Malaysia

KPDN strengthens competition law framework

The act aims to strengthen enforcement powers, curb anti-competitive practices and reinforce market integrity to address cost-of-living pressures and improve domestic economic resilience

Updated 2 months ago · Published on 06 Jul 2026 5:16PM

KPDN strengthens competition law framework
Dewan Rakyat passes amendments to competition act and commission act - July 6, 2026

THE Dewan Rakyat has passed significant amendments to Malaysia’s competition law framework, approving the Competition (Amendment) Bill 2026 and the Malaysia Competition Commission (Amendment) Bill 2026 in a move designed to strengthen enforcement powers and enhance market regulation.

The amendments, tabled by the Ministry of Domestic Trade and Cost of Living (KPDN), are intended to reinforce the role of the Malaysia Competition Commission (MyCC) in safeguarding fair market practices and protecting consumers while addressing structural drivers of rising living costs.

KPDN said the reforms form part of a broader legislative modernisation agenda aimed at building a more sustainable, competitive and transparent domestic economy.

The Competition (Amendment) Bill 2026 introduces a total of 34 amendments, comprising revisions to 29 existing sections and the insertion of five new provisions. Among the key changes is the strengthening of definitions relating to business associations under Section 2, aimed at preventing industry associations from being used as platforms for cartel formation or coordinated anti-competitive behaviour.

The ministry said the clarification is intended to ensure that associations operate strictly within lawful boundaries and are not misused to manipulate market outcomes or restrict fair competition.

The amendments also introduce new criminal provisions, including offences for failure to cooperate with MyCC during market studies under a new Section 11A.

The government said this measure is intended to ensure access to accurate data and improve the effectiveness and transparency of market assessments.

Another key provision, Section 58A, allows the Competition Commission to file appeals to the High Court in cases where decisions under Sections 35, 39 and 40 are overturned by the Competition Appeal Tribunal, thereby strengthening legal certainty and enforcement continuity.

In parallel, amendments to the Malaysia Competition Commission Act 2010 introduce changes across 10 sections, including nine revised provisions and one new section, to clarify and expand MyCC’s operational powers, including delegation authority for specific functions.

Its minister, Datuk Armizan Mohd Ali, said the combined reforms are expected to enhance regulatory effectiveness, improve enforcement efficiency and strengthen institutional capacity in addressing anti-competitive practices in the domestic market.

Following approval in the Dewan Rakyat, both Bills are scheduled to be tabled in the Dewan Negara between 20 July and 4 August 2026 for further consideration.

Armizan added the amendments are part of ongoing efforts to ensure a fair, resilient and well-regulated market ecosystem.

“KPDN will continue to strengthen its market reform agenda to ensure that the domestic trading ecosystem remains fair and with integrity,” he said, adding, the amendments are expected to serve as a stronger legal instrument in safeguarding consumer welfare and supporting broader economic stability. - July 6, 2026

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