Competition Law and SMEs in Malaysia: to Exempt or Not?


The Malaysian Competition Act 2010 prohibits anti-competitive conducts in Malaysia. Whilst the notion of competition law is to promote economic development by protecting the process of competition, these legal obligations might leave Small and Medium Enterprises (SMEs) vulnerable as they are ill equipped to comply with the law. Consequently SMEs might be pressured to withdraw from the market in lieu of regulatory enforcement risks. This could potentially be detrimental to Malaysia’s economic interests, especially in rural areas where SMEs are the main provider of essential services. We argue that the Malaysian government should grant an interim exemption or on a case by case basis to SMEs. Such measures could offer SMEs more time for transition from the traditional or localized network based business structure into a modern competitive business.

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Publication Date

18 December 2019

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Future Academy



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1st Edition




Business, management, behavioural management, macroeconomics, behavioural science, behavioural sales, behavioural marketing

Cite this article as:

Ramaiah*, A. K., & Young, A. (2019). Competition Law and SMEs in Malaysia: to Exempt or Not?. In Z. Bekirogullari, M. Y. Minas, & R. X. Thambusamy (Eds.), Business & Economics - BE-ci 2017, vol 1. European Proceedings of Multidisciplinary Sciences (pp. 48-58). Future Academy.