Malaysia will form special committee to probe ‘corporate mafia’

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Allegations of a so-called corporate mafia colluding with anti-graft agency officials in Malaysia emerged in February.

KUALA LUMPUR – Malaysia will establish a special committee to investigate allegations that a network of businessmen colluded with anti-graft agency officials to oust company executives, and that body will publish a report within three months, Prime Minister Anwar Ibrahim said.

The committee will be chaired by the attorney-general and include the Malaysian Anti-Corruption Commission (MACC), the Royal Malaysia Police, the central bank and other agencies, Anwar said in Parliament in Kuala Lumpur on Oct 20.

The committee will be given three months to conduct an investigation and prepare a full report on corporate crime, he said.

“I asked that the report be made public,” Anwar said. “This will show nothing is being protected.”

Anwar’s announcement revives discussion of a topic that had gone largely silent for months. It comes after his party and coalition performed poorly in two state elections in 2026, putting pressure on him to bolster his anti-corruption credentials ahead of a general election that must be held by February 2028.

Allegations of a so-called corporate mafia colluding with anti-graft agency officials emerged in a Bloomberg News report in February, which the MACC denied.

The report – with another article focused on shareholdings of the agency’s former chief commissioner Azam Baki – led to protests in the country and calls for the establishment of a Royal Commission of Inquiry to investigate the allegations. Azam also denied wrongdoing.

In March, Anwar’s Cabinet ordered law enforcement agencies including the MACC to probe allegations involving the businessmen and the anti-graft agency. Home Minister Saifuddin Nasution Ismail said in June that the police had so far found no evidence of MACC involvement based on interviews with 58 people. 

The government also ordered a probe into Azam’s shareholdings.

The investigation was carried out by a three-person team of senior public servants led by the attorney-general. Findings were reported to the Cabinet, and the chief secretary to the government was asked in March to take the next steps, but the report itself was not made public and no next steps have been announced.

Communications Minister Fahmi Fadzil said in April that Malaysia’s government would make any findings freely available once both investigations are completed, saying it was a “commitment from the Cabinet, specifically from the Prime Minister”.

Malaysia’s King, Sultan Ibrahim Iskandar, also said in April that he would choose a new anti-graft chief. Azam retired in May when his term ended without being renewed. A former judge, Abdul Halim Aman, was appointed as his replacement.

The Democratic Action Party, a key group in Anwar’s ruling coalition, has led the calls for the establishment of a Royal Commission.

Four lawmakers have quit Anwar’s own party, most recently party treasurer Lee Chean Chung earlier in October. Lee said the government had not demonstrated a serious commitment to setting up an inquiry on the corporate mafia issue.

Former Anwar Cabinet ministers Rafizi Ramli and Nik Nazmi Nik Ahmad vacated their seats in 2025 and went on to form a party of their own – Bersama – while long-time MP Wong Chen joined them in August.

In his comments in Parliament on Oct 20, Anwar said enforcement activities against corporate crime have increased under his administration. He also noted that such crimes existed long before his government came to power. BLOOMBERG