Malaysia revisits post-Asian financial crisis corporate takeover claims

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Malaysia revisits corporate takeovers

Highlights

In Parliament on 20 Oct 2026, Anwar said Multi-Purpose Holdings Bhd, Rashid Hussain Bhd and PhileoAllied Bhd had been forcibly taken over after the 1997/98 crisis.
The forced consolidation of local banks from 1999 to 2002 saw RHB shares taken over by Utama Banking Group, which was linked to the family of Tun Abdul Taib Mahmud.
Changes in MPHB’s corporate shareholdings and the disappearance of its original owner highlight major risks to governance and market confidence after financial-sector consolidation.

This article was translated from the original. Read the original version by our correspondent here.

Background to the allegations and past corporate episodes

As reported by The Edge Malaysia, Anwar said in response to a question in Parliament on 20 Oct 2026 that companies had also been forcibly taken from their original owners in the past, naming Multi-Purpose Holdings Bhd, Rashid Hussain Bhd and PhileoAllied Bhd as examples.

He did not name the individuals responsible, but said the actions were carried out by the "finance minister at the time". The position was held by the late Tun Daim Zainuddin from 1999 to 2001.

According to the report, all three groups had commercial banks in their respective portfolios and were subject to regulation by Bank Negara Malaysia and the Ministry of Finance. As listed companies, they also fell under the jurisdiction of the Securities Commission Malaysia.

The events Anwar referred to took place between 1999 and 2002, following the 1997/98 Asian financial crisis, which triggered major political tensions in Malaysia. The period followed Anwar’s dismissal as deputy prime minister on 2 Sept 1998 and Daim’s return as finance minister in January 1999.

Impact on bank consolidation and company ownership

In the post-crisis period, one of the government’s key measures was the forced consolidation of banks, ostensibly to strengthen the financial sector. Its implementation nevertheless remained controversial amid allegations that targets were selectively chosen from among those seen as close to Anwar.

In July 1999, six local banks were designated as anchor banks to take over other banks. The report says Arab Malaysian Bank, Hong Leong Bank, RHB Bank and PhileoAllied Bank were initially surprising omissions from the list, although RHB was later granted anchor bank status.

However, RHB’s controlling shareholder, Tan Sri Rashid Hussain, had to sell his stake to Utama Banking Group, which was linked to the family of the then Sarawak chief minister, the late Tun Abdul Taib Mahmud. In MPHB’s case, rapid changes in shareholdings took place at the group level during the bank consolidation process, involving assets including Magnum Corp Bhd and Bandar Raya Developments Bhd.

The report also says MPHB’s controlling shareholder, Lim Thian Kiat, nearly disappeared from the corporate scene after Anwar was dismissed and detained. New shareholders emerged in mid-1999, led by Datuk Seri Akbar Khan, whom Anwar named in Parliament as one of the beneficiaries of actions during that era.

The issue remains relevant to current debate because critics in Parliament said Anwar did not directly answer questions about today’s "corporate mafia" allegations, on the grounds that he could not comment on an ongoing investigation. His reference to those earlier episodes, however, highlights how financial-sector restructuring and changes in corporate ownership can have far-reaching effects on governance, regulation and market confidence.

In our earlier report on the impact of the 1MDB scandal on corporate governance, we highlighted how failures in controls, audits and checks and balances continue to fuel debate over who should be held accountable when institutions fail to function. The article also examined the focus on board accountability, the risks of political appointments, stronger whistleblower protections through legal amendments, and calls for internal auditors to take a more proactive role in detecting risks early.

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