Chicken and chicken eggs industry: Investigations are ongoing

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) views the recent statements reported in the media on the allegations of cartel in the chicken industry seriously. In fact, MyCC has established a special task force to thoroughly investigate competition related issues in the chicken and chicken eggs industry following the directive given by the National Action Council on Cost of Living (NACCOL), as announced in MyCC’s Press Release dated 1 February 2022.

Following the establishment of the special task force, MyCC had invoked its power under the Competition Act 2010 to pursue further investigations where considerable inroads have been made, which include conducting raids and statement taking involving relevant enterprises, as set out in MyCC's Press Release dated 9 March 2022.

In addition to the above, certain parties have also indicated their willingness to explore applying for leniency under Section 41 of the Competition Act 2010 to cooperate with MyCC in the investigation. Under the leniency regime, any party involved in cartel can extend cooperation to MyCC in the investigation for the purpose of obtaining leniency in MyCC’s decision.

The chicken industry is one of the largest segments of Malaysian agriculture involving an extensive supply chain and multiple sub-sectors such as chicken feed manufacturing, supply of day-old chicks, chicken farming, chicken distributorship and so on. Evidences and documents obtained in the course of the complex and lengthy investigations require careful consideration and assessment. As such, MyCC welcomes the cooperation and assistance of relevant stakeholders and members of the public in addressing the issue.