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Malaysia Fines Three Contractors for Bid Rigging

Editorial
Last updated: July 17, 2025 9:30 am
Editorial
Published July 17, 2025
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Photo by engin akyurt on Unsplash

The Malaysia Competition Commission (MyCC) has imposed a total financial penalty of RM2.98 million (USD 634,000) on three companies — Abadi Malaysia Sdn. Bhd., Kota Lanskap Sdn. Bhd., and Usia Maintenance Sdn. Bhd. — for forming a bid rigging cartel in six public tenders issued by Perbadanan Putrajaya (PPj) between 2018 and 2021, collectively worth nearly RM45 million (USD 9.6 million).

The Infringement Decision, served on 7 July 2025, follows a comprehensive investigation under Section 4 of the Competition Act 2010. The probe revealed coordinated collusion among the three enterprises, facilitated through WhatsApp, emails, and meetings. Evidence showed that tender documents were prepared jointly, often at a single location under Abadi Malaysia’s direction. Raids further uncovered confidential documents stored at Kota Lanskap’s premises, confirming centralised planning of bid submissions.

While Usia Maintenance and Abadi Malaysia won two tenders each, all three companies were found to have engaged in cartel conduct across all six tenders.

MyCC calculated the penalties by considering the severity of the infringement and the level of cooperation shown by each company during the investigation. As a result, Abadi Malaysia Sdn. Bhd. was fined RM1,587,951.59 (approximately USD 339,000), Kota Lanskap Sdn. Bhd. was fined RM614,508.28 (approximately USD 131,000), and Usia Maintenance Sdn. Bhd. received a penalty of RM774,555.28 (approximately USD 165,000).

“MyCC remains firm in its commitment to ensure integrity and competition in public procurement,” said Chief Executive Officer Datuk Haji Iskandar bin Ismail. “Bid rigging is a serious offence that damages market trust and wastes public resources. We urge businesses to compete ethically and encourage whistleblowers to report any suspicious conduct.”

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