KUALA LUMPUR – Leong Hup International Bhd (LHI) has refuted the Malaysian Competition Commission’s (MyCC) allegations of infringement related to the alleged collusion and price-fixing with other poultry feed firms.
The company, along with its subsidiary Leong Hup Feedmill Malaysia Sdn Bhd (LFM), said it would be taking action over the commission’s decision to impose a RM157 million fine on the latter.
“The company (LHI) and LFM strongly believe that MyCC’s finding of infringement is without merit,” it said in a filing with Bursa Malaysia.
“In consultation with its external legal counsels, the company and LFM will take the necessary and appropriate actions to challenge the decision and apply for a stay.”
MyCC issued the RM157,470,027.02 fine to LFM after finding that the firm had colluded with four other companies and agreed to raise the prices for their products in the local chicken-rearing industry.
The four are Dindings Poultry Development Centre Sdn Bhd (RM70,023,622.35), FFM Bhd (RM42,689,583.64), Gold Coin Feedmills (Malaysia) Sdn Bhd (RM97,511,670.48), and PK Agro-Industrial Products (M) Sdn Bhd (RM47,800,793.00).
Besides the fine, LFM must include specific documentation in its monthly report on poultry feed prices, implement a competition law compliance programme, and enrol a broader range of employees within a specified deadline.
LFM must also include a provision in its Code of Conduct, acknowledging that the involvement of any employee or board member in competition law infringements is misconduct. – December 23, 2023