Ex-PM Muhyiddin’s legal woes implicate corporate Malaysia
Malaysia has no clear law policing private companies making financial contributions to political parties. Bersatu leaders, including Muhyiddin, have accused the government of mounting a political vendetta against the opposition in a bid to undermine the party ahead of crucial polls in six states sometime in June or July.
But Mr Anwar, who has made the battle against corruption the central plank of his administration, has repeatedly rejected the allegations of selective prosecution, stressing that his government has allowed the MACC and the attorney general to carry out their duties independently.
The mix of politics and business has long been a feature of the Malaysian economy, a system that has created unprecedented fortunes for business groups with strong connections to the country’s ruling elite. Recent developments suggest that those close ties can carry a cost for businesses caught on the wrong side of the political divide.
The lanky and pale-complexioned Mr Syed Mokhtar, who shuns the media, is Malaysia’s most politically well-connected business tycoon and in the past three decades has been perceived as the largest beneficiary of state contracts and concessions to control critical segments of the economy.
Seeds of Mr Syed Mokhtar’s meteoric corporate rise can be traced to his close ties with Muhyiddin since the late 1980s when the latter served as the chief minister of the wealthy Johor state. Leveraging his close connections to the state government, Mr Syed Mokhtar quickly emerged as one of Johor’s largest landowners before expanding his business interests nationwide.
In the late 1990s, Mr Syed Mokhtar emerged as the most favoured corporate son of the Mahathir Mohamad administration and those political ties helped him secure several lucrative business concessions, including the control of Padiberas Nasional Bhd (Bernas), which is the listed entity that has the monopoly over rice imports.
His infrastructure conglomerate MMC Corp Bhd controls port operations and power generation plants. Through his commanding interest in DRB-Hicom, another large diversified listed entity, Mr Syed Mokhtar owns equity in national car maker Proton, commanding stakes in a large Islamic bank and the national postal company, Pos Malaysia.
Shortly after Muhyiddin took power in March 2020, Mr Syed Mokhtar’s little-known Altel Communications Sdn Bhd became a surprised recipient of the 5G telecommunication spectrum together with other big-hitting local telco concerns, such as state-controlled Telekom Malaysia, Maxis, Celcom and DIGI Telecommunications.
Altel’s inclusion in the race for the highly coveted 5G spectrum caught industry players by surprise because of its passive role in the country’s telco sector. Altel was awarded the most amount of spectrum in the 2.6GHz band to deploy 4G services by the government in late 2012. Rather than develop its own infrastructure, Altel leased its spectrum bandwidth to other telcos.
CNA’s attempts to contact MMC Corp for comments by Mr Syed Mokhtar were unsuccessful.