The Malaysia Competition Commission ("MyCC") issued its finding of infringement decision dated 27 February 2025 ("Decision") against eight enterprises for infringing section 4(1) read with section 4(2)(d) of the Competition Act 2010 by engaging in bid-rigging practices concerning three public infrastructure tenders awarded by the Public Works Department (JKR) and the Department of Drainage and Irrigation (JPS) in 2019. The affected tenders, valued at approximately RM474 million, include: 

MyCC launched an investigation following a complaint of bid-rigging in TENDER CSR: 3B & 3C and TENDER CSR: 3J. During the course of their investigation, MyCC discovered that the same group of enterprises had also engaged in bid-rigging activities in TENDER RTB: SG BULOH, prompting an expanded review into all three tenders.
 
The MyCC found that the bid-rigging cartel was orchestrated by Mangkubumi Sdn. Bhd. (“Mangkubumi”), with Pintas Utama Sdn. Bhd. (“Pintas Utama”) serving as the central coordination point. The enterprises colluded by exchanging information through emails and meetings, and preparing tender documents primarily at Pintas Utama’s premises. MyCC’s dawn raids led to the seizure of key evidence, including bid documents and correspondence among the parties.


The investigation further found that IDX Multi Resources Sdn. Bhd. (“IDX Multi Resources”) and Menang Idaman Sdn. Bhd. (“Menang Idaman”) were awarded TENDER CSR: 3B & 3C and TENDER CSR: 3J, respectively, and subsequently subcontracted both projects to Mangkubumi. Under this arrangement, Mangkubumi assumed the role of the main contractor for both projects before further subcontracting the projects to YCH Sdn. Bhd. (“YCH”).
 
For TENDER RTB: SG BULOH, MyCC found that IDX Multi Resources, after securing the project, directly subcontracted it to YCH.
 
As a result of the bid-rigging conduct, MyCC imposed a total financial penalty of RM92,876,078.90 on the infringing enterprises, with individual fines as follows:
 

 
According to Encik Iskandar Ismail, MyCC’s Chief Executive Officer, the MyCC is actively investigating 13 other bid-rigging cartels involving 561 enterprises linked to tenders worth RM2.37 billion, with further complaints concerning 463 enterprises tied to tenders valued at RM9.27 billion currently under assessment. The increased allocation of RM27 million by the Government to MyCC under the 2025 Malaysian Budget may help to enhance the resources available to the MyCC in its quest to eradicate the scourge of bid-rigging in public procurement.
 
To date, we are not aware whether the eight enterprises 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.