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A MILK powder supplier under investigation by the Malaysian Anti-Corruption Commission (SPRM) is believed to have monopolised the market and manipulated tender prices by between 10 and 50 percent in contracts awarded to a government department.
According to Berita Harian, citing unnamed sources, the company — jointly owned by a husband, wife and their child as shareholders — is suspected of supplying products valued at approximately RM120 million that failed to meet SIRIM quality standards.
“The investigation is focused on tax issues, elements of corruption, and monopolistic pricing practices in milk powder tenders to a government agency,” the source said.
It is also understood that the probe is examining the company’s structure and its business relationships with other distributors in the supply chain.
“The company allegedly inflated supply prices based on delivery zones, raising costs by 10 to 50 percent depending on the area,” the source added.
To date, the value of frozen accounts linked to the family-run company has reached RM174.6 million.
A total of 75 accounts have been frozen, comprising 24 individual and 51 company accounts. Investigators have also seized various documents, financial records, mobile phones and laptops.
The inquiry centres on the company owners, shareholders, and distributors responsible for delivering the milk powder to designated government clients.
So far, ten witnesses have been called in, with another family member expected to appear before SPRM investigators early next week.
“No new arrests have been made, but investigations are ongoing, including into the government department that awarded the supply contract,” the source said. - July 10, 2025