Following corruption scandals and suspicions of cartel tenders, Malaysia is reforming its military procurement system.
Malaysia's Ministry of Defence has announced plans to reform its anti-corruption framework and procurement procedures amid a widening investigation into alleged cartel collusion and bribery in military contracts.
Malaysia's Ministry of Defence said it plans to review its anti-corruption system this year following a series of scandals involving military procurement, including allegations of bid-rigging and bribery.
At a press conference on Monday, Defence Minister Khaled Nordin said the army would also review tender and procurement procedures, citing a “breakdown in trust” amid an ongoing investigation into contracts awarded between 2023 and 2025, state news agency Bernama reported.
This statement follows the arrest on Thursday of former army chief Muhammad Hafizuddein Jantan and his two wives for their alleged involvement in a military contracting cartel. The three were detained on January 7 by the Malaysian Anti-Corruption Commission (MACC), which also arrested 17 company directors suspected of colluding in military procurement.
MACC reported that 2.4 million ringgit ($759,157) were seized during the attempted transfer, which investigators believe is related to bribes related to contracts. The investigation has since expanded, with the anti-corruption agency now investigating 26 companies suspected of involvement in the scheme.
The Ministry of Defense has been plagued by a series of corruption cases over the past year. In August, five senior army officers were arrested as part of an investigation into a smuggling network in southern Malaysia, which authorities say was smuggling approximately $1.2 million worth of contraband goods monthly.
Last week, the King of Malaysia and Supreme Commander of the Armed Forces, Sultan Ibrahim Sultan Iskandar, warned that corruption was the “main enemy” of trust in the military, specifically citing the role of middlemen in the Ministry of Defence. “These people should not be part of the system,” he said at a meeting with the new army chief, Datuk Azhan Md Othman.
