Retailers and competition: Exemption will not come easily

Source From (The Sun Daily): http://www.thesundaily.my/news/373092

Published: on 09 May 2012
Karen Arukesamy
sunbiz@thesundaily.com

KUALA LUMPUR (May 9, 2012): Retail groups seeking exemption from complying with the Malaysian Competition Act 2010 will not have it easy.

Domestic Trade, Cooperatives and Consumerism Deputy Minister Datuk Rohani Abd Karim said: "We understand that several retail groups, including major consumer product suppliers, have applied to MyCC for exemption from the Act.

"But the commission would not easily grant exemption without considering the concerns of all stakeholders like the hypermarket chains and small traders," she told reporters after launching the Malaysian Franchise Association (MFA) AGM yesterday.

Agreeing that granting one company an exemption would invite all the others as well, Rohani said the objective of the Act to remove monopoly and encourage competition would be rendered pointless.
She said although the Act had been gazetted in 2010, the commission has been given about a year to be fully set up and look into matters concerning retailers and consumers.

"Retailers and consumers should have faith in MyCC. It is still in the application stage. The commission would not make decisions without taking into account all aspects of the issue," she said.
Rohani added that the commission's main role is to protect the competitive process for the benefit of businesses, consumers and the economy.

"Thus granting exemption may not (be)…very good," she said.
A Bernama commentary, published by SunBiz on Monday, said several retail groups, including major consumer product suppliers like Nestle Products Sdn Bhd, have applied to MyCC for exemption from the Act.

Meanwhile, Rohani called on small businesses to expand into franchising given the low risks involved.
"The government with the cooperation of MFA will continue to increase awareness among businesses on the benefits of franchises and how to expand them," she said.