Malaysia Competition Law: MyCC’s Enforcement Overhaul

Introduction

The Competition (Amendment) Bill 2026 (“CA Bill“) and the Competition Commission (Amendment) Bill 2026 (collectively, “Bills“), which amend the Competition Act 2010 (“CA 2010“) and the Competition Commission Act 2010 (“CCA 2010“), respectively, were tabled before Parliament on 23 June 2026. The Bills were passed by the Dewan Rakyat on 6 July 2026, with both scheduled to be tabled in the Dewan Negara during its sitting from 20 July to 4 August 2026. Together, these Bills represent the most significant reform of Malaysia’s competition law framework since its inception, substantially expanding the CA 2010’s jurisdictional reach, strengthening the Malaysia Competition Commission’s (“MyCC“) enforcement toolkit, and introducing new mechanisms including a settlement procedure, a right of appeal to the High Court and whistleblower protections.

Whilst the Bills must still pass the Dewan Negara, businesses operating in or connected to the Malaysian market should begin preparing now.

This Update summarises the principal changes and their practical implications.

Expanded Scope and Extraterritorial Application

The amendments broaden the CA 2010’s application from “commercial activity” to “any commercial or economic activity”, bringing within its scope activities that are economic in nature but may not previously have been considered “commercial”, such as certain cooperative or not-for-profit arrangements affecting market competition. Correspondingly, the definition of “enterprise” is amended from “any entity carrying on commercial activities” to “any person carrying on any commercial or economic activity”, widening the range of market participants that may be subject to the prohibitions.

The CA 2010’s extraterritorial reach is also clarified. The amendments confirm that the CA 2010 applies to any commercial or economic activity having an effect on competition in Malaysia, regardless of where the enterprise is located or where the agreement was entered into. Foreign enterprises with supply, distribution or licensing arrangements affecting the Malaysian market should take note.

The First Schedule exemptions under the CA 20120 are also updated: the Gas Supply Act 1993 and Postal Services Act 2012 are newly added, while the Malaysian Aviation Commission Act 2015 is replaced with the Civil Aviation Authority of Malaysia Act 2017 (“CAAM Act“), reflecting the dissolution of the Malaysian Aviation Commission (MAVCOM) and the transfer of its functions to the Civil Aviation Authority of Malaysia (CAAM).

All Agreements Now in Scope – Removal of the Horizontal/Vertical Distinction

The definitions of “horizontal agreement” and “vertical agreement” are proposed to be deleted from section 4(1) of the CA 2010, with the amendments now prohibiting “any agreement” that has the object or effect of significantly preventing, restricting or distorting competition – aligning Malaysia with the European Union (EU)-style competition law framing. This also gives MyCC clear authority to investigate industry associations involved in cartel arrangements.

Critically, the section 4(2) deeming provision which deems agreements to fix prices, share markets, limit production or engage in bid rigging to have a significant anti-competitive object, is proposed to apply to all agreements, not just horizontal ones. On its face, this means that vertical agreements with these objects would also be deemed to infringe the prohibition. If this interpretation is correct, it would represent a significant expansion of the per se prohibition and mark a notable departure from the current position. Businesses with distribution, supply or reseller arrangements should pay close attention to how MyCC interprets and applies this provision in practice. 

Enhanced Investigatory Powers and Document Preservation Obligations

The amendments significantly strengthen MyCC’s information-gathering powers. According to news reports, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali noted when tabling the CA Bill that cartels are now using algorithms, disappearing messages, and digital erasure technology to eliminate evidence, necessitating enhanced investigatory tools. Key changes include:

1. Compulsory disclosure: MyCC may direct any person to provide information, produce documents, make copies, or give oral evidence. Government entities must also comply.

2. Market review powers: MyCC may compel information for market reviews, with criminal sanctions for non-compliance or misleading information.

3. Criminalisation of attempts: It is now an offence to attempt to destroy, conceal or alter records, with direct implications for legal hold policies and document retention.

Settlement Mechanism

For the first time, MyCC will have a statutory settlement route. After issuing a proposed decision, MyCC may offer settlement to an enterprise under investigation. The enterprise must admit liability, following which MyCC issues an infringement decision with a penalty reduction of up to 40%. This reduction is “in addition to” any leniency reduction, meaning an enterprise could benefit from both. However, businesses must weigh the benefit against the risk of follow-on private actions, given the required admission of liability.

 Undertakings

Unlike settlement, undertakings may be accepted before a proposed decision is issued. The amendments expressly permit MyCC to impose conditions including payment of a fine. If accepted, MyCC closes the investigation without an infringement finding but may recommence if the enterprise fails to comply or provided false information.

Refined Leniency Regime

The leniency regime is refined to provide up to 100% penalty reduction where an enterprise admits cartel involvement and provides cooperation that significantly assists investigations. Differential reductions will depend on whether the applicant coerced another enterprise into the arrangement.

Proposed New Right of Appeal to the High Court

In a major change, Competition Appeal Tribunal (“CAT“) decisions will no longer be “final”. The amendments grant any person, including MyCC, a right of appeal to the High Court within 90 days, confined to questions of law and quantum of penalty. This introduces judicial oversight of CAT decisions for the first time, aligning Malaysia with international best practices. This statutory right of appeal solves a historic procedural impasse highlighted by the landmark Malaysia Airlines (MAS)-AirAsia case. In that saga, the Court of Appeal ruled that MyCC lacked the legal standing (locus standi) to challenge CAT’s decisions via judicial review, effectively leaving MyCC powerless if overturned by its own appellate tribunal.

Strengthened Penalty Enforcement

The 10% worldwide turnover penalty cap is retained, but enterprises that fail to pay within the specified period will now be liable for late payment charges. MyCC may bring High Court proceedings to enforce payment of penalties, late charges and interest at the normal judgment rate.

Whistleblower and Informer Protections

The amendments also introduce statutory protections for informers, filling a gap left by the Whistleblower Protection Act 2010, which does not cover competition matters. No witness may disclose an informer’s identity. Protection against reprisals is expanded to include “economic” disadvantage, termination of contracts, withholding of payments, diversion of business and unreasonable litigation. MyCC may also grant cash rewards to informers.

Institutional Strengthening: Malaysia Competition Commission

The CCA 2010 is proposed to be amended to formally name the regulator the “Malaysia Competition Commission”. Beyond this, key institutional reforms include (i) express statutory basis for MyCC to impose financial penalties and late payment charges; (ii) delegation of functions to the Chairman, committees, officers or employees; and (iii) an enhanced advisory role covering policies, procedures and programmes relating to competition.

Notable Absence: No Merger Control Regime

Despite this extensive overhaul, neither Bill introduces a general merger control regime. According to news reports, Minister Armizan indicated that further study is needed, with merger control expected within the 13^th Malaysia Plan period (2026 – 2030). Malaysia remains one of the few Association of Southeast Asian Nations (“ASEAN“) jurisdictions without economy-wide mandatory merger filing. Sector-specific merger control currently exists only under the Communications and Multimedia Act 1998 and the CAAM Act.

While prioritising enforcement capacity before merger control is institutionally pragmatic, the gap remains significant – anti-competitive mergers are difficult to address ex post, and potentially harmful transactions outside the communications and aviation sectors may proceed without scrutiny. Businesses should monitor developments closely.

Conclusion

These amendments represent a watershed moment for Malaysian competition law, the most significant overhaul since the regime’s inception. A wider net (i.e. broader scope, expanded “enterprise” definition, removal of the horizontal/vertical distinction), sharper teeth (i.e. enhanced investigatory powers, digital-age evidence-gathering, binding obligations on government entities), new resolution pathways (i.e. settlement with penalty reductions, refined leniency, undertakings with fines) and greater accountability (i.e. High Court appeals, whistleblower protections, informer rewards) collectively signal a more muscular enforcement era.

Despite this comprehensive overhaul, the absence of a general merger control regime means Malaysia continues to lag behind its ASEAN peers, although merger control is expected within the 13^th  Malaysia Plan period. Until that gap is closed, potentially anti-competitive transactions outside the communications and aviation sectors will proceed without mandatory scrutiny.

The message is clear. MyCC is preparing for a more active, better resourced and internationally-aligned enforcement era. Businesses should not wait for the Bills to pass the Dewan Negara. The time to audit existing agreements, stress test distribution and pricing arrangements, update compliance programmes, review document retention policies and prepare for enhanced regulatory engagement is now.

If you have any queries on the above, please reach out to our team set out on this page.

For regional Competition & Antitrust matters, please see Rajah & Tann Asia’s Competition & Antitrust Practice for more information.

Contribution Note

This Legal Update is contributed by the listed Contact Partners, with the assistance of Senior Associate Samuel Ong.