Malaysia overhauled rules governing civil servants’ shareholdings and asset declarations following public debate after Bloomberg reported former anti-graft chief Azam Baki held 17.7 million shares worth about RM800,000 in a financial services company in February 2026 [1, 2, 3].
The new regulations, issued by the Public Service Department on June 16, 2026, allow a public official to own up to 5% of paid-up capital or RM300,000 in shares of a Malaysian company, whichever is lower. This replaces the previous RM100,000 cap on maximum shareholding value. Officials’ total cumulative shareholdings must also not exceed RM300,000 in value [1, 2, 3].
Officials who wish to hold shares exceeding these limits must seek approval from designated authorities, which could include the Prime Minister and Chief Secretary to the Government [2, 3]. The rules took effect immediately after the circular’s issuance in mid-June 2026 [2, 3].
Public Service Department Director General Wan Ahmad Dahlan Abdul Aziz said the move aims to "strengthen integrity, accountability and transparency in public services, while ensuring that it remains relevant and in line with changing market conditions and the evolution of investment instruments" [2].
The review of the rules followed Bloomberg’s report in February 2026 that Azam Baki held shares far exceeding previous limits, prompting Malaysia’s Cabinet to order an investigation. A three-person committee of senior civil servants submitted findings to the Cabinet in March, and the matter was then referred to the Chief Secretary to the Government. The report and its findings have not been made public [1, 2, 3].
Azam Baki denied wrongdoing, stating he had "properly declared the transaction and that he had nothing to hide" [2, 3]. He retired as chief of the Malaysian Anti-Corruption Commission in May 2026 [2, 3].
Media reports surfaced between June 19 and 20 on the new asset rules soon after the circular was released [1, 2, 3]. The next step will be monitoring how these rules affect senior civil servants’ disclosures and whether the approval mechanism will be enforced in cases exceeding new shareholding limits.
