MACC probes milk powder supplier over alleged tender price manipulation, RM120m supply monopoly

Malay Mail

11-07-2025

KUALA LUMPUR, July 11 — A company supplying milk powder is being investigated by the Malaysian Anti-Corruption Commission (MACC) for suspected manipulation of tender prices by between 10 and 50 per cent depending on the zone, apart from monopolising the market in supply contracts to a government department.
According to sources, the company, owned by a married couple with their sons as the main shareholders, is believed to have been involved in supplying products worth RM120 million that did not meet the standards of the Standards and Industrial Research Institute of Malaysia (Sirim).
'The focus of the investigation is on tax issues, corruption and monopoly practices in the supply of milk powder tenders to a government department.
'The investigation is also looking into the ownership of the company, including the network of other distributors that play a role in the milk powder supply chain,' according to the source.
Sources said so far 75 accounts have been frozen involving 24 individual accounts and 51 company accounts with a total value of RM174.6 million.
'Various documents involving the milk powder supply contract and financial documents were also seized, including mobile phones and laptops to enable further investigations to be carried out,' he said.
Sources said so far 10 witnesses have been called to give statements to MACC, while another son of the couple who own the company is expected to appear at the MACC office next Tuesday or Wednesday.
'There have been no new arrests so far, but investigations are still continuing, including against the management of a government department that are directly involved in the milk powder supply contract,' he said.
The media yesterday reported that three family members suspected of being the mastermind behind a milk supply tender monopoly for a government department over the past two decades were arrested under Op White here, last Tuesday.
MACC chief commissioner Tan Sri Azam Baki reportedly said the family was suspected of being the mastermind behind a RM120 million milk powder supply cartel involving a government department.
He said all the premises raided were suspected of storing all documents related to milk powder supply contracts since 2019 following MACC's investigation into two owners and a director of a milk powder supplier company that is believed to not meet Sirim's standards.
The investigation is being conducted under Section 16 of the MACC Act 2009 in addition to identifying criminal elements under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA). — Bernama