A Malaysian High Court has granted a stay on a record USD 78 million fine imposed by the Malaysia Competition Commission (MyCC) against four major feedmillers.
The decision allows the companies to pursue judicial review, challenging the legality and fairness of MyCC’s ruling. The fine stemmed from alleged cartel activities in the poultry feed sector.
Legal challenge and companies involved
The High Court’s ruling follows a December 2024 decision by the Competition Appeal Tribunal (CAT), which had denied a stay of the fine. The feedmillers then sought judicial review, a process focused on the legality and fairness of regulatory decisions rather than the merits of the case.
These four Bursa Malaysia-listed companies involved are:
A fifth feedmiller named in MyCC’s probe, PK Agro-Industrial Products (M) Sdn Bhd, under Thailand’s Charoen Pokphand Group, is not part of this judicial review.
High Court Judge Datuk Amarjeet Singh Serjit Singh also ordered MyCC to pay USD 1060 in costs to the four feedmillers.
Largest fine in MyCC’s history
MyCC originally imposed a USD 88 million fine on the five feedmillers for colluding to fix poultry feed prices—the largest penalty in its 12-year history.
The commission claimed the companies coordinated price increases on poultry feed containing soybean meal and corn, which account for nearly 73% of poultry production costs.
Between January 2020 and June 2022, MyCC found evidence of identical price hikes ranging from USD 0.21-0.84 per 50kg bag.
Market impact
The five feedmillers collectively control about 40% of Malaysia’s feed market, making the case highly consequential for the national poultry supply chain.
Parent companies Leong Hup and PPB have publicly rejected MyCC’s findings, stating the allegations lack merit.
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