By: Nicole Leong
Date: 28.7.2026
Introduction
On 2 July 2026, the Parliament passed the Competition Amendment Bill 2026 and the Competition Commission Bill 2026. The aforesaid have already attracted significant attention with many legal updates have summarised the key changes, including the broader scope of application of the prohibition under the Competition Act 2010, stronger investigation powers of MyCC and enhanced and new enforcement tools, e.g. settlement procedures, undertakings and leniency.
Those summaries are useful. But for Malaysian businesses, the more important question is not only what the law says. The more practical question is this: if the MyCC scrutinises a business, can the business demonstrate that its documents and processes are lawful and properly managed? As the Competition Amendment Bill 2026 and the Competition Commission Bill 2026 will strengthen enforcement powers by MyCC in Malaysia, businesses should now move beyond general competition law awareness and start building enforcement-ready competition compliance.
Why enforcement readiness matters – responding lawfully to MyCC information requests and dawn raids
The major compliance impact arise from the bills is the strengthening of MyCC’s information-gathering and investigation powers.
The proposed amendments would introduce a specific power for the MyCC to require information, particulars or documents for the purpose of conducting a market review. This means businesses may be required to provide information even where the regulator is studying a market more broadly, and not only when there is a formal investigation by MyCC. This is significant because market reviews can shape enforcement priorities. They may identify market structures, market conduct issue that warrants a formal investigation. Hence, a response to MyCC should not be handled as a routine administrative exercise. It may affect the direction of an inquiry, market review or investigation.
The proposed amendments also strengthen MyCC’s general power to require information. A person may be directed to provide information, produce documents, make copies of documents or appear before a Commission officer to give evidence. Importantly, the person providing information must ensure that the information, particulars or documents are true, accurate and complete. The person may also be required to provide an express representation to that effect. This creates a real process risk for businesses. The risk is not only whether the business has infringed competition law. There may also be risk in how the business responds to the regulator, e.g.:
- incomplete or inaccurate responses;
- inconsistent explanations;
- delay in responding to notices.
Businesses should therefore treat information requests from MyCC seriously from the outset and seek legal advice when in doubt.
The proposed amendments also highlight the importance of dawn raid readiness. Businesses should ensure that reception staff, IT teams, legal teams and management know what to do if enforcement officers attend the premises. Dawn raid readiness is not about obstructing an investigation. It is about ensuring that employees understand their rights and obligations, preserve documents properly and respond to MyCC in a lawful and orderly manner
Tender and procurement teams should pay particular attention
We anticipate bid rigging remains one of the enforcement priorities of MyCC. Businesses involved in public procurement, GLC tenders, construction or other tender-driven sectors should take this seriously.
Competition law risk in tenders may arise from obvious conduct such as allocating contracts or submitting cover bids. But risk may also arise from less obvious situations, including improper information sharing, use of common tender agent, improper subcontracting arrangements or coordination between bidders before bid submission.
Tender teams should therefore be trained to understand that when certain tender related conduct may give rise to competition law risk.
Settlement, undertakings and leniency
The amendments also point towards a more sophisticated enforcement environment with more tools to be made available to MyCC.
The proposed amendments introduce a settlement mechanism. After a proposed decision has been issued, the MyCC may offer settlement to an enterprise under investigation. To accept the settlement, the enterprise must admit liability. If accepted, MyCC will make a decision on infringement and impose a financial penalty, with a reduction of up to 40%.
The proposed amendments also revise the undertaking mechanism. MyCC may accept an undertaking before issuing a proposed decision, subject to conditions. Undertakings can be useful. They may allow a business to address MyCC’s concerns without going through a full investigation process. However, undertakings must be approached carefully. They may require changes to business practices, reporting obligations or other terms and conditions.
There are also changes to the leniency regime. This is especially relevant for cartel conduct, including price fixing, market sharing, output restrictions and bid rigging. Businesses that discover potential cartel exposure should assess quickly whether leniency may be available.
In competition investigations, delay can reduce strategic options. As soon as an enterprise receives a notice from MyCC, it should promptly assess its situation by considering inter alia:
- whether MyCC has commenced a formal investigation?
- whether the conduct in question raise a concern under Section 4 or Section 10 of the Competition Act 2010?
- whether to offer an undertaking, seek leniency or accept settlement?
A business that identifies an issue early may in a better position to take appropriate legal advice and consider lawful options such as undertakings, leniency or settlement where appropriate than one that reacts only after receiving a proposed decision from MyCC.
Practical steps towards enforcement-ready compliance
Under Section 40 of the Competition Act 2010, the MyCC may impose a financial penalty where it has made a decision that there is an infringement of a prohibition under Part II. A financial penalty shall not exceed 10% of the worldwide turnover of an enterprise over the period during which an infringement occurred.
Businesses should not wait for the amendments to come into force before reviewing their competition law exposure. Business can consider the following practical steps towards achieving compliance with the Competition Act 2010:
- Review key contracts for competition law risk, especially exclusivity, pricing, rebate, distribution, access and non-compete provisions.
- Review dealings with competitors, including trade association participation, industry meetings and informal communications.
- Review tender practices, especially any contact with competitors, subcontractors, agents or consultants.
- Put in place dawn raid response protocol and conduct dawn raid training for employees.
Concluding remarks
The Competition Amendment Bill 2026 and the Competition Commission Bill 2026 signal a more enforcement focused competition law environment in Malaysia. For businesses, the key takeaway is not merely to understand the proposed amendments, but to consider whether their internal processes and documents can withstand scrutiny by MyCC. Businesses should therefore move beyond general awareness towards enforcement readiness. Businesses that prepare early will be in a better position to respond effectively to MyCC and make an informed decisions if competition law issues arise.
This update is for general information only and does not constitute legal advice.
Please reach out to us at general@wenlaw.co if you have any questions.