Paving the way for M&A oversight

When amendments to the Competition Act 2010 and Competition Commission Act 2010 were passed in July giving the Malaysia Competition Commission (MyCC) wider powers of investigation and enforcement, the move stopped short of including supervision of mergers and acquisitions (M&A) that typically attract competition concerns, which can be difficult to address after the fact.

However, the argument is that building up MyCC’s capacity through the amendments of its investigation and enforcement powers first is a practical approach before taking the next step in M&A oversight.

MyCC chief executive officer Datuk Iskandar Ismail stresses that while the 2026 amendments do not introduce a merger control regime, this should not be interpreted as the government abandoning the policy.

“Rather, it reflects a deliberate and phased approach to competition law reform. Following the launch of the Thirteenth Malaysia Plan (13MP) in July 2025, the government adopted a more strategic approach to strengthening Malaysia’s competition framework,” he says, noting that amendments to the Competition Act 2010 will be done in two phases. The first phase was completed recently and MyCC will now begin to undertake the second phase of the review, which is expected to be completed by 2030.

“Merger control regime was initially proposed as part of this law amendment exercise.

“However, the government decided that the immediate priority should be to strengthen the existing competition law framework by addressing long-standing operational and enforcement gaps,” Iskandar says.

He adds the 13MP period from 2026 to 2030 is being used to study and bring a unified competition regulatory framework that is applicable across industries by a single competition regulator.

“It’s not easy to centralise the regulatory powers under a unified framework. We’re still studying it,” he adds.

“This review under 13MP will provide the foundation for a future merger control regime that is comprehensive, coherent, proportionate and business- friendly, while reducing regulatory fragmentation and providing greater certainty for businesses and investors,” he says.

MyCC continues to monitor developments and identify structural competition issues as well as recommending policy improvements that promote competitive, innovative and investment-friendly markets.

Currently, competition oversight for numerous industries exists respectively under the Energy Commission Act 2001, the Communications and Multimedia Act 1998, the Civil Aviation Authority of Malaysia Act 2017, the Gas Supply Act 1993 and the Postal Services Act 2012. Meanwhile, the corporate portion of M&As of listed companies come under the regulatory supervision of the Securities Commission.

To effectively govern M&A activities, the competition ecosystem needs to be strengthened first, including reviewing competition functions across industries such as communications and multimedia and civil aviation to support a more consistent regulatory framework under a comprehensive Competition Act.

Relating to concerns from the business community and investors about whether Malaysia’s economy and market is ready for MyCC’s wider powers when compared with the developed economies or markets following the completion of the Phase 1 amendment exercise, Iskandar says the country is ready.

“The amendments were made after exhaustive studies across markets such as the European Union, Japan and Australia. These countries all have comprehensive competition laws and for us, the right approach is to carry out the amendments to the Competition Act 2010 in two phases,” he says.

Despite the broader scope the amendments cover, which includes widening the definition of enterprise to include entities that carry out economic activities offering goods or services to the market subject to the Competition Act 2010 regardless of their legal status, the amendments do not mean that every organisation or activity falls under MyCC’s jurisdiction.

“The assessment by MyCC continues to be guided by the Competition Act 2010 and internationally accepted competition law principles,” Iskandar says.

This means that in practice, MyCC will continue to undertake evidence-based assessments by examining whether conduct by an entity restricts competition by preventing, restricting or distorting the competitive process, resulting in higher prices, reduced consumer choice, lower quality, diminished innovation or exclusion of competitors.

The Competition Act 2010 will also apply to commercial activities carried out by non-commercial entities. Iskandar says examples are collusions among enterprises or businesses that leverage on a trade or industry association to form cartels.

“Market dominance or size alone does not trigger MyCC intervention; the authority’s scrutiny is confined to actions that disrupt fair competition.

“Decisions grounded in legitimate business strategy including independent pricing, innovation and operational efficiency, remain fully compliant with the law,” he points out.

“We will continue to allow the markets to grow, for commercial activities to take place, as long as there’s no anti-competitive or cartel behaviour that will affect the markets or impact broader economic activities,” Iskandar says.

He acknowledges that there are concerns over certain recent M&A deals in the automotive or construction industries that may give market dominance for particular companies.

“Our regulatory authority kicks in under two main conditions: when heavy market concentration enables collusion among remaining players, or when a company abuses a dominant market position,” he says.

MyCC also has options if such issues arise, through issuing policy advice and also carrying out market reviews. The government can choose to act on the advice.

One area of commercial activities that has grown exponentially and comprise an important part of the economy is e-Commerce.

In its market review of the digital economy ecosystem released in February, MyCC has recommended that a central digital economy task force be set up since e-Commerce transactions potentially involve several jurisdictions, including the Domestic Trade & Cost of Living, Finance and the Malaysian Communications & Multimedia Commission.

“Competition laws can’t solve everything, there needs to be a whole-of-nation approach for this,” Iskandar says.

“Ultimately, our role is not to penalise size or success. Businesses are free to compete vigorously. What the law prohibits is conduct that unfairly prevents others from competing on merits, to the detriment of businesses, consumers and the overall economy,” assures Iskandar.