[Exclusive] No More Rigged Deals: MyCC’s New Unit Takes On Bid-Rigging Cartels

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The Malaysia Competition Commission (MyCC) is stepping up against bid riggers with a new dedicated unit will focused solely on bid-rigging

Its chief executive officer, Datuk Iskandar Ismail, told SAYS that the new unit has received government approval and additional funding. 

The commission is currently structuring and recruiting for the team, which is expected to be fully operational by the second half of the year.

Even before the new unit, Iskandar said the commission already devotes about 90% of its investigating manpower to bid-rigging, as most of its cases involve this practice.

Some current officers, he added, will soon be transferred to the new unit.

"So soon we will have two teams: one focusing solely on bid-rigging, and the other on cases such as price-fixing, abuse of dominant position, and monopoly," he said, noting that the commission currently has about 30 enforcers.

Iskandar said bid-rigging has always been given priority because it strains government resources and aligns with the prime minister's push to close existing loopholes.

"There are many ways for these cartels to siphon money from the government — one through corruption, and the other through bid-rigging," he said.

The commission is focusing on three types of cartels: bid-rigging, cartels in the food and agricultural industries, and essential services.

"These industries, especially essential services such as childcare and travel and logistics services, directly impact the cost of living," he said.

Believing prevention is better than cure, the commission is also working with ministries and agencies to help detect bid riggers early.

"We have letters of understanding with the Finance, Science, Technology and Innovation, International Trade and Industry, Health, Sports and the Prime Minister's Department (Federal Territories) ministries. 

"So if they suspect bid-rigging in any procurement process, they can refer the matter to us. 

"We will then assess the situation and provide professional feedback on the procurement process," he said.

When irregularities linked to cartels are flagged, the commission may investigate, but typically the Approval Board or the Procurement Committee — established for every government procurement project — would deliberate based on MyCC's assessment.

"We highlight all red flags or factors they should consider when assessing a bidder, but it is up to their judgement. 

"We don't meddle in their decision. 

"So some projects may be re-tendered because there are too many red flags, or they may remove flagged bidders and focus on the clean ones," he said.

Iskandar said the commission also works to prevent cartels in government procurement through guidance to the Finance Ministry on amending circular PK 1.6.

The PK 1.6 circular, "Integrity in Government Procurement", took effect on 1 June 2022. 

It aims to strengthen integrity and fairness in government procurement by requiring both government agencies and bidders to adhere to key ethical and legal standards, including the Competition Act 2010 and anti‑corruption laws.

"Previously, bidders only had to declare that they would not engage in corruption and would follow procurement rules. 

"Now, they must also declare they will not participate in bid-rigging. Violations can be investigated, and contracts can be cancelled," he said.