Anwar rules out punishment for losses alone, flags fraud as key trigger

KUALA LUMPUR, 26 SEPTEMBER 2026 —

Prime Minister Datuk Seri Anwar Ibrahim said companies should not face penalties merely for making losses, but that fraud, abuse of power, or theft—terms he described as "sakau"—would warrant action.

Speaking at Universiti Teknologi MARA (UiTM) in Shah Alam today, Anwar clarified that corporate losses alone were not grounds for punishment, but that misconduct or illegal activities would require investigation. "We don’t punish people because a company makes losses. We punish because there is fraud, abuse of power, or theft—not because of losses," he said during a question-and-answer session with UiTM alumni and students.

Anwar’s remarks came amid scrutiny over UiTM Holdings Sdn Bhd, which an audience member claimed had accumulated over RM100 million in unresolved losses. The prime minister cautioned against premature judgment, urging a thorough examination of the institution’s financial position before taking action.

"Now study UiTM Holdings, don’t punish it now," Anwar said, adding that any weaknesses should first be identified and addressed, but that abuses—if found—would require corrective measures.

Background: Corporate governance under scrutiny Anwar’s stance reflects broader debates on corporate accountability in Malaysia, particularly in state-linked entities where financial mismanagement has drawn public and regulatory attention. Earlier this year, the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH)—released after a delay—sparked controversy over its timing and alleged political motivations.

Anwar dismissed suggestions that the TH report’s release was an act of "dendam" (revenge), stating that decisions on investigations, prosecutions, and judgments rested with enforcement agencies, including the Malaysian Anti-Corruption Commission (MACC), the Inland Revenue Board (LHDN), and the courts.

"I don’t know who is being investigated, whether they will be charged, or whether action will be taken," he said. "The investigation is handled by the relevant authorities—the police, the MACC, the attorney general, and the judges."

UiTM Holdings under the microscope The prime minister’s comments on UiTM Holdings came after an audience member pressed for a report on the entity’s financial health. Anwar indicated that the Higher Education Ministry would be involved in the review, with cooperation from the Prime Minister’s Department.

UiTM Holdings, a subsidiary of UiTM, has faced allegations of financial irregularities, including unaddressed losses exceeding RM100 million, according to the questioner. Anwar’s call for a structured assessment suggests the government may be preparing a deeper audit before taking disciplinary action.

Broader implications for state-linked entities Anwar’s emphasis on fraud and misconduct aligns with his stated focus on governance reforms, particularly in Bumiputera-focused agencies like Felda, which has also come under scrutiny. The prime minister has previously stressed that such entities must set ethical standards for both Muslim and broader society.

"I am particularly strict about governance in Bumiputera agencies," Anwar said. "They must lead by example—not just for Muslims, but for the entire nation."

Market and regulatory reaction While Anwar’s remarks do not directly impact financial markets, they signal a shift in how corporate losses are assessed—distinguishing between operational challenges and deliberate misconduct. Investors and regulators will likely watch closely as UiTM Holdings undergoes review, particularly if further irregularities emerge.

The Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) may also take note, as Anwar’s stance could influence enforcement actions against state-linked firms with financial weaknesses.

Outlook: Awaiting UiTM Holdings’ review With Anwar calling for a structured examination of UiTM Holdings, the next steps will depend on the findings of the Higher Education Ministry’s assessment. If fraud or mismanagement is confirmed, disciplinary measures—including leadership changes—could follow.

For now, the prime minister’s message is clear: losses alone will not trigger penalties, but proven misconduct will. The focus remains on transparency and accountability, particularly in institutions entrusted with public funds.