Two Enterprises Face Possible Penalties Over Alleged Bid-Rigging in $61 Million Highway Tender

Key Takeaways

• Provisional Finding: MyCC has issued a proposed decision against two enterprises for alleged bid-rigging in a highway construction tender valued at about $61 million (RM285 million).
• Alleged Conduct: The enterprises are provisionally found to have coordinated and shared information during the bid process, potentially distorting competition.
• Legal Basis: The case concerns a potential infringement of Section 4 of the Competition Act 2010, which prohibits anti-competitive agreements.
• Due Process Ongoing: The decision is not final; the enterprises have 30 days to submit written representations and may also make oral submissions.

Deep Dive

Malaysia’s competition watchdog has issued a proposed decision against two enterprises over alleged bid-rigging linked to a major highway construction project valued at approximately $61 million (RM285 million).

On January 14, 2026, the Malaysia Competition Commission (MyCC), an agency under the Ministry of Domestic Trade and Cost of Living, announced that it had provisionally found the two enterprises to have infringed Section 4 of the Competition Act 2010. The alleged conduct relates to the Central Spine Road construction tender issued by the Public Works Department.

According to MyCC, its investigation found that the enterprises had agreed to engage in coordinated information-sharing and collusion during the preparation and submission of their bids. The Commission’s provisional assessment is that this agreement had the object of significantly preventing, restricting, or distorting competition in relation to the public procurement process for the Central Spine Road tender.

MyCC stressed that the proposed decision remains provisional and should not be taken as a conclusive finding that the enterprises have infringed the Competition Act 2010. At this stage, the Commission has notified the enterprises named in the proposed decision of the potential penalties and any accompanying directions.

The companies have been given 30 days from receipt of the proposed decision to submit written representations. They will also be afforded the opportunity to present oral representations before the Commission on a date to be determined. MyCC stated that it will issue its final decision only after considering these representations alongside the evidence gathered during its investigation.

The case highlights MyCC’s continued focus on cartel enforcement in public procurement, particularly in high-value infrastructure projects where collusive conduct can undermine competition and increase costs for the public sector.

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