MyCC imposes RM2.98 million penalty on three contractors for bid-rigging in Putrajaya tenders

On 7 July 2025, the Malaysia Competition Commission (“MyCC”) issued its finding of infringement decision dated 30 June 20251 (“Decision”) against three (3) enterprises, namely, Abadi Malaysia Sdn. Bhd. (“Abadi Malaysia”), Kota Lanskap Sdn. Bhd. (“Kota Lanskap”), and Usia Maintenance Sdn. Bhd. (“Usia Maintenance”) (individually a “Party” and collectively the “Parties”), for infringing section 4(1) read with section 4(2)(d) of the Competition Act 2010 by engaging in bid-rigging practices in relation to six tenders awarded by Perbadanan Putrajaya between 2018 and 2021, valued at approximately RM44.85 million.
 
The investigation was initiated following a complaint concerning potential bid-rigging in tenders for building and facility maintenance, landscaping, and civil engineering works in Putrajaya. The MyCC conducted a full investigation which included raids on the premises of the parties involved, collection of 24 witness statements, and a detailed review of relevant documents and communications.
 
The MyCC found that the Parties had engaged in coordinated bid-rigging conduct led by Abadi Malaysia. The arrangement was facilitated through information sharing via WhatsApp, emails, and meetings, and involved the preparation of tender documents by employees from different enterprises at a single location under the coordination of Abadi Malaysia. During a raid, the MyCC also found confidential documents belonging to the Parties at the premises of Kota Lanskap, indicating centralised coordination in relation to the tender submissions.
 
The bid-rigging arrangement resulted in Usia Maintenance and Abadi Malaysia each being awarded one of the six tenders. However, the MyCC found that both Parties had also engaged in cartel conduct in the remaining four tenders, based on evidence of coordinated behaviour throughout the tender process. The MyCC found that Kota Lanskap had participated in the same conduct across all six tenders, despite not being awarded any.
 
Following its finding of an infringement by all the Parties, the MyCC imposed the following financial penalties on each of the Parties for infringing the section 4 prohibition of the Competition Act 2010:
 
Enterprise Financial Penalty
Abadi Malaysia RM1,587,951.59
Kota Lanskap RM614,508.28
Usia Maintenance RM774,555.28
Total RM2,977,015.15
 
The MyCC had issued a proposed decision to the Parties on 10 September 2024 in relation to the six tenders awarded by Perbadanan Putrajaya. Our alert on the proposed decision can be accessed here.
 
To date, we are not aware whether the Parties will appeal the Decision to the Competition Appeal Tribunal.
 
Alert by Tan Shi Wen (Partner) and Lee Li Zhu (Associate) of the Competition Law Practice of Skrine.
 
 

1 The MyCC’s media release on the issuance of its finding of infringement can be accessed here. The public version of the MyCC’s decision can be accessed here.

This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.