Amalgamated Industrial Steel Berhad Case Study

INTRODUCTION:
Company: Amalgamated Industrial Steel Berhad
Amalgamated Industrial Steel Berhad (‘AIS’), was incorporated initially as a private limited company on 20 November 1969 and made history in being the first manufacturer of steel pipes in Malaysia. It was formed by a group of leading local hardware importers and consumers supported by Tokyo Boeki Limited and Kawasaki Steel Corporation, two Japanese organizations that were renowned in the steel industry. The company commenced operations with an initial paid-up capital of RM4 million, out of an authorized capital of RM10 million on 18 May 1971.
Following its steady growth and success, AIS was converted into a public company, Amalgamated Industrial Steel Berhad (‘AISB’) on 10 December

According to the Malaysian law, this term is defined as ‘a situation in which one or more enterprises possess such significant power in a market to adjust prices or outputs or trading terms, without effective constraint from competitors or potential competitors.’ (Bull, et al., 2012). However, The Competition Act of Canada states, ‘The Abuse of a dominant position occurs when a dominant firm in a market or a dominant group of firms, engages in conduct that is intended to eliminate or discipline a competitor or to deter entry or expansion by competitors, with the result that competition is prevented or lessened substantially’. (Bureau de Concurrence Canada,

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The MyCC need to enhance the knowledge of the Competition Act 2010 to business so that they are aware of their legal rights and responsibilities. This can be done through carrying out workshop or sessions in companies that have a significant effect on the market. In this way the effectiveness of law will be enhanced and competition will become more disciplined.
 Suggestion No. 2
The Competition Act 2010 can include a complete yearly audit by the government in order to keep the dominant firms on track. It would make sure that the dominant firms are aware of the fact that they are being watched and any sort of activity that is against the act will lead to trouble.
 Suggestion No. 3
In order to maintain a healthy competition, the government can offer incentives to the inefficient firms. As a result the overall competitive nature of the market will stabilize and this in turn creates opportunities for every firm to exploit. It will create more employment opportunities for public. Also, it will allow companies that are working at smaller level to rise into large scale companies.

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