to relating to merchandise marks Prohibiting misdescription of goods, false or misleading indication as to the price of goods and false or misleading statements as to any services, accommodation or facilities provided in the course of a trade or facilities and conferring power to require information or instructions relating to goods to be marked on or to accompany the goods or to be included in advertisements and for related purposes. Ministry of Domestic Trade and Consumer Affairs

18. The Pharmaciats
      Registration Act,
      1951 An act to ensure that the Pharmacists Board registers its fellow pharmacists prior to their being allowed to carry out activities.
The Act also regulaes unqualified pharmacists.
Ministry of Health

19. The Fisheries
      Development
      Board Act, 1971 An Act intended to develop fisheries into an efficient and effective industry.
The Act provides for coordinated credit facilities for fishermen.

The Act further regulates unfair or improper business or marketing activities in the fisheries industry.
Ministry of Agriculture

20. The Hire-Purchase
      Act, 1967 An Act to regulate the form and contents of hire-purchases agreements and the rights and duties of parties to such agreements. Ministry of Domestic Trade and Consumer Affairs

21. The Insurance Act,
      1963 An Act which regulates the running and activities of insurance companies by way of registration. Ministry of Finance

22. The Moneylenders
      Act, 1951 An Act to regulate the activities of individuals or companies engaging in money loans, for which a license is mandatorily required. Ministry of Finance

23. The Pawn-Brokers
      Act, 1972 An Act requiring any person engaging in pawn-broking activities to mandatorily obtain a licence prior to functioning as a pawn-broker. Ministry of Housing and Local Government

24. The Sale of Act,
      1957 Goods An Act relating to the sale of goods Between parties engaging in sales and purchase of goods, including the protection of consumers by ensuring the merchantability and guarantability of goods. The Civil laws of Malaysia

25. The Contracts Act,
      1950 An Act which outlines the duties and responsibilities of all parties engaging in any kind of contract or agreement. The Civil Laws of Malaysia

26. The Weights and
      Measures Act,
      1972 An Act to establish units of measurement and standards of mass and measure based on the International System of Units to regulate weights and measures and instruments for weighing and measuring for use for trade and to make provisions for matters connected therewith and ancillary thereto. Ministry of Domestic Trade and Consumer Affairs

27. The Housing
      Developers (Con-
      trol and Licensing )
      Act, 1966 An Act which regulates and licenses all housing development activities in order to ensure that no deviations occur within the industry. Ministry of Housing and and Local Government Ą@

28. The Finance
      ( Banks and
      Financial Institu-
      tions ) Act, 1986 An Act Which regulates lending activities By banks, financial institutions and companies by way of licence issuance and control. The Central Bank of Malaysia

29. The Direct Sales
      Act 1993 An Act to provide for the licensing of persons carrying on direct sales business, for the regulation of direct selling and for other matters connected therewith in order to:
1. ensure that the industries develop in an ethical manner.

2. prohibit pyramid selling scheme.

3. ensure consumers are protected.
Ministry of Domestic Trade and Consumer Affairs.

30. The Trade Marks
      Act 1976 Acts to safefuard the interests of the respective owners of intellectual property. Ministry of Domestic Trade and Consumer Affairs.

31. The Patents Act
      1983

32. The copyright Act
      1987 An Act to accord adequate protection for copyright owners in works like book, music, film, etc; taking into account public interest. The copyright law provided several exclusive rights to owners, e.g. the right in reproduction, performance, distribution, etc. The law also provides several exemptions where permission from the copyright owner. Ministry of Domestic Trade and Consumer Affairs.

33. The Industrial
      Design Act 1996 An Act to give opportunity for the registration system of industrial design. Ministry of Domestic Trade and Consumer Affairs.

34. The Companies
      Act 1965 An Act relating to formation of companies and the regulation of their affairs. Ministry of Domestic Trade and Consumer Affairs

35. The Kootu Fund
      (Prohibition) Act
      1971 An Act to put a stop to all undertakings which promote or are designed to promote kootu funds. Ministry of Domestic Trade and Consumer Affairs.

36. The Securities
      Industry Act 1983 An Act to make provisions with respect to stock exchange, stock brokers and other persons dealing in securities, and for certain offenses relating to trading in securities, and for other purposes connected therewith. Securities Commission

37. The Registration of
      Businesses Act
      1956 An Act to provide for the registration of businesses. Ministry of Domestic Trade and Consumer Affair

38. The Customs Act
      1967 An Act relating to customs. Customs and Excise Department

Legislation	Propose	Enforcement Agency
1. Price Control Act, 1946	An Act to provide for the control of prices. To require price tagging and labelling of goods.	Ministry of Domestic Trade and Consumer Affairs
2. Control of Supplies Act, 1961	An Act to Provide for the control and rationing of supplies of controlled articles. To prohibit such acts like hoarding or refusal to sell controlled goods.	Ministry of Domestic Trade and Consumer Affairs
3. Control of Paddy and Rice Act, 1974	An Act to control (store and manage) the supply of paddy and rice domestically and ensure a stable price for both farmers and consumers. To ensure adequate supply of rice in any situation, especially during national emergencies.	Ministry of Agriculture
4. The Rent Control Act, 1966 The Rent Repeal Act, 1997	An Act relating to the control of rent within the States of Malaysia. An act to repeal the Rent Control Act, 1966 and to provide for transitional provisions for the period 1.9.97 - 31.12.99.	Ministry of Housing and Local Government
5. The Road Transport Act, 1997	An Act to regulate public transport services.	Military of Transport
6. The Standard act of Malaysia, 1995	An Act to determine standards and the conduct of research on products in the market. The Act is also intended to increase society's standards of living especially in areas of safety and welfare.	Ministry of Science, Technology and the Environment.
7. The Food Act, 1983	An act to regulate the sale of foodstuff so as not to endanger consumers, besides ensuring that food content is not harmful.	Ministry of Health
8. The Prevention and and Control of Diseases Act, 1988	An Act related to the prevention and control of communicable diseases. Empowers the Assistant Health Officer to enter Premises for the purpose of carrying out checks and examinations.	Ministry of Health
9. The Pharmaceuticals (Advertisement and Sales) Act, 1956	An Act to control and restrict the advertisement of pharmaceutical products which may influence or entice the use of the product for purpose of treating contain dangerous conditions. All advertisements for pharmaceutical products also need to receive prior approval from the Ministry of Health.	Ministry of Health
10. The Factories and Machineries Act, 1967	An Act pertaining to the regulation of factories and machineries by way of registration and examination of such machinery to ensure the maintenance of health and safety standards, including the welfare of all parties involved.	Ministry of Human Resources
11. The Pesticides Act, 1974	An Act to regulate the import, manufacture, sale and storage of pesticides by way of registration requirements and permits.	Ministry of Agriculture
12. The Animals ordinance, 1953	An Act to regulate the import and export of animals and birds to prevent the spreading of diseases.	Ministry of Agriculture
13. The Sale of Drugs Act, 1954	An Act to regulate and formulate regulations vis-a-vis the import and export, manufacture, sale and use of opium and other dangerous drugs.	Ministry of Health
14. The Electricity Act, 1949	An Act which enables the National Electricity Board to regulate the following: - determine billing rates; and - the licencing of assembly and construction activities to guarantee quality of work and ensure consumer safety.	Ministry of Energy, Telecommunications and post
15. The poisons Act, 1952	An Act to regulate the import, manufacture, storage, transport, sale and use of all types of poisons.	Ministry of Health
16. The Environment Quality act, 1974	An Act responsible for the coordinating of all activities pertaining to the disposal of substances into the environment, so as to control pollution levels and protect and improve the quality of the environment.	Ministry of Science Technology and the Environment
17. The Trade Description Act, 1972	An Act to relating to merchandise marks Prohibiting misdescription of goods, false or misleading indication as to the price of goods and false or misleading statements as to any services, accommodation or facilities provided in the course of a trade or facilities and conferring power to require information or instructions relating to goods to be marked on or to accompany the goods or to be included in advertisements and for related purposes.	Ministry of Domestic Trade and Consumer Affairs
18. The Pharmaciats Registration Act, 1951	An act to ensure that the Pharmacists Board registers its fellow pharmacists prior to their being allowed to carry out activities. The Act also regulaes unqualified pharmacists.	Ministry of Health
19. The Fisheries Development Board Act, 1971	An Act intended to develop fisheries into an efficient and effective industry. The Act provides for coordinated credit facilities for fishermen. The Act further regulates unfair or improper business or marketing activities in the fisheries industry.	Ministry of Agriculture
20. The Hire-Purchase Act, 1967	An Act to regulate the form and contents of hire-purchases agreements and the rights and duties of parties to such agreements.	Ministry of Domestic Trade and Consumer Affairs
21. The Insurance Act, 1963	An Act which regulates the running and activities of insurance companies by way of registration.	Ministry of Finance
22. The Moneylenders Act, 1951	An Act to regulate the activities of individuals or companies engaging in money loans, for which a license is mandatorily required.	Ministry of Finance
23. The Pawn-Brokers Act, 1972	An Act requiring any person engaging in pawn-broking activities to mandatorily obtain a licence prior to functioning as a pawn-broker.	Ministry of Housing and Local Government
24. The Sale of Act, 1957	Goods An Act relating to the sale of goods Between parties engaging in sales and purchase of goods, including the protection of consumers by ensuring the merchantability and guarantability of goods.	The Civil laws of Malaysia
25. The Contracts Act, 1950	An Act which outlines the duties and responsibilities of all parties engaging in any kind of contract or agreement.	The Civil Laws of Malaysia
26. The Weights and Measures Act, 1972	An Act to establish units of measurement and standards of mass and measure based on the International System of Units to regulate weights and measures and instruments for weighing and measuring for use for trade and to make provisions for matters connected therewith and ancillary thereto.	Ministry of Domestic Trade and Consumer Affairs
27. The Housing Developers (Con- trol and Licensing ) Act, 1966	An Act which regulates and licenses all housing development activities in order to ensure that no deviations occur within the industry.	Ministry of Housing and and Local Government Ą@
28. The Finance ( Banks and Financial Institu- tions ) Act, 1986	An Act Which regulates lending activities By banks, financial institutions and companies by way of licence issuance and control.	The Central Bank of Malaysia
29. The Direct Sales Act 1993	An Act to provide for the licensing of persons carrying on direct sales business, for the regulation of direct selling and for other matters connected therewith in order to: 1. ensure that the industries develop in an ethical manner. 2. prohibit pyramid selling scheme. 3. ensure consumers are protected.	Ministry of Domestic Trade and Consumer Affairs.
30. The Trade Marks Act 1976	Acts to safefuard the interests of the respective owners of intellectual property.	Ministry of Domestic Trade and Consumer Affairs.
31. The Patents Act 1983		Ministry of Domestic Trade and Consumer Affairs.
32. The copyright Act 1987	An Act to accord adequate protection for copyright owners in works like book, music, film, etc; taking into account public interest. The copyright law provided several exclusive rights to owners, e.g. the right in reproduction, performance, distribution, etc. The law also provides several exemptions where permission from the copyright owner.	Ministry of Domestic Trade and Consumer Affairs.
33. The Industrial Design Act 1996	An Act to give opportunity for the registration system of industrial design.	Ministry of Domestic Trade and Consumer Affairs.
34. The Companies Act 1965	An Act relating to formation of companies and the regulation of their affairs.	Ministry of Domestic Trade and Consumer Affairs
35. The Kootu Fund (Prohibition) Act 1971	An Act to put a stop to all undertakings which promote or are designed to promote kootu funds.	Ministry of Domestic Trade and Consumer Affairs.
36. The Securities Industry Act 1983	An Act to make provisions with respect to stock exchange, stock brokers and other persons dealing in securities, and for certain offenses relating to trading in securities, and for other purposes connected therewith.	Securities Commission
37. The Registration of Businesses Act 1956	An Act to provide for the registration of businesses.	Ministry of Domestic Trade and Consumer Affair
38. The Customs Act 1967	An Act relating to customs.	Customs and Excise Department