KUALA LUMPUR: Small and medium enterprises (SMEs) should understand the Competition Law better, as this would enable them to reap the tremendous opportunities available and gain higher profits, while taking businesses to a higher level.
SME Corporation Malaysia CEO Datuk Dr Hafsah Hashim said by doing so, it would indirectly help SMEs understand “the rules of game” for competing in the current competitive international market, and especially for those involved in e-commerce.
“(As) they open up to the world, there is a need to understand how to benefit from this law in competing not just with other SMEs, but also bigger businesses,” she told Bernama.
She was met on the sidelines of the “Helping Malaysian SMEs Understand The Competition Law” seminar, jointly organised by SME Corp and the Malaysia Competition Commission (MyCC), here yesterday.
The Competition Law, under the Competition Act 2010, deters large or small firms from colluding among themselves in fixing their selling price above the actual market price, thereby inflating the price of goods and services.
The Act also deters those intending to fix their selling price too low with the intention of killing off their competitors, which are mainly the small-sized SMEs and microenterprises that usually have a higher cost structure.
Besides that, the Act also deters trade associations from agreeing among themselves to raise prices arbitrarily.
Hafsah said with better understanding of the Competition Law, SMEs could enjoy a stronger corporate culture and employee commitment to business integrity, which would enhance a company’s reputation.