XX-Malaysia-Jamaudin-Malaysian Policy.pptx
Transcript of XX-Malaysia-Jamaudin-Malaysian Policy.pptx
CURRENT POLICY AND LAWS GOVERNING
COUNTERFEIT & FRAUD IN MALAYSIA
Rosleezam Jamaudin
Malaysian Nuclear Agency
IAEA, Vienna, Austria
19-21 July 2016
� Malaysia categorically does not tolerate any dealings involving
counterfeiting, piracy and fraud.
� Malaysia was ranked 7th in Asia and 28th in the world in The International
Property Rights Index 2015
� People of different cultures have different reason to buy counterfiet
products.
� For consumers in developing countries like Malaysia, prices have always
been a major factor in making any decision.
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COUNTERFEIT PRODUCTS IN
MALAYSIAN MARKET
� Imitation products in Malaysian market : e.g. batteries, sauces, motor
oil, engine oil, toothpaste, detergent and canned food.
� Since 80% of Malaysian population are at the middle and lower level
income group, there are always demand for counterfeit product
� Pharmaceutical and automobile parts that are not genuine would
definitely pose a serious threat to public health & safety.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
Largest haul this yearBY AMANDA YEAP Saturday, 21 November 2015
•Perak Domestic Trade, Cooperatives and Consumerism Ministry made their largest seizure this year yet,
with almost RM500,000 worth of counterfeit goods seized.
Consumer Affairs, Entrepreneur Development, Cooperative, NGO and Civil Society Committee chairman
Datuk Samsudin Abu Hassan said the ministry raided five premises in Great World Centre on Jalan Raja
Permaisuri Bainun at 11am on Monday and seized 15,635 counterfeit phone accessories and sports
products.“From what I learned, the wholesale price of the fake Beats by Dr Dre headphones only costs around
RM25, but the suspects were found to be selling them for RM250. Their packaging is done in such aconvincing way, that even I was once fooled by these sellers,” he said.
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Wednesday, 11 November 2015
RM1.8mil fakes and pirated discs destroyed
Mohd Nawardi driving the steamroller over some of the pirated discs after the press conference in Bukit Minyak,
Seberang Prai.
RM1.8mil worth of goods including computers, illegal DVDs, counterfeit branded
goods and cooking oil were disposed by the Penang Domestic Trade,
Cooperatives and Consumerism Department.
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Premis jual barang tiruan diserbu – Premise selling electrical
products raided
IPOH - Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan (KPDNKK) negeri
menyerbu sebuah premis perniagaan di kawasan Perindustrian Silibin, di sini, semalam kerana didapati
memasarkan penghidup lampu kalimantang atau starter tiruan.
“Kita berjaya merampas 45, 600 starter lampu bernilai RM45, 600 dan hasil pemeriksaan mendapati barangan
terbabit adalah tiruan,” katanya pada sidang media di sini, semalam.
Sita alat ganti klon – Fake Automobile Parts
Confiscated
Mohd Khalis berkata, perbezaan ketara dapat dilihat termasuk warna tulisan jenama yang
berbeza, komponen di dalamnya dan ciri-ciri luaran alat ganti berkenaan
:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
LEGAL FRAMEWORK IN MALAYSIA
ON COUNTERFEITING AND FRAUD
� Malaysia has so far placed a priority on the eradication of this problem
due to the potential hazardous impact it would have on the
commercial trade sector, the seriousness of risk it would pose to the
safety of the public and the negative economic implication the nation
would portray to foreign investment.
� Counterfeiting and fraud be it in the form of documentations or goods
are considered crime in Malaysia
� Historically, the scope of counterfeiting in Malaysia was limited to
counterfeiting coin and Government Stamps provided under the
Malaysian Penal Code.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
LEGAL FRAMEWORK IN MALAYSIA
ON COUNTERFEITING AND FRAUD
� Any offences in the form of counterfeiting other than counterfeiting
coin and Government Stamps would fall under the crime of cheating
punishable under the Penal Code Act 574 which carries up to 5 years
imprisonment or fine of both if convicted.
415. Whoever by deceiving any person, whether or not such
deception was the sole or main inducement,—
(a)�
(b) intentionally induces the person so deceived to do or omit to
do anything which he would not do or omit to do if he were not
so deceived and which act or omission causes or is likely to
cause damage or harm to any person in body, mind, reputation,
or property, is said to “cheat”.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
LEGAL FRAMEWORK IN MALAYSIA
ON COUNTERFEITING AND FRAUD
New laws needed to be created to fill up the loopholes in the old laws.
� Trademarks Act 1976
� Trade Description Act 2011
� Copyright (Amendment) Act 2012
� Trade Description (Optical Disc Label) Order 2010
� Price Control (Labelling by Manufacturer, Importers, Producers or
Wholesalers) Order 1980
� Optical Disc Act 2000 and Optical Disc Regulations 2000
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Current procedures, which are in force, are believed to be
comprehensive and sufficient to prevent cases of counterfieting &
fraud.
� 1 Treasury Circular on Procedures of Procurement 2014 prescribes in
details how procurement should be done.
� It also provides diciplinary actions against a company in case of failure
to follow the guidelines which includes delivery of counterfeit product
and fraud.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Planning
� Budgeting
� Technical specification – is to be prepared by a panel. If the items
intended to be procured is not available locally, an approval needed to
be obtained from Committee of Imported Items.
� Tender Advertisement – approval needed from the Head of
Organisation before tender can be advertised. Tender Document can
only be supplied to those who can produce qualification certificate e.g.
Company’s registration and license classification which indicate scope
of work undertaken. Government procedures also stipulate that a
company must register with the commissioning entity in order to
participate in bidding. 12
:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Evaluation - Technical Committee will evaluate on technicalities. The
committee–comprises expert on the field, external representative from
technical organization. Price Committee will evaluate the ability of the
company to carry out the project, the past performance, the
experience and the company’s financial capacity.
� Selection – Decision will be made by a selection panel appointed by
Authority. Selection panel can only decide within the power conferred
by the Authority according to the range of prices of the particular item.
The higher the price of the item procured, the higher level of panel
selection needed to decide. Again to ensure neutrality and technical-
compliance, technical expert and external member would be
appointed as members of selection panel. 13
:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Preparing Contract – include term and obligation in which requirement
is clearly stated that the items supplied must be genuine.
“The contrator must make sure the item supplied is
genuine and of new production according to required
specification prescribed in the Appendix”
The word “genuine” defined in the definiton section in the contract as:
“ Genuine product means not fake product”
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
In cases where fake products are found, the Contract states that
“in the event, the Government finds the item so supplied is
not genuine or/and not of new production, the Government has
the right to keep or to reject the item. The Government may
subsequently terminate the contract. Notwithstanding
anything in this clause, the Contractor shall compensate the
Government the value of the item so supplied whether the
Government decides to or not to terminate the contract”.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Delivery– Delivery of the items can only be accepted by the authorized
person. This authorization is given in writing with prescription of roles
and responsibility attached with it. Among others the responsibility to
do thorough checking both physical and documentation related to it
which include certification of genuine items by manufacturer.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Testing and Commissioning process (T&C) – T&C can only be done
by competent person appointed by the Authority. Its mandatory to
provide certification on testing on required parameters issued by
accredated laboratory.
� Payment – payment can only be made after completing all steps
rigorously with all the necessary documents.
� Warranty- generally warranty period will last for 12 months during
which any instance of malfunction or defect on the item procured,
should be repaired or replaced at the company own expense.
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� The Government also give detail instruction how to deal with cases of
non-compliance on the part of companies. In the Treasury Circular
(know as 1PP) it stipulates that disciplinary action can be taken
against a company if it is found to be doing something against the
circular and that includes counterfeiting. The list of the act that
considered as non-compliance are as follows:
� Non-compliance to registration requirement
Falsifying document of registration
Allowing license to be used by a third party
Failure to update information on company profile
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� Breach of contract
◦ Falsifying documents
◦ Withdrawal after tender has been closed
◦ Refuse to accept offer after being awarded
◦ Abetting in price manipulation among tenderers
◦ Late delivery
◦ Failure to deliver
◦ Failure to deliver according to specification
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
MALAYSIA PROCUREMENT
PROCEDURE GUIDELINES
� The types of disciplinary action that can be taken
against companies are :◦ Warning
◦ Suspension from participating in Government projects
◦ Termination of company’s license
◦ Blacklisting companies’ shareholders
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:: PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI SELANGOR::
� Malaysia categorically does not tolerate any dealings involving
counterfeiting, piracy and fraud.
� Counterfeiting, piracy and fraudulent items in Malaysian market
revolve mainly around daily goods, electronic products and
automobile parts.
� No cases of counterfeiting and fraud has been reported related to
sophisticated equipments such as nuclear related items as the
market is very small.
� Malaysia Laws, regulation and procument guidelines are sufficient to
address cases of counterfiting, piracy and fraud
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