SHAH ALAM – The Malaysian Anti-Corruption Commission (MACC) has recorded statements from 10 individuals in connection with a cartel allegedly involved in supplying substandard infant formula worth RM120 million (S$36 million) to a government department, according to Sinar Harian. Among those questioned are a married couple and their two sons, who are believed to be the owners and directors of the company at the centre of the alleged scheme.
Sources revealed that the family-operated firm had allegedly monopolised government tenders for infant formula supply for the past two decades. The MACC has confirmed the seizure of RM174.6 million across 24 individual and 51 corporate bank accounts.
Special operations senior director Datuk Mohamad Zamri Zainul Abidin confirmed the asset seizures and said investigations are ongoing, with the government department linked to the supply contracts also under scrutiny. The case, uncovered through a joint operation by MACC, the Inland Revenue Board and Bank Negara, led to the arrest of three family members comprising two company owners and a director aged between 40 and 70.
MACC chief commissioner Tan Sri Azam Baki said the suspects had allegedly supplied low-quality formula milk across Peninsular Malaysia from 2021 to 2024. Raids were conducted at a milk processing facility and two related companies in the Klang Valley.
Preliminary investigations revealed that several companies awarded milk supply tenders had no links to the food industry. Instead, their core businesses ranged from furniture and electrical services to real estate, civil engineering and transport. These entities reportedly profited between 10 and 50 per cent on the deals.