Ministry of Home Affairs leaves door open to RCI into corporate mafia allegations in Malaysia

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Corporate mafia RCI investigation

Highlights

The Ministry of Home Affairs is open to establishing a Royal Commission of Inquiry (RCI) into corporate mafia allegations if there are grounds and a need for further investigation.
As of 25 Sept, police had recorded statements from 70 individuals and frozen/seized selected assets worth approximately RM323.59 million, along with RM85.62 million in 404 bank accounts.
The Op Viking investigation paper was opened on 14 Oct 2025 under the AMLA, with implications for capital market enforcement and corporate governance in Malaysia.

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

Scope of the investigation and conditions for establishing an RCI

The Edge Malaysia reported that the Ministry of Home Affairs, in a written parliamentary reply published on the Parliament portal, said any proposal to establish a Royal Commission of Inquiry must be assessed based on the need for further investigation and the specific scope of the matters to be examined.

The ministry said the government does not rule out this step if there are clear grounds and a need for a more comprehensive investigation, supported by solid factual evidence. It also stressed that allegations with merit would continue to be examined transparently and that appropriate action would be taken in accordance with the law, regardless of the position or background of those involved.

The reply was given to Khoo Poay Tiong, Member of Parliament for Kota Melaka, who asked for an update on the investigation into the corporate mafia allegations and whether individuals believed to be the main perpetrators would be brought to court. He also asked whether the government was prepared to establish an RCI to address the issue.

Operational progress and enforcement implications

According to the ministry, as of 25 Sept, police had recorded statements from 70 individuals and frozen or seized assets comprising eight properties, 11 vehicles, 417 Central Depository System accounts, and 70 share trading accounts involving approximately RM323.59 million.

A total of 404 bank accounts involving approximately RM85.62 million were also frozen or seized. The ministry said the Royal Malaysia Police launched Op Viking through its Anti-Money Laundering Investigation Team under the Inspector-General of Police Secretariat in Bukit Aman, following information and intelligence related to money laundering activities.

An investigation paper was opened on 14 Oct 2025 under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. The development shows that the investigation now involves financial trails and asset ownership, which could have implications for capital market enforcement and corporate governance in Malaysia.

In our earlier article on the impact of the 1MDB scandal on governance debates corporate, we discussed how failures in controls, audits and checks and balances shifted attention to board accountability and political appointment issues. We also examined stronger whistleblower protections through amendments to the Whistleblower Protection Act 2010 in 2025, as well as calls for internal auditors to take a more proactive approach to detecting risks early using data.

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