Malaysia

Malaysia saves billions by tackling cartel practices, says Prime Minister

Anwar warns government ministries and agencies against reliance on cartels, citing their widespread presence across sectors such as food, healthcare, defence, and construction as a major source of national financial leakage

Updated 6 months ago · Published on 24 Jan 2026 12:00PM

Malaysia saves billions by tackling cartel practices, says Prime Minister
Working with cartels cost billions and burden citizens - January 24, 2026

by Ian McIntyre

PRIME MINISTER Datuk Seri Anwar Ibrahim has called for urgent measures to dismantle monopolistic cartels that he says are causing significant financial losses and driving up the cost of living for Malaysians.

Addressing the public at the opening of the new Seberang Jaya Hospital building in Penang on Saturday, Anwar warned that continued dependence on such cartels places undue pressure on citizens and government resources.

“For years, the government spent between RM1 billion and RM1.2 billion annually simply to maintain chicken prices due to cartel dominance. We have now taken decisive action to curb this, and RM1.2 billion has been successfully saved,” he said, highlighting the tangible impact of targeted interventions.

Anwar emphasised that cartel influence is not limited to the food sector. Sectors including defence, healthcare, and public works have also been affected, forcing the government to operate within outdated systems and inflated pricing structures.

“In defence there are cartels, in healthcare there are cartels, in the Public Works Department there are cartels. Ultimately, the country is pressured by groups demanding unreasonable prices,” he said.

The Prime Minister noted that reforms in the procurement of medicines, prioritising affordable generics that meet safety standards, have saved nearly RM1 billion annually.

“Drugs from the United States cost RM100 each, whereas generics from other countries can be purchased for RM10,” he explained.

Anwar also cited the principles of technology transfer and localisation outlined in the National Defence Industry Policy as a model for other ministries, allowing local capability development and reducing dependence on foreign monopolies.

Savings generated from dismantling cartels, targeting subsidies more effectively, and combating smuggling and corruption have enabled the government to redirect funds to citizens without raising taxes.

“Among the measures implemented are public service salary increases amounting to RM18 billion, as well as the Tunai Rahmah and Sumbangan Asas Rahmah (SARA) programmes totalling RM15 billion. We did not increase taxes.

“These funds come from our courage to end cartels, close financial leaks, and reform outdated systems,” he said.

Acknowledging that the cost of living remains a persistent challenge, Anwar reaffirmed the government’s commitment to targeted initiatives such as the Madani Rahmah Sales Programme, designed to alleviate financial pressure on ordinary Malaysians.

“With stable politics and a secure country, we are able to make firm decisions, even if they are unpopular with some,” he added, underlining the administration’s focus on fiscal prudence, transparency, and public welfare.

The Prime Minister’s statements signal a firm stance against entrenched monopolistic practices while emphasising reforms that deliver tangible benefits to the rakyat across multiple sectors. - January 24, 2026

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