27 October 2021

On 5 October 2021, the Malaysia Competition Commission (“MyCC”) published its 7th Market Review titled “Market Review under the Competition Act 2010 for Selected Transportation Sectors in Malaysia (Port Logistics Ecosystem and Motor Vehicles Warranty)” (“Market Review”).

The Market Review uncovered a total of 15 issues within the port logistics ecosystem and four issues within the motor vehicles warranty sector, including competition issues, market-driven and regulatory issues.

The recommendations in relation to the port logistics ecosystem include:

  • MyCC to invoke its enforcement power to determine whether there are cartels formed concerning the landside charges, shipping liner charges, depot gate charges, and fuel adjustment factor;
  •  a policy shift in concession agreement for port operators; and
  •  rectifying the regulatory and market-driven issues in relation to custom procedures, regulatory framework, standardisation and the licensing of off-dock and on-dock players; and
  •  empowering MyCC with mergers and acquisitions control.

The recommendations in relation to the motor vehicles warranty sector include:

  • MyCC to invoke its enforcement powers to determine whether the dealings by the car manufacturers in the repair industry raise competition concerns; and
  •  introduction of a “Lemon Law” and other improvements on the warranty processes in order to protect the interests of vehicle owners.