Thursday, July 17, 2008
Posted by D. Daniel Sokol
Wan Liza MD Amin Fahmy writes on Malaysia and Competition Law: EC as Comparator.
ABSTRACT: In advent of the 'New Economy' towards globalization and liberalization, Malaysia has placed much importance on creating a competitive environment for the economy. In line with the concept that competition creates efficiency and allows for the reflection of true prices in the market, Malaysia has initiated substantial competition building measures since the mid-1980's. Some of the steps taken towards deregulation and liberalization included encouragement of foreign investors, privatization of existing and new sectors such as fixed-lined and cellular telecommunications, public utilities and infrastructure; and in promoting high technology trade, especially e-commerce. In addition, Malaysia has also allowed for the increased in foreign equity participation and the diversification of the types and scope of services offered, for example in transportation and Information Technology (I.T.).
The implementation of the said law is exercised in a piece meal as stated above. Merger and takeover also adopt competition policy in its code known as Malaysian Code on takeovers and mergers. However, the code does not address measures of control for merger abuses particularly in corporate merger. This aim of this paper is to discuss whether EC may be use as comparator to Malaysia. This paper will base its discussion on background, history legal system, social, culture and relevant institutions of both countries.