Post Budget 2027: Can Growth Outrun Subsidy?

This article is a continuation to the earlier article "Budget 2027: Can Growth Outrun Subsidy" made before the Budget was presented. 

The earlier framing was on growth, subsidies and assistance, and fiscal consolidation as competing demands on fiscal policy. The question was whether the quality and composition of growth can create sufficient fiscal space to sustain both development and social protection. The question remain relevant but post budget, the emphasis should shift to the evidence available after its presentation.

Budget 2027 has attracted the familiar charge of being an “election budget”. The RM510 billion headline, expanded assistance and continued spending commitments have fuelled concerns that political considerations may be taking precedence over fiscal discipline. With national debt already around RM1.4 trillion, the question is whether the government is spending to strengthen Malaysia’s economic foundations or to deliver immediate relief while postponing difficult fiscal choices.

Yet the election-budget argument should not rest on the size of the headline alone. The RM510 billion figure includes investments by government-linked investment companies (GLICs), public-private partnerships and other public entities; it is not equivalent to federal expenditure or the amount financed through borrowing. The more substantive test is whether the additional commitments are matched by credible revenue, productive investment and a sustainable path towards deficit reduction.

A budget can legitimately protect households during an economic squeeze. But when immediate benefits expand faster than the economy’s capacity to finance them, relief today risks becoming a liability tomorrow. The danger is not assistance itself, but the possibility that recurring commitments become politically difficult to reform even when fiscal conditions deteriorate.

Growth Must Deliver More Than Numbers

Malaysia enters 2027 with a projected growth rate of 4.2% to 5.2%. Federal revenue is forecast at RM380.8 billion against expenditure of RM459.8 billion, with the fiscal deficit targeted to narrow to 3.3% of GDP. These projections suggest continued consolidation, but they also expose the central tension: the government must finance development and social protection while reducing its reliance on borrowing.

The test of an election budget is therefore not whether it spends more, but what that spending achieves. Investments in advanced manufacturing, semiconductors, digital technology and industrial upgrading could strengthen productive capacity. GEAR-uP and the New Industrial Master Plan 2030 provide channels to mobilise capital beyond conventional federal expenditure.

However, announcements and allocations are not economic outcomes. If investment fails to generate domestic value added, skilled employment, stronger local suppliers and higher productivity, the headline may grow without a corresponding expansion in the government’s future revenue base. A credible growth strategy must demonstrate how investment translates into durable economic returns.

Subsidies: Protection or Political Liability?

The global energy shock has complicated the fiscal outlook. Fuel subsidies are estimated to have reached RM40 billion in 2026, while the government continues to provide targeted household assistance. The RM16 billion allocation for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah in 2027 reflects the importance placed on protecting purchasing power.

Such support is not inherently populist or economically wasteful. Targeted transfers can protect vulnerable households and sustain consumption during periods of rising costs. But subsidies and cash assistance become fiscally problematic when their expansion is not matched by sustainable revenue or when they crowd out investment that could raise future incomes.

This is where the election-budget criticism deserves scrutiny. Immediate benefits are visible and politically tangible; productivity gains, tax-base expansion and fiscal resilience take longer to materialise. The temptation is to prioritise what can be delivered now over reforms whose benefits emerge beyond the electoral cycle. Whether Budget 2027 falls into that pattern must be judged by its financing, implementation and results—not by its timing alone.

The Missing Test: Who Pays Tomorrow?

The government projects federal revenue of RM380.8 billion against expenditure of RM459.8 billion. The financing gap makes revenue reform and borrowing discipline indispensable. Better tax compliance, reduced leakages and a broader revenue base must complement economic growth. Higher petroleum receipts may provide temporary relief, but elevated oil prices can also increase subsidy costs and inflationary pressures.

Nor does the RM510 billion headline automatically establish fiscal irresponsibility. GLIC and private-sector investments can mobilise capital without becoming equivalent federal spending. Nevertheless, their economic returns, risks and potential future public obligations require transparency.

The more difficult question is whether the government is prepared to make the structural choices necessary to sustain its commitments including improving revenue collection, directing capital towards productive activity and ensuring that assistance remains affordable. Fiscal consolidation cannot depend indefinitely on optimistic growth assumptions or favourable commodity prices.

Beyond the Election-Budget Label

Ultimately, the distinction between a responsible social budget and an election-oriented spending exercise lies in what remains after the immediate benefits have been delivered. Does Malaysia emerge with stronger productive capacity, higher incomes and a more dependable revenue base—or with recurring commitments that constrain future governments?

Budget 2027 should be assessed against that standard. Protecting households and pursuing fiscal consolidation are not mutually exclusive, but reconciling them requires more than expanding allocations and projecting growth. It requires evidence that expenditure today will enlarge the resources available tomorrow.

The real election-budget test is not how much the government gives before an election, but whether the economy can sustain those commitments after the election is over. Can growth outrun subsidy? 

Only if the Budget converts immediate spending into lasting productive capacity, rather than leaving future taxpayers to finance promises that today’s growth cannot support.

Goodbye Yellow Brick Road

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Budget 2027: Can Growth Outrun Subsidy?

A pre-Budget framework for assessing growth, fiscal discipline and the cost of protecting households.

The arithmetic facing Budget 2027, to be tabled today, is simple but uncomfortable. Malaysia’s economy grew by 5.7% in the first half of 2026, while the government continues to grapple with high public debt and an unexpectedly large fuel subsidy bill.

Yet there is a reason for cautious optimism. The World Bank has raised its forecast for Malaysia’s 2026 economic growth from 4.4% to 5.1%, reflecting stronger-than-expected performance. This gives the government some breathing space. The question is whether stronger growth can help restore fiscal discipline without weakening support for households.

Three competing priorities define this Budget: growth, debt consolidation and the cost of living.

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Budget Day? I’ll Read About It Tomorrow

I confess. I have stopped watching the live Budget presentation.

Not because I have lost interest in the country's finances. Quite the opposite. I have probably become more interested in what lies behind the numbers. But after years of watching Budget Day unfold, I have discovered a more efficient way of doing it: read the newspaper the next morning.

By then, the numbers have been digested, the important announcements separated from the decorative language, and someone has usually produced a useful table telling me what the Budget actually means for my pocket.

The Government's version will have been delivered. The coalition MPs will have praised it. The Opposition will have criticised it. Somewhere in between, someone will have discovered a number that appears to have been overlooked, misrepresented or interpreted differently.

And then comes the familiar political choreography.

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When Bankers Become Power Brokers

The Uncanny Parallel Between J.P. Morgan and Tun Daim

History occasionally produces two men separated by an ocean, a century and vastly different political systems, yet connected by an intriguing similarity: both understood that the power of banking extended far beyond money.

J. Pierpont Morgan was born in 1837, when the United States was still transforming from an agrarian society into an industrial power. Tun Daim Zainuddin was born exactly a century later, when Malaya was still a developing colonial economy. Yet both would eventually operate at moments when their countries were undergoing profound economic transformation.

The comparison is not to suggest that Daim was simply a Malaysian J.P. Morgan. Their circumstances were fundamentally different. Morgan was a private financier whose influence grew through Wall Street. Daim, although a businessman with substantial banking interests, eventually became Finance Minister and therefore possessed something Morgan never did have direct access to the machinery of government.

That difference may be precisely what makes the comparison so fascinating.

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What Modern Economics Can Learn from Prophet Yusuf

Khalilah Dato' Mohd Talha's reflection, Was Prophet Yusuf the World's First Economist?, is more than an interesting observation about a Qur'anic story. It raises a question that modern economics may have become uncomfortable answering: What is an economy actually for?

Prophet Yusuf's economic wisdom was remarkably simple. When abundance was forecast, he did not ask how much could be consumed, how quickly wealth could be accumulated or how much return could be extracted. He asked how today's abundance could be preserved so that people could survive tomorrow's scarcity.

Somewhere along the evolution of modern capitalism, that priority appears to have been reversed.

In the Hebrew Bible/Old Testament and the Christian Bible, Prophet Yusuf in the Qur'an is the same figure known as Joseph. 

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All the tough talk at UNGA, yet the market takes a different cue

 

The theme of The Edge HSBC Pre Budget 2027 Roundtable discussion was the challenges to the fiscal consolidation coming from external uncertainties. Read HERE.  

After the display of power, defiance and political legitimacy from the three appearances together at the UN General Assembly — US President Donald Trump on September 22, Iranian President Masoud Pezeshkian on September 23, and Israel Prime Minister Benjamin Netanyahu on September 24, 2026, followed by a mass walkout by 73 countries representatives, one would not have expected market to react as it did last night.

Following the UN General Assembly spectacle to project an image of political strength and certainty, the oil market told a different story. 

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Beyond the Debt Blame Game: Malaysia Needs an Honest Conversation

The national debt is approaching RM1.4 trillion. Yes, it is large. Yes, it deserves scrutiny. 

But Malaysia needs something more useful than another round of political arithmetic over which Prime Minister accumulated more debt.

Early this year, the Prime Minister's remark that there would be no new borrowing has been seized upon by his critics as evidence of another broken promise. It may well have been an unfortunate slip of the tongue, particularly when made in the heat of a political rally. 

But it should not become a substitute for discussing the much more important question: What is Malaysia actually doing about its debt trajectory?

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The Middle East Shock Returns: What It Means for Malaysia and Budget 2027

For a brief moment, Malaysia appeared to have gained some breathing space on the fuel subsidy front.

The feared explosion in the government's fuel subsidy bill did not materialise to the extent initially feared. The move towards targeted subsidies, particularly through BUDI95, gave the government greater control over its fiscal exposure while keeping subsidised RON95 at RM1.99 a litre.

But the latest developments in the Middle East are beginning to test that resilience.

The renewed confrontation involving Iran, the continuing uncertainty surrounding the Strait of Hormuz, the Houthi advance around Yemen's Red Sea coast and the temporary closure of Saudi Arabia's East-West oil pipeline have created a much more serious threat to global oil supplies. 

Brent crude has moved back above US$100 a barrel as markets increasingly price in the possibility of actual physical disruption rather than merely a geopolitical risk premium.

For Malaysia, the timing could hardly be more sensitive.

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El Niño Is Coming: What Malaysia Should Expect

 

Do you realised that lately, in the afternoon, the car air-conditioning does not seem to work? The air-conditioner may be working perfectly in the morning and evening, yet by mid-afternoon the car becomes unbearably hot and the cooling seems inadequate.

There may be nothing wrong with the air-conditioning. The problem is the extraordinary heat load outside. What we are beginning to experience is the early manifestation of a much larger weather phenomenon: El Niño.

El Niño is not simply “hot weather”. It is a disruption of the normal ocean-atmosphere system in the tropical Pacific that changes rainfall, temperature and atmospheric circulation over a huge area. 

The World Meteorological Organization now says the current El Niño is firmly established, is expected to strengthen to a very strong event, and has an almost 100% probability of continuing through February 2027.

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The Storm Has Not Passed

For many Malaysians, the recent decision by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim to restore the monthly BUDI95 petrol entitlement to 300 litres will come as welcome news. The diesel entitlement has also been adjusted, providing some additional breathing space to households and businesses that depend heavily on their vehicles.

After months of discussion about subsidy rationalisation, the decision is understandable. It reflects a recognition that while targeted subsidy reform remains necessary, it must also take account of the realities faced by Malaysians, particularly those who drive long distances or depend on vehicles for their livelihoods.

More importantly, it suggests that the Government now has greater confidence in managing fuel consumption, enforcement and the fiscal implications of subsidies.

That is reassuring. But there is another message that Malaysians should not overlook. A more manageable domestic fuel situation does not mean that the international environment has become predictable. The pressure has merely become less immediate.

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Incorporating GST Features into SST

The recent report that Prime Minister and Finance Minister Dato’ Seri Anwar Ibrahim’s ministry is studying the possibility of incorporating some features of the Goods and Services Tax (GST) into Malaysia’s existing Sales and Service Tax (SST) has reopened an old and highly sensitive debate.

GST was abolished in August 2018. It had become one of the major political issues used by Pakatan Harapan (PH), together with the 1MDB controversy, in the campaign that brought down the Barisan Nasional government.

Yet GST has never really disappeared from public discussion. Supporters continue to argue that it is a more efficient and transparent tax system, while opponents remember the impact they associated with GST on the prices of everyday goods.

Recent changes have made the debate even more interesting. The government has increased SST rates and expanded its scope, while introducing other forms of taxation. The implementation of e-Invoicing has also prompted some critics to describe it as a “backdoor GST”.

There is therefore value in putting the politics aside for a moment and understanding what GST and SST actually do—and whether some of the strengths of GST can be incorporated into SST without bringing back the entire GST system.

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Never-ending Problem of Malaysian Government Agencies and GLCs: Beyond “Sakau”

 

Malaysia has experienced a long succession of controversies involving government agencies, statutory bodies and government-linked companies (GLCs). Tabung Haji, FELDA, FGV, Khazanah Nasional, MAS, LTAT, MARA and, most dramatically, 1MDB have at various times been associated with financial losses, questionable investments, governance failures or allegations of misconduct.

The political response is often predictable. The latest scandal becomes evidence that the previous government “sakau” — plundered — public institutions. There may indeed be cases involving corruption, abuse of power, fraud or criminal misconduct, and such cases must be investigated and prosecuted. But reducing every financial loss or failed investment to “sakau” is neither accurate nor useful.

The deeper problem is more serious. Malaysia appears to have a recurring institutional failure in the governance, management and oversight of government agencies and GLCs. The country has had numerous audits, investigations, parliamentary inquiries and restructuring exercises, yet similar problems continue to reappear.

The question therefore should not merely be, “Who stole the money?” It should also be, “Why was the system unable to prevent the loss, detect the problem early and ensure that the same mistake would not happen again?”

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Has Pakatan Harapan Forgotten How to Campaign as a Government?

If elections were decided solely by who could produce the sharpest slogan, the wittiest social media post or the loudest political jab, campaigning would be much easier. Fortunately—or unfortunately for political strategists—voters usually expect something more.

As Johor heads towards another state election, one curious feature of Pakatan Harapan's (PH) campaign is that it often resembles the campaign of a coalition trying to score political points rather than one preparing to govern one of Malaysia's most economically important states.

Instead of projecting confidence as a government-in-waiting, much of PH's campaign appears occupied by a series of political narratives that generate headlines but contribute relatively little to answering the question voters ultimately care about: Why should PH govern Johor?

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LNG Price Revision Reflects Market Reality More Than Politics

The latest revision to Malaysia’s LNG and related domestic gas pricing structure has inevitably attracted political interpretation, especially given its timing ahead of two upcoming state elections. Yet a closer reading suggests the adjustment is driven more by changing market fundamentals and supply confidence than short-term electoral calculations.

Over recent months, global energy markets have moved in a direction very different from what many had feared earlier in the year. Despite heightened geopolitical rhetoric surrounding Iran and renewed pressure from Washington, markets have remained notably restrained. Political statements alone have not translated into sustained supply disruptions.

Oil prices illustrate this shift clearly. After briefly moving above US$80 per barrel amid concerns over conflict escalation and supply interruption, benchmark prices softened and returned to around the mid-US$70 range. 

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From Efficiency to Resilience

For decades, economic crises were managed through a familiar playbook. Growth slows. Governments spend more. Subsidies are expanded. Assistance is distributed. Borrowing increases temporarily until conditions improve.

This approach made sense in an era where crises were cyclical and demand-driven. When businesses stopped investing and consumers stopped spending, governments stepped in to stimulate the economy and restart growth.

But the world that Malaysia operates in today is increasingly different. Many of today’s disruptions originate not from insufficient demand, but from supply constraints — energy volatility, disrupted logistics, geopolitical competition, climate uncertainty, demographic change and rising fiscal limitations. Under these conditions, conventional stimulus becomes less effective. Governments cannot create more oil, shorten disrupted shipping routes or eliminate geopolitical uncertainty through spending alone.

Malaysia therefore faces a difficult but increasingly unavoidable reality: the country cannot continue to subsidise, spend and borrow its way out of every economic shock.

Against this backdrop, two recent policy pieces stand out — Tan Sri Hassan Marican’s interview with Bernama and Finance Minister II Datuk Seri Amir Hamzah Azizan’s column in The Edge. Read together, they suggest the emergence of a broader national economic narrative.

One diagnoses the challenge. The other outlines how Malaysia may respond.

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The Politics of Cheap Fuel and Malaysia’s Fiscal Reality

It is unfortunate that Malaysia’s political parties remain reluctant to openly discuss the enormous RM60 billion dent in government finances caused by the fuel subsidy burden following the Iran war and the disruption of the Strait of Hormuz. Yet this is precisely the conversation the country urgently needs.

As speculation grows that the 16th General Election may be approaching sooner rather than later, political survival appears to be taking precedence over honest policy debate. Difficult truths are being avoided because no political coalition wants to be seen as the government that raises fuel prices or reduces subsidies. 

But regardless of whether the current administration survives or a new government eventually takes over Putrajaya, the reality remains unchanged: sooner or later, politicians will have to confront the fiscal consequences. There is simply no escaping arithmetic.

Instead, much of the political debate has drifted toward populism. Parties within the ruling coalition continue defending the inclusion of T20 households in the Budi subsidy framework, despite the uncomfortable fact that the top 20% income group reportedly enjoys around 42% of total fuel subsidy benefits. 

In simple terms, Malaysia is still spending billions subsidising fuel consumption for many, who are financially capable of paying market prices.

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From War to Wallet: Facing Up To The Changing Global Reality

The failure of ceasefire negotiations between the United States and Iran in Islamabad may appear, at first glance, like yet another distant diplomatic breakdown. But this is not a remote geopolitical episode Malaysians can afford to ignore. 

The likelihood of escalation is real, and with it, the continued disruption—or even closure—of the Strait of Hormuz, one of the world’s most critical oil arteries. When that artery tightens, the shock does not remain in the Middle East. It travels—swiftly and relentlessly—into global markets, national budgets, and ultimately, the daily lives of ordinary Malaysians.

This is why Anwar Ibrahim is right to admit that Malaysia is already in a crisis. Not a crisis of panic or collapse, but one of creeping economic pressure—the kind that builds quietly until it becomes unavoidable.

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Elementary, My Dear Malaysia: Step Back and The War in Iran will be seen as Opportunity

In the detective stories of Arthur Conan Doyle, the brilliant sleuth Sherlock Holmes often solved complex puzzles by observing what others overlooked. After presenting his reasoning, he would turn to his companion Dr. John Watson and remark with quiet confidence: “Elementary, my dear Watson.”

The phrase carries a simple lesson. What seems mysterious becomes clearer when one steps back and examines the larger picture. That perspective is worth remembering when reflecting on Malaysia’s national conversation today.

Recently, Wong Chun Wai wrote an insightful column arguing that the “noise” of domestic politics often drowns out Malaysia’s real story. Scroll through social media and one might think the country is perpetually in crisis, with political quarrels, racial tensions and pessimistic commentary dominating the narrative. 

Yet, as Wong pointed out, the economic data tell a different story. Malaysia has recorded strong investment inflows, stable unemployment and improving financial reserves, suggesting a nation that is gradually regaining stability rather than collapsing into failure.

Wong’s point is an important one. A society that constantly tells itself it is failing risks eroding its own confidence. But there is another dimension to the story that deserves equal attention. The Malaysian debate often focuses almost entirely on domestic issues, when in fact the forces shaping our future may lie far beyond our borders.

To understand Malaysia’s prospects today, we must look not only inward but outward—to the shifting currents of global geopolitics.

One such current is the escalating conflict involving the US, Israel and Iran. Wars in the Middle East are rarely isolated regional events. They ripple across global energy markets, trade routes and financial systems. Even countries thousands of kilometres away feel the economic aftershocks through oil prices, inflation and supply chains.

For many Malaysians, such news naturally raises anxiety. War suggests instability and uncertainty. Yet history shows that geopolitical disruptions often reshape economic geography in unexpected ways.

In moments of global turbulence, investors and businesses search for stability. Capital flows away from conflict zones and toward regions perceived as secure, dynamic and economically promising.

This is where Asia—and particularly Southeast Asia—enters the story.

Consider the demographic reality. The ten member states of ASEAN together represent a population of roughly 670 million people—already larger than that of the United States. Expand the lens slightly to include nearby and part of neighbouring Asian economies such as China, India, Bangladesh, etc and the population base rises to well over two billion people.

Population alone does not guarantee prosperity, but it does create scale. Markets grow where people live, work and consume.

By contrast, much of Western Europe is facing demographic stagnation. Fertility rates in many countries have fallen well below replacement levels, and ageing populations are becoming a structural economic challenge. 

Even in East Asia, countries such as Japan and South Korea are experiencing declining birth rates, while China has begun to confront the prospect of a shrinking population.

Many countries in South and Southeast Asia, however, still maintain relatively youthful demographics. Their expanding labour forces and rising middle classes are creating new demand for housing, infrastructure, technology and consumer goods.

For global businesses navigating an uncertain world, such conditions are attractive.

This demographic momentum is one reason multinational corporations have increasingly diversified their supply chains across Asia. The shift began years ago, accelerated during the pandemic and continues amid geopolitical tensions between major powers.

A prolonged conflict in the Middle East could reinforce that trend.

Energy disruptions and geopolitical risk may encourage companies to expand manufacturing and logistics networks in regions perceived as stable and strategically located. Southeast Asia—situated between China, India and the Pacific economies—occupies a crucial position along the Indo-Pacific trade corridor.

Within this broader landscape, Malaysia is not a peripheral observer. It sits near the centre of one of the world’s most dynamic regions. The country possesses several structural advantages: a diversified economy, strong electronics manufacturing, growing digital infrastructure and significant exports of commodities such as palm oil and energy. 

During periods of high global oil prices, Malaysia’s resource sector can even benefit from improved export earnings.

More importantly, Malaysia enjoys a reputation as a relatively moderate and diplomatically balanced nation. It maintains constructive relations with major powers while remaining firmly embedded within ASEAN’s cooperative framework.

In a world increasingly shaped by geopolitical rivalries, such balance can become a strategic asset.

Of course, none of this means Malaysia is immune to global shocks. Higher energy prices can increase the cost of living, and disruptions in global trade can affect export demand. The world is entering a period of heightened uncertainty, and no country can escape its effects entirely.

Yet it is equally important not to underestimate Malaysia’s resilience.

Over the past decades the nation has navigated financial crises, political transitions and global pandemics. Each time, it has adapted and rebuilt. The country’s multicultural society, strategic geography and economic diversity provide a foundation that many nations would envy.

This is why the national conversation matters. If Malaysians allow pessimism and political quarrels to dominate public discourse, the country risks missing the larger strategic opportunity unfolding around it. A nation that constantly doubts itself will struggle to recognise the advantages it possesses.

What Malaysia needs, therefore, is not merely political stability but leadership with an international outlook. In today’s interconnected world, domestic policy cannot be separated from global dynamics. Decisions about trade, technology, energy and investment must be made with an awareness of shifting geopolitical realities.

Leaders must be able to read the international landscape, anticipate economic transformations and position Malaysia accordingly. That requires a broader mindset—not just among policymakers, but among citizens as well.

The rise of Asia as the centre of demographic and economic gravity is one of the defining trends of the twenty-first century. The region’s billions of people represent the markets, workforces and innovators that will drive global growth in the decades ahead.

Seen from this perspective, the current turbulence in the Middle East may ultimately reinforce Asia’s importance in the global economy.

Which brings us back to Sherlock Holmes. When Holmes solved a mystery, he often reminded Watson that the answer was obvious once the clues were properly assembled. Perhaps the same applies to Malaysia’s future.

Amid the noise of domestic debates and the anxieties of global conflict, the broader picture is gradually coming into focus. The world economy is shifting eastward, and Southeast Asia stands at the crossroads of that transformation.

For Malaysia, the challenge is not merely to weather global storms but to recognise the opportunities that those storms may bring. 

Viewed from that wider vantage point, the conclusion may indeed be elementary. The real story of Malaysia is not one of decline, but of a nation positioned within one of the most promising regions of the world—provided it has the confidence and leadership to see the bigger picture.

Goodbye Yellow Brick Road

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MBA lesson on leadership and power that still rings true today

When I was doing my MBA some years ago, there was one local lecturer everyone paid close attention to his words. 

Mr Lai was not your typical academic. He was a hands-on corporate man  — then a COO in one of the key subsidiary companies of Genting Group. He had war stories from boardrooms, high level  negotiations, crisis meetings and corporate planning. He did not teach from slides. He taught from scars.

One afternoon, during a class on strategic management, someone asked whether a brilliant strategy was enough to guarantee success. Mr Lai smiled, paused, and said something that has stayed with me ever since:

“The most critical stage of any strategic plan is implementation. And the most critical decision in implementation is choosing the right CEO.”

He explained that once the board approves a strategy, everything depends on the clarity of the chief executive’s role. 

The CEO must know his mandate. He must know what he can and cannot do. His KPIs must be clear. There must be no duplication of authority, no shadow decision-makers, no conflict of interest that paralyses execution.

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"Teleng", Corporate Mafia targetted by Bloomberg

The Malaysian Anti-Corruption Commission (MACC) was created to champion integrity and combat graft in public and private sectors. 

Yet a Bloomberg investigation published on February 11, 2026 alleges that elements within MACC may have been complicit in helping certain business figures exert undue influence over corporate control, using intimidation and legal leverage to pressure executives into selling or surrendering their shareholdings.

This controversy echoes an earlier episode that first surfaced in The Corporate Secret blog throughout 2023, centered around Dato’ Sri Andy Lim Kok Han, widely known in corporate and criminal circles as Dato’ Teleng. 

In that saga, Lim emerged as a substantial shareholder in GIIB Holdings Bhd, later being implicated in a highly publicized altercation where he allegedly brandished a pistol and issued threats to then-CEO Tai Boon Wee to force board appointments — an incident that spurred police reports and raised questions about the intersection of enforcement agencies, shareholder activism and corporate power struggles in Malaysia.

Together, these narratives paint a troubling picture of how enforcement mechanisms, corporate ambition, and allegations of impropriety can intersect, challenging perceptions of transparency and fairness in both regulatory institutions and the boardroom.

Yesterday's Bloomberg news on Tan Sri Azam Baki is but mere teaser to what unfolded today. His short-term holding in Velocity Capital Berhad and Awanbiru Berhad is just prequel to the real target, the Corporate Mafia. 

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