'Corporate mafia': SC enforcement strictly guided by law, Dewan Rakyat told

KUALA LUMPUR: The Securities Commission Malaysia (SC) carries out enforcement action within its legal powers, the Dewan Rakyat was told today amid concerns over alleged practices resembling a 'corporate mafia'.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the SC had a clear mandate to regulate the capital market and protect investors, with enforcement action determined by the nature and severity of offences.

"The SC has two main mandates under the Capital Markets and Services Act, to develop and regulate the capital market.

"In enforcement, the SC uses criminal, civil or administrative action according to the nature and seriousness of the offence to punish offenders, recover investors' money and preserve investor confidence," he said in response to a question from Khoo Poay Tiong (PH-Kota Melaka).

Amir Hamzah said the SC secured nine criminal convictions in 2025, with court-imposed fines totalling RM13.1 million.

Civil enforcement action resulted in RM20.1 million in disgorgement of unlawful gains and civil penalties, while regulatory settlements brought in another RM9.08 million.

"More importantly, RM1.98 million was returned to 239 investors, while RM8.6 million was allocated for restitution involving 933 investors," he said.

He said the SC had also pursued civil action against those involved in securities fraud.

In a case involving Teh Poh Yee and four others, the court ordered the defendants to pay RM100.6 million, excluding civil penalties ranging from RM350,000 to RM1 million.

In another case involving Ang Beng Cheang, the appellant was ordered to pay RM2.04 million and costs to the SC.

"These are examples of the actions taken this year. We can clearly see that the SC is effective in protecting investors' rights and taking appropriate action based on existing laws," he said.

Earlier, Datuk Awang Solahuddin Hashim (PN-Pendang) questioned the boundaries of the SC's jurisdiction, citing allegations that it had taken action against companies regulated by the Companies Commission of Malaysia (SSM).

He warned that regulatory uncertainty could lead to practices resembling a "corporate mafia", potentially frightening businesses and foreign investors.

Amir Hamzah rejected allegations that the SC had exceeded its jurisdiction.

"Every regulator in this country has its own mandate.

"When an investigation involves different mandates, both agencies will cooperate to determine whose jurisdiction applies and act according to the provisions of the law.

"So it is not true that the SC has exceeded its jurisdiction," he said.

He said coordination between regulators was essential to protect investors and maintain the integrity of Malaysia's capital market.