On 29 December 2025, the Malaysia Competition Commission (“MyCC”) issued a media release stating that it had issued a Proposed Decision against 31 enterprises for their alleged participation in a horizontal price fixing cartel relating to the provision of childcare services in the state of Kelantan.
 
According to MyCC, the enterprises allegedly discussed and agreed to fix floor prices for childcare services during an association meeting held in September 2023. The agreed prices were subsequently communicated to attendees through a memorandum, and a public announcement was later made on the association’s official Facebook account stating that the childcare centre operators had unanimously agreed to implement the fixed prices with effect from 2024.
 
MyCC has provisionally found that the enterprises had infringed section 4(1) read together with sections 4(2)(a) and 4(3) of the Competition Act 2010, on the basis that the agreement had the object of significantly preventing, restricting or distorting competition in the provision of childcare services within Kelantan.
 
MyCC has emphasised that, at this juncture, the Proposed Decision constitutes a provisional finding and should not be taken as a conclusive determination that the enterprises concerned have infringed the Competition Act 2010.
 
The enterprises concerned will be given the opportunity to submit written representations to MyCC within 30 days of receiving the Proposed Decision and to present oral representations before MyCC on a date to be determined. MyCC will issue its final decision after considering the representations made by the enterprises together with the evidence obtained during the investigation.
 
This Proposed Decision forms part of MyCC’s enforcement of the Competition Act 2010 in relation to alleged cartel conduct. It highlights the competition law risks associated with agreements among competitors to fix prices, including arrangements reached through industry or association platforms.
 
Alert by Tan Shi Wen (Partner) and Lee Li Zhu (Associate) of the Competition Law Practice of Skrine.