The Securities Commission (SC) of Malaysia achieved nine criminal convictions and secured RM13.1 million in court-imposed fines last year, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. The announcement came during Minister’s Question Time in the Dewan Rakyat, where he addressed concerns about so-called “corporate mafia” activities in the capital market.

In addition to the criminal penalties, civil enforcement by the SC led to court orders for the disgorgement of illegal profits and civil penalties amounting to RM20.1 million. Regulatory settlements within the same period generated another RM9.08 million. Amir Hamzah highlighted that RM1.98 million had been returned to 239 investors while RM8.6 million had been earmarked for restitution involving 933 investors.

The inquiries were prompted by a supplementary question from Khoo Poay Tiong (DAP-Kota Melaka), who asked about the effectiveness and firmness of the SC’s enforcement actions amid criticisms frequently levied against the regulator when issues of corporate wrongdoing arise.

The minister explained that the SC operates under the Capital Markets and Services Act 2007 (CMSA) with dual mandates to both develop and regulate Malaysia’s capital market. Enforcement actions could take the form of criminal prosecution or civil suits depending on the nature and severity of the offense, with the primary aims of recovering investors’ losses and maintaining market integrity.

He cited recent judicial outcomes demonstrating the commission’s ongoing enforcement momentum. On February 20, the High Court upheld the convictions of Su Eng Kooi and Yap Choong Seong, sentencing each to one year’s imprisonment and imposing RM1 million fines per charge for conducting unlicensed capital market activities.

Another notable conviction occurred on July 15, when Muhamad Fadzli Jamaluddin, a former director of Kyaputen Sdn Bhd, received a five-year jail term for unlicensed fund management and money laundering. The case involved six victims with combined losses totaling RM1.263 million.

On the civil front, the SC won a securities fraud case against Tey Por Yee and others, resulting in a court order for the defendants to pay RM100.6 million, in addition to civil penalties ranging from RM350,000 to RM1 million. In another separate case, the appellant was ordered to pay RM2.04 million plus costs to the commission.

Amir Hamzah concluded that these enforcement efforts illustrate the SC’s capacity to uphold investors’ rights effectively and to take appropriate legal action consistent with the law.