By Lian Cheng
KUCHING, Dec 6: Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) released a list of 11 sugar approved permit (AP) holders in Sarawak.
They are Sunshine Food Manufacture Co. Sdn Bhd, Dahfa Foods Manufacturing Sdn Bhd, Sundrop Fruit Juices Sdn Bhd, KNG LAK (E.M.) Sdn Bhd, Alwi Food & Beverage Industries Sdn Bhd, Ta Yung Food Industries Sdn Bhd, Stampin Confectionery Sdn Bhd, Foodtake Industries Sdn Bhd, Kit Hin Company Sdn Bhd, F & N Sarawak and Teck Lee Seng Coffee Product.
The list was disclosed by Bandar Kuching MP Dr Kelvin Yii, who welcomed the ministry’s strong efforts in carrying out anti-monopoly actions by promoting greater competition in prices and also protecting the welfare of the consumers.
“This is (also) shown through efforts that broke the monopoly of sugar supply in Sarawak where 11 new APs to import refine sugar was given to 11 food and beverages (F&B) production company in Sarawak in 2019,” said Dr Yii in a statement today.
He asserted that before this, all the local Sarawak companies had no choice but to purchase their refined sugar from two AP holders at a cost of RM2.60 to RM2.70 per kg.
“Now through the efforts of the federal government, these companies and many others that are also applying can import the sugar directly from other sources at an average of RM1.50 per kg which help keep business costs low and avoid prices of products to increase.”
Dr Yii also pointed out that the Malaysian Competition Commission (MyCC), an agency under the Ministry of Domestic Trade and Consumer Affairs, is also looking into monopolies involving other industries.
“Based on Section 10 of Competition Act 2010, MyCC has the authority to investigate any companies that misuse any monopoly or (hold) dominant positions in the market to directly or indirectly imposing unfair purchase or selling price or other unfair trading conditions.
“So far MyCC has investigated a few companies on allegations of monopoly including Megasteel, Giga Shipping Sdn Bhd., MyEG Sdn Bhd, DagangNet Sdn Bhd and others.
“Out of this, MyEG Sdn Bhd has been fined RM9.4 million for misusing their company position to monopolise the market to renew their ‘Pas Lawatan Kerja Asing (PLKS)’,” said Dr Yii.
He said, on top of this, the federal government through the Ministry of Health also had decided to end their concession with Pharmaniaga which was the sole concessionaire providing logistics and distribution services of medical supplies in Malaysia since 1994.
Dr Yii said following the termination of Pharmaniaga’s concession, an open tender system will be implemented.
“There is still much more to be done, but the federal government is taking positive steps in addressing the long-standing issue that is very technical in nature and may involve a lot of legal implication, and in some cases high compensations due to the lopsided contracts signed by the previous administration,” said Dr Yii. —DayakDaily