Minister says MyCC wrapped up probe into chicken cartels, answers to be known soon

KUALA LUMPUR, July 28 – The Malaysian Competition Commission (MyCC) has completed its investigations into 20 main chicken suppliers in the country amid allegations of “cartels” causing poultry prices to shoot up nationwide, the Dewan Rakyat was told today.

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi, however, said he could not reveal its findings as it was beyond his jurisdiction.

"I've been told that MyCC are ready with their investigations into the alleged existence of cartels in the poultry production companies in Malaysia but since they are a commission, I cannot divulge what the results of their investigations are," Nanta said during Question Time in reply to Pontian MP Datuk Seri Ahmad Maslan.

"So please do not worry as I've been told they will reveal all once they have fine-tuned their SOPs and after that they will reveal what they found from their investigations to the public," he added.

MyCC said in April that it was investigating political interference in the issue of cartel operations in the poultry industry. At that time, Nanta said the commission needed a detailed report into these allegations to determine its validity.

Later that same month, MyCC clarified that it is not investigating certain politicians in connection with cartel operations in the poultry industry.

Its chief executive officer Iskandar Ismail said the ongoing investigations only focused on a group of poultry industry players whose actions were seen as raising concern under Section 4 of the Competition Act 2010.

Retail prices of chicken and eggs have been creeping upwards this year.

Claims of cartels controlling the market price of poultry in the country, giving rise to the volatility in prices were first reported by national daily Utusan Malaysia.

The Malay newspaper cited unnamed sources claiming that almost the entire chain of the livestock industry is controlled by several large cartels that use associations as their proxies.

Utusan’s news reports resulted in criticism against the Ministry of Domestic Trade and Consumers Affairs for not solving the issue of farmers who have been burdened with the rising cost of operations due to the high prices of wheat and chicken feed.