Malaysia

Milk powder supplier under graft probe for alleged price manipulation of up to 50 per cent

Anti-corruption investigators suspect company colluded in tender rigging and supply of substandard products worth RM120 million to government agency.

Updated 1 year ago · Published on 10 Jul 2025 6:59PM

Milk powder supplier under graft probe for alleged price manipulation of up to 50 per cent
The company is suspected of supplying products valued at approximately RM120 million that failed to meet SIRIM quality standards - July 10, 2025

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

Spotlight

World

Kim Jong Un appears in state media photos after unverified death rumours

Malaysia

Anwar challenges Rafizi over corporate crime, asks why he stayed silent as minister

Malaysia

AKPS chief Mohd Shuhaily to be charged over alleged assault on two policemen

Malaysia

Year One pupil dies after breathing difficulties in Dengkil classroom

Malaysia

College student remanded for three days over alleged rape of underage girl

Sports & Fitness

Lee Zii Jia settles dispute with father, sister over company affairs

By Alfian Z.M. Tahir

Malaysia

Online scam call centres: Police detain 31 people targeting foreign victims in Pahang crackdown

Malaysia

Guan Eng proposes RM1,000 tax rebate for purchase of air purifiers

By Ian McIntyre

You may be interested

Malaysia

Selangor palace urges public to verify royal links amid alleged land, luxury car scam

Malaysia

Property agent loses over RM79k after being scammed twice

Malaysia

MCMC warns cyberbullies, AI disinformation offenders as online safety comes under scrutiny

Malaysia

Tun M says grief still weighs on him after Siti Hasmah’s death

Malaysia

King appoints three Malaysian envoys to Canada, Belgium and Iran

Malaysia

Anwar responds to young Ammar’s plea for prayers ahead of surgery

By Alfian Z.M. Tahir

Malaysia

Families of 54 missing Malaysians seek official confirmation, government aid

Malaysia

PN vows court fight against deregistration with Melaka polls 11 days from nomination