Relating to our earlier announcement dated 23 February 2017 on the above matter, Lonpac Insurance Bhd (Lonpac), a wholly-owned subsidiary of LPI Capital Bhd (LPI), has on 25 September 2020 received a Notice of Finding of An Infringement by The Malaysia Competition Commission (MyCC) under Section 40 of the Competition Act 2010.

MyCC has determined that Lonpac together with 21 other members of Persatuan Insurans Am Malaysia (PIAM) have infringed Section 4 prohibition by participating in an agreement which has, as its object, the prevention, restriction or distortion in relation to the market of motor spare parts trade and labour charges for PIAM Approved Repairers Scheme.

MyCC has also decided to impose a financial penalty of RM5,914,779.57 on Lonpac for the alleged infringement.

Lonpac believes that it has always conducted its business in full compliance with all relevant laws and regulations and will consult its lawyers on its next course of action.

The financial penalty imposed on Lonpac is not expected to have any material impact on LPI’s financial performance for FY2020.