The New S_tan In Town - The Competition Act 2010

Here is a short comment by a reader (thank you very much) who says that there are 735 gomen created and State Owned monopolies in this country.  These monopolies are bleeding the people dry, especially the Malays who are the largest consumer group in Malaysia.

First here is the comment : 

Monopoly antara punca berlaku peningkatan kos barangan di negara ni, di  mana produk asasi / keperluan dikawal dan dikuasai oleh syarikat swasta atau SOE (State Own Enterprise) yang diberi AP atau lesen oleh Kerajaan. 

Syarikat SOE ini dilantik sebagai pembeli atau pembekal tunggal barangan atau perkhidmatan, dan mereka menentukan harga dipasaran tempatan. 

Antaranya BERNAS, MSM, ASTRO, TNB, POS Malaysia dan banyak lagi. Ada 735 syarikat monopoly di negara ini.

Sebagai contoh.. bila harga gula dinaikkan baru baru ni kerana MSM mendakwa mereka mengalami kerugian kerana kontrak jangka panjang dengan syarikat pengeluar gula luar negara, beli dengan harga mahal, akibat kejatuhan nilai Ringgit yang begitu teruk.  

MSM terpaksa membayar ikut kadar semasa.. akhirnya kenaikan itu diserahkan kepada . . . . RAKYAT !!   

Saturday, April 15, 2017 5:04:00 PM 

My comments : Kepada sdra yang mengirim komen ini, semoga sdra/sdri sanggup memberi pendapat yang lebih panjang dan mendalam. Boleh emel kepada saya.

Folks, there is something new called the Malaysian Competition Act 2010. It was passed in 2010 but is now beginning to "kick in".

As I have said before, many times before, these types of legislation is often crafted by the dunggus who have no idea about business.   I am informed that the dunggus in Khazanah Nasional were closely involved in crafting this Competition Act.

The commentor above suggests above there are now 735 monopolies in the country that have been created with the gomen's consent, many of which are state owned enterprises. There are also many GLCs which are monopolies and oligopolies.

Banking in Malaysia is an oligopoly - there are only SIX anchor banks in the country (according to an ex Finance Minister).  This is certainly an oligopoly. However since most of the anchor banks are GLCs, it is actually a gomen monopoly.

So what is the Competition Act 2010 doing about the monopoly / oligopoly in the banking sector? 

The banks can choke and kill off our economy. This is what is happening now. The "Islamic" banks are happily screwing the Malays and making them poorer (compared to the non Muslims, the Chinese, Indians etc) who apply to the conventional banks.

The bank which missed its dividend payment recently (depa sudah bayar ke belum?) is making billions through its Islamic financing schemes which impoverishes the Malays first. In the 1990s this bank hardly made more than RM50 million profit a year. Now they make billions of profit, almost completely from Malay people who take out "Islamic financing". Melayu miskin dulu.

Will the Competition Act be looking into the banking oligopoly in the country? It is a cartel.

What about APs' for the import of almost everything? Cars, cabbages, cigars, solar panels (granted to the daughter of a former KSN they say).

Most recently motorcar sellers and dealers, the motorcar trade magazines and the Press  ARE NOT ALLOWED TO REPORT SALES FIGURES OF MOTORCARS BY INDIVIDUAL MODELS.  This is also according to the Malaysian Competition Act 2010.

There is some really stupid and bizarre explanation given - if sales figures for high selling models are made known, the prices of their spare parts will go up !!

I say brader yang tak tahu niaga, the market (spare parts buyers, sellers, distributors, dealers) know the supply and demand for spare parts even without the Media at all.  

Pasai apa ngko orang ini bebal sangat? Daripada zaman Demang, sampai ke Ngah Ibrahim, sampai ke Yap Ah Loy dan Mydin Hypermarket  buyers and suppliers akan tahu demand and supply situation lah. They dont need media reports to know what is selling and what is not selling.

If  BMW X5 has a waiting list of ONE WHOLE YEAR, it means it is selling well lah. If Ford Ranger has a waiting list of SIX MONTHS it also means it is selling well lah.

There are other reasons behind this constant interference in the country's economy. 

The Federation of Malaysian Manufacturers and others have also complained that the Competition Act 2010 imposes undue and unnecessary burdens on businesses.  Since the FMM represents a largely Chinese business community there is certainly a racial slant to this issue. (Which I think is not entirely untrue).

The thinking is, if I can do it, you cannot do it. If I cannot do it, you cannot do it. If I dont know how to do it, you cannot do it. Etc.

Here is my conclusion :  If you morons behave like this, you will continue to become dirt poor.   You are messing with output and economic productivity. I can tell you things about Malay folks who have to borrow money just  to meet monthly expenses.   But I will not.