Takeovers not a crime, SC says amid ‘corporate mafia’ allegations
KUALA LUMPUR, April 22 — The Securities Commission Malaysia (SC) today said it has no authority to act on allegations of a “corporate mafia” if the issues fall outside securities laws.
Chairman Datuk Mohammad Faiz Azmi said the regulator’s role is limited to market and securities offences, not criminal conduct such as intimidation or extortion, business news outlet The Edge reported.
“Why do you think that’s my job? My job is securities laws,” he was quoted as saying in a media conference after releasing the SC’s 2025 annual report here.
Faiz said that corporate activities like share purchases or takeover bids are legal as long as they comply with established takeover regulations.
He said public perception of wrongdoing does not automatically mean an offence under securities law has been committed.
He also noted that reports involving threats or coercion are matters for the police, not the market regulator.
“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 was quoted as saying.
He said that any alleged intimidation or harassment linked to corporate activity should be investigated by enforcement agencies with criminal jurisdiction.
“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 said SC enforcement must be backed by evidence and proper investigation, not media speculation or complaints alone.
He said cases require detailed inquiry, including witness interviews and data analysis, before any action can be taken.
Allegations of a “corporate mafia” culture emerged after Bloomberg reported on the dubious share sales and company takeovers involving connected individuals and officials
These allegations have been denied by the MACC and its chief commissioner.
Faiz said regulatory action must also balance enforcement with fairness to avoid harming companies based on unproven claims.
He added that the SC is strengthening enforcement capabilities through improved technology and cooperation with other agencies, including Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission.
