Anti-competitive practices must be handled to boost country’s economy
PUTRAJAYA: Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail said anti-competitive practices such as cartels and monopolies must be dealt to ensure a sustainable growth of the country’s economy.
Dr Wan Azizah who is also the National Cost of Living Action Council (Naccol) chairman, said such practices contributed to the distortion of the market that was supposed to compete in a healthy and competitive manner.
She said one of the examples of such business practices was when those who monopolize the market had collectively determined prices that were way much higher than manufacturing cost to reap maximum profit.
Speaking at the Fair Competition and Cost of Living Symposium here today, Dr Wan Azizah said a fair competition would benefit small businesses and the people.
“Indirectly, a fair competition will protect the rakyat as it will ensure high quality products and services being offered at affordable prices with plenty of choices,” she added.
A fair competition would also help entrepreneurs to be more creative, efficient and viable, thus driving the growth of the nation’s economy, she added.
Dr Wan Azizah said anticompetitive practices could also lead to other enterprises folded up their operations due to inability to compete, and eventually forced out from the markets.
“Consumers will lose if they have less options because not only they have to pay higher prices but the products could also be lacking in terms of quality,” she added.
The economy could not expand as new enterprises could not penetrate the market while existing businesses lack of initiatives to become more innovative and efficient, she said.
Dr Wan Azizah said the enforcement of the Competition Act 2010 was important towards the establishment of a competitive and healthy market by protecting the competition process in the interest of consumers, businesses and economy.
The enforcement of the act would also help in fostering efficiency, innovation and entrepreneurship to produce high quality products or services at affordable prices, said Dr Wan Azizah.
On top of that, she said a free and competitive market would be able to attract more industry players into the market, in line with the government’s agenda to make Malaysia an attractive destination for investment.