31 CHILDCARE SERVICE ENTERPRISES FACE POSSIBLE PENALTIES FOR ALLEGED PRICE FIXING CARTEL

KUALA LUMPUR, 29 DECEMBER 2025 – The Malaysia Competition Commission (MyCC), an agency under the Ministry of Domestic Trade and Cost of Living (KPDN), has issued a Proposed Decision against 31 enterprises for their alleged participation in a horizontal price fixing agreement relating to the provision of childcare services within the state of Kelantan. The 31 enterprises are provisionally found to have infringed section 4(1) read together with sections 4(2)(a) and 4(3) of the Competition Act 2010 [Act 712].

Through MyCC’s investigations, it was discovered that the enterprises had not only discussed but ultimately agreed to fix floor prices for childcare services during an association meeting convened in September 2023. The decision reached at the meeting was subsequently communicated to all attendees through a memorandum. Following the meeting, a public announcement was made via the association’s official Facebook account, stating that the childcare centre operators had unanimously agreed to fix floor prices for childcare services effective from 2024. MyCC finds that such agreement has the object of significantly preventing, restricting or distorting competition in the provision of childcare services within the state of Kelantan.
It is important to highlight that at this stage, the Proposed Decision is a provisional finding and it should not be taken that these enterprises have conclusively infringed the Act 712.

The enterprises named in the Proposed Decision were notified of the proposed penalties and directions today. They are given the opportunity to submit their written representations within 30 days upon receiving the Proposed Decision as well as present their oral representations before the Commission on a date to be determined later. MyCC will issue its Final Decision only after considering the representations made by these enterprises together with the evidence obtained during the investigation.

Tan Sri Dato’ Sri Idrus bin Harun
Chairman
Malaysia Competition Commission