Malaysian minister calls for royal inquiry into graft agency amid cabinet rift

Malaysian Minister Calls for Royal Inquiry into Corruption Agency Over ‘Agency for Hire’ Allegations

KUALA LUMPUR — A senior Malaysian cabinet minister is calling for a high-level public inquiry into allegations that the country’s anti-corruption agency has been operating as an “agency for hire” in corporate takeover battles.

Transport Minister Anthony Loke said he will formally propose the establishment of a Royal Commission of Inquiry (RCI) at a cabinet meeting on Feb. 27. An RCI is the highest form of public investigation available under Malaysian law.

The move marks a significant escalation from the cabinet's earlier decision to form a task force to investigate share ownership violations involving Malaysian Anti-Corruption Commission (MACC) chief Azam Baki.

Loke, who leads the Democratic Action Party (DAP), described the government’s current response as “inadequate.” The DAP is the largest partner in Prime Minister Anwar Ibrahim’s unity government.

The MACC has dismissed the allegations as baseless.

The DAP is currently facing pressure from its political base regarding the matter. The party is scheduled to hold a special congress in July 2026 to decide whether it will continue its participation in the ruling government coalition.

Transport Minister Anthony Loke’s demand for a high-level probe is more than a call for accountability; it is a calculated political gambit within Malaysia’s increasingly fractious ruling coalition. For a sitting minister to publicly challenge his own government’s crisis management is a rare breach of cabinet protocol, signaling deepening fault lines within Prime Minister Anwar Ibrahim’s administration.

The Democratic Action Party (DAP) is currently navigating a period of acute vulnerability. Following a decisive defeat in the November 2025 Sabah state elections, the party is under intense pressure from a core constituency that feels betrayed by stalled reform pledges and a series of compounding scandals. By pushing for a Royal Commission of Inquiry (RCI), Loke is attempting to recalibrate the DAP’s reformist credentials and neutralize internal dissent ahead of a critical special party congress in July. The move is a strategic effort to prevent a grassroots exodus that could collapse the unity government.

This confrontation leaves Prime Minister Anwar Ibrahim with a narrow path to maneuver. Acceding to the demand for an RCI risks alienating other coalition partners and may be interpreted as a sign of weakness under pressure. However, dismissing the request risks marginalizing the DAP—his largest parliamentary bloc—and further eroding public trust. The situation stands as a definitive litmus test for Anwar’s "Reformasi" administration: whether it will uphold institutional integrity or prioritize political expediency to ensure its own survival.