KUALA LUMPUR (April 22): Malaysia’s capital market regulator Securities Commission (SC) said it cannot act on “corporate mafia” allegations if they fall outside securities laws.
Its chairman Datuk Mohammad Faiz Azmi said most issues reported in the media involve criminal offences like intimidation and extortion, not violations of securities regulations.
“SC does not regulate criminal intimidation and extortion. I don’t regulate murder and manslaughter,” Faiz told reporters after releasing its 2025 annual report.
“Why do you think that’s my job? My job is securities laws,” he said.
While corporate takeovers or share acquisitions may attract public scrutiny, they are not inherently illegal as long as they comply with existing takeover rules, he added.
“People are open to buying and selling their shares, and it’s not a crime to want to take over a company, provided they follow our takeover rules,” Faiz said.
However, he noted that if such activities involve harassment or coercion, these would fall under the jurisdiction of law enforcement agencies.
“When intimidation and harassment is involved, these are matters really for the police to investigate, because they have wider powers and stronger penalties,” he added.
Faiz also added that any enforcement action by the SC must be grounded in evidence and due process, rather than speculation or media reports. He explained that building a case under securities law requires meeting a high legal threshold.
“We have to establish the offence beyond reasonable doubt. That means gathering evidence, interviewing witnesses, analysing data and building a case — and that takes time,” he said. “I don’t prosecute on rumours. I don’t even prosecute on complaints — I prosecute based on investigations.”
The “corporate mafia” allegations surfaced in a Bloomberg article titled “Who’s Watching Malaysia’s Anti-Corruption Watchdog?”, which raised concerns over alleged takeovers of companies listed on Bursa Malaysia in collusion with high-ranking officials from the Malaysian Anti-Corruption Commission (MACC).
The report alleged that executives and shareholders were pressured through intimidation to resign or sell their shares at heavily discounted prices to a group of connected businessmen.
MACC and its chief commissioner Tan Sri Azam Baki have denied the allegations.
Faiz also reiterated that there are legal constraints under current law that prevent the chairman from commenting on ongoing investigations to protect both the integrity of the process and the presumption of innocence.
“If I make a comment about a company now, it will be reported and remain permanently. That could unfairly affect its ability to operate,” he said, noting that companies sometimes later require “letters of innocence” to restore credibility.
Faiz added that the regulator is strengthening its enforcement by improving prosecution rates, enhancing technology use, and working more closely with agencies such as Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission.
“We do take our regulatory mandate very seriously, but you have to judge us by our actions, not just our words,” he said.