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Bank Negara Malaysia (BNM) has imposed financial penalties totalling RM1.07 million on four entities for breaches of anti-money laundering and counter-financing of terrorism (AML/CFT) regulations. The central bank said the enforcement actions were taken following failures by the institutions to comply with requirements under the submission of suspicious transaction reports (STRs), which are a key component of Malaysia’s financial crime prevention framework. MBSB Bank Berhad received the heaviest penalty, amounting to RM560,000. BNM said the bank failed to submit an STR relating to unusually large cash withdrawals that had triggered its internal red flag indicators. The lapse was attributed to insufficient staff awareness and understanding of STR reporting obligations. Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) was fined RM460,000 for failing to promptly file STRs involving suspicious activities linked to several customers. Similar to MBSB, BNM said the breach stemmed from inadequate staff awareness of AML/CFT reporting requirements. In addition to the two banks, two non-bank institutions were also compounded for comparable compliance failures. Boardroom Corporate Services Sdn Bhd was fined RM46,000 for not submitting an STR in a timely manner and for failing to conduct enhanced due diligence on a high-risk customer, as well as customers receiving nominee services. Ilham Secretarial Services was imposed a compound of RM8,625 for failing to promptly submit an STR relating to irregular transactions involving a customer. BNM said all four institutions have since taken corrective measures to strengthen their internal controls, enhance staff training and improve overall compliance with AML/CFT requirements. The central bank reiterated that it will continue to take firm enforcement action against reporting institutions that fail to meet regulatory standards, underscoring its ongoing commitment to safeguarding the integrity of Malaysia’s financial system.

The Malaysian Anti-Corruption Commission (MACC) has uncovered an alleged “protection money” network and hidden financial records linked to a well-known massage centre chain. According to Harian Metro, investigators found that the company allegedly operated a “two-tier” accounting system to conceal its actual earnings. This reportedly allowed substantial cash transactions to go unrecorded, leading to an estimated annual tax leakage of RM7.56 million. Working together with the Inland Revenue Board (LHDN), MACC focused its investigation on 32 branches that have been reporting since 2023. The probe revealed that bribes were allegedly paid to enforcement officers and local authorities to ensure uninterrupted operations. As part of the investigation, MACC froze 121 bank accounts holding about RM11.5 million. Five individuals — including company directors and senior management — were arrested in coordinated operations across Putrajaya and the Klang Valley. The suspects, aged between 30 and 50, were brought before the Putrajaya Magistrate’s Court yesterday, where Magistrate Ezrene Zakariah granted remand orders. Four suspects were remanded for four days, while one was remanded for three days to assist further investigations. The case is being investigated under Section 16 of the MACC Act 2009 for accepting gratification. So far, 12 witnesses have provided statements to the commission. MACC has also frozen and is examining luxury assets believed to be linked to the alleged offences. These include five luxury vehicles valued at RM1.5 million, five commercial properties worth RM7.3 million, seven residential units valued at RM7.7 million, and two industrial properties estimated at RM2.3 million. The total value of seized and frozen assets is estimated to exceed RM18.8 million. Investigators are assessing whether these assets were acquired using proceeds from unlawful activities. MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin confirmed that investigations are ongoing, including potential elements of money laundering. The commission said it remains committed to closing enforcement loopholes that enabled such activities and is also probing the extent of the alleged protection money network involving local enforcement personnel. The massage chain is alleged to have operated all 32 outlets while evading tax scrutiny by bypassing official reporting channels. Authorities are expected to record more statements from stakeholders and employees as the investigation enters its next phase. The RM11.5 million frozen in bank accounts will remain inaccessible pending the outcome of the probe, while the company’s operations continue to remain under close scrutiny by anti-graft authorities.

A total of 71 foreign food and beverage (F&B) franchisors were registered to operate in Malaysia as at Dec 31, 2025, accounting for 42% of the 170 F&B franchisors listed on the national register, according to the Ministry of Entrepreneur Development and Cooperatives. In a written parliamentary reply published on Parliament’s website, the ministry acknowledged the challenges faced by micro, small and medium enterprises (MSMEs), particularly in the franchise sector, amid growing competition from international F&B players offering lower-priced products supported by scale and global supply chains. The ministry said only foreign franchisors that are properly qualified and able to contribute meaningfully to the national economy are approved for registration. The response was given to a question by Siti Mastura Muhammad (PN–Kepala Batas) on measures the government plans to implement to safeguard local businesses, especially domestic MSMEs, from intensified competition following the entry of foreign firms. Separately, the ministry noted that its agencies have introduced initiatives to help MSMEs expand market access, including live-streaming programmes and free studio facilities through a collaboration between Tekun Nasional and TikTok Shop. It added that these efforts are aimed at boosting entrepreneurs’ sales, alongside Pernas’s MyMall platform, which offers free online marketing space for MSME products and services.

Malaysia’s automotive manufacturing sector is seeing increased participation from local precision engineering firms as the industry shifts toward higher-value and technology-driven production, amid rising regional demand. The shift mirrors regional supply chain changes, with specialised engineering now crucial as automakers seek higher precision and faster development. Operating within this evolving landscape, CNC Innovations Sdn Bhd, a Malaysian automotive aftermarket engineering company, reflects the industry trend toward advanced machining technologies, digital engineering tools and specialised expertise to support more  complex automotive applications. Daniel Gholami, Chief Executive Officer of CNC Innovation Sdn Bhd, together with the Board of Directors of the 5th Asia Automotive Award – Thailand Chapter, underscoring collaboration between Malaysian precision engineering firms and regional automotive industry leaders. From Left : Matahari Lee, Tom Kek, Dr Por Boon Kuan, Daniel Gholami, Ong Choon Jet, Nazrul Zahri The company specialises in high-precision CNC-machined components for automotive enthusiasts, performance tuners and industry professionals. Its product range includes billet intake manifolds, performance engine components and customised precision parts developed across multiple engine platforms, demonstrating the technical versatility required in performance-oriented applications. CNC Innovations uses advanced 3-, 4- and 5-axis CNC machining centres, supported by CAD/CAM software, computational fluid dynamics analysis, and precision measurement systems. This combination allows the company to produce components with tight tolerances and consistent accuracy, which are essential for applications where airflow, material strength, and dimensional precision affect performance. Beyond machining, the company provides engineering and manufacturing support services including prototyping, engineering consultancy, laser cutting, waterjet cutting, electrical discharge machining (EDM), welding and assembly. Industry observers note that such end-to-end capabilities are increasingly common among Malaysian precision manufacturers as firms seek to offer more comprehensive solutions under a single operational structure. CNC Innovations has also gained industry recognition for its technical capabilities, including receiving the Asia Automotive Innovation Excellence Award during the 4th Asia Automotive Award. More recently, the company participated as a main sponsor of the 5th Asia Automotive Award – Thailand Chapter, reflecting the growing involvement of Malaysian engineering firms in regional automotive industry platforms. The CNC Innovation team, whose combined expertise in precision engineering, advanced machining and automotive manufacturing supports the company’s expanding presence within the regional automotive aftermarket sector. The Asia Automotive Award, now in its fifth edition, brings together automotive manufacturers, suppliers and industry stakeholders across ASEAN. Participation by Malaysian companies at regional platforms is seen as part of a wider effort to strengthen cross-border industry engagement and enhance visibility within regional automotive supply chains. Alongside technology adoption, CNC Innovations places emphasis on workforce development through continuous training and skills upgrading. The company also collaborates with local universities and technical institutions as part of efforts to maintain workforce readiness amid evolving manufacturing technologies. Quality control remains a key focus, with structured inspections at every stage from material selection to final assembly. Lean manufacturing principles are applied to maintain consistency across both customised projects and higher-volume production. As the automotive industry continues to evolve, driven by electrification, efficiency requirements and higher performance standards, specialised engineering firms are expected to play an increasingly important role within regional and global supply chains. Industry participants note that the growth  of companies such as CNC Innovations reflects  a broader shift within Malaysia’s, with  local firms moving beyond conventional machining toward more specialised, technology-driven engineering services with regional impact.

Powerwell Holdings Bhd has received a purchase order (PO) valued at RM68.47 million for works related to a data centre project in Selangor, strengthening its order book and earnings visibility. In a filing with Bursa Malaysia, the electricity distribution products manufacturer said the PO was awarded by one of the leading multinational technology corporations specialising in data centre developments. The identity of the customer was not disclosed. Under the terms of the PO, Powerwell will be responsible for the design, procurement, delivery, testing and commissioning of low-voltage switchgear systems for the data centre. These systems are a critical component of data centre infrastructure, supporting stable and reliable power distribution. The group said the PO is expected to be completed by the second quarter of calendar year 2026. The contract is anticipated to contribute positively to Powerwell’s consolidated earnings and net assets over the period from the financial year ending March 31, 2026 (FY26) through FY27. Powerwell added that it does not foresee any exceptional risks arising from the project, apart from the usual operational risks associated with contracts of this nature. The award underscores Powerwell’s continued participation in Malaysia’s growing data centre sector, driven by rising demand for digital infrastructure and cloud services.