Anwar-ordered UiTM Holdings review widens scrutiny of Malaysia’s bumiputera institutions

KUALA LUMPUR – Scrutiny of Malaysia’s bumiputera institutions is intensifying, with Universiti Teknologi MARA’s (UiTM) investment arm now under renewed focus over its financial losses and governance.

Prime Minister Anwar Ibrahim has ordered a review of the governance and management of UiTM Holdings after the company recorded about RM157 million (S$49 million) in pre-tax losses accumulated across four financial years.

“If there was indeed misconduct, action must be taken,” Anwar, who is also finance minister, said at a UiTM alumni event on Sept 26.

The review puts another institution central to Malaysia’s bumiputera agenda under scrutiny. UiTM, established to expand higher-education opportunities for bumiputeras or “sons of the soil”, has become closely associated with the country’s affirmative-action policies for Malays and other indigenous communities.

UiTM traces its origins to 1956, while its investment arm, UiTM Holdings, was established in 2007.

The timing carries political weight. Anwar’s Pakatan Harapan (PH) coalition and its UMNO partners remain governing allies but are also electoral rivals ahead of the next general election (GE16) due by early 2028, with both sides seeking support among Malay voters.

The administration’s action also comes after years of concerns over UiTM Holdings, including questions about its financial performance and governance.

A Public Accounts Committee (PAC) review found in March 2024 that UiTM injected RM260 million into its investment arm between 2007 and 2018 without the required approval from the finance minister.

The committee had made detailed recommendations in 2024 to improve the financial governance and investment management of UiTM Holdings, PAC chairman Mas Ermieyati Samsudin said on Sept 28.

Anwar’s review order comes amid recent attention on Muslim pilgrimage fund Tabung Haji and state-owned land development agency Felda, adding to scrutiny of governance at institutions central to bumiputera interests.

The Malaysian Anti-Corruption Commission (MACC) has also been investigating losses at UiTM Holdings.

Earlier in September, the commission said its probe included the development of a 50-megawatt solar project in Gambang, Pahang, which allegedly involved a payment of RM42 million for purposes unrelated to the project and without the approval of the board of directors.

A more than 200-page report on Tabung Haji, which found a slew of governance failures and questionable payouts, was made public on July 29, 2026, after being completed in 2022.

Two UMNO leaders have since been charged in court over the alleged scandal: former religious affairs minister Jamil Khir Baharom and former Tabung Haji chairman Azeez Abdul Rahim. Both have claimed trial.

Felda, another institution closely associated with Malaysia’s bumiputera agenda, is also facing a wide-ranging MACC investigation into alleged corruption and misappropriation involving investments and asset acquisitions between 2010 and 2020.

Political risks

The scrutiny of these institutions could carry political risks for Anwar, analysts warn.

Syaza Shukri, a political analyst at the International Islamic University Malaysia, said the government’s approach appears to reflect an effort to show that it is serious about tackling mismanagement in institutions affecting Malays.

But she said the strategy could also backfire.

“It could look like the government is purposely going after Malay institutions and Malay leadership,” she told The Straits Times, adding that this could allow critics to portray the administration as being hostile to Malay interests.

University of Malaya political analyst Mohammad Tawfik Yaakub said the government would have to tread carefully because UiTM’s bumiputera character carries significant symbolic value.

Any review perceived as altering its fundamental status could quickly become an election issue, he said.

“The opposition is likely to frame it as a threat to Malay rights and use it to mobilise anxieties among Malay voters,” he told ST.

Political analyst Azmi Hassan from local think-tank Nusantara Academy for Strategic Research said the focus on Tabung Haji, Felda and now UiTM Holdings could fuel a perception that Malay-linked institutions were being used to cast UMNO leaders in a negative light.

“The pattern is very obvious. First with Tabung Haji, an institution close to the heart of the Malays, and now UiTM Holdings,” he said.

The Tabung Haji report was released during the Negeri Sembilan state election, but Azmi noted that it did not hurt UMNO’s performance.

Instead, UMNO performed strongly at the polls, winning all 16 seats it contested as its Barisan Nasional (BN) coalition returned to power in the state.

With the Melaka state assembly dissolved on Sept 23 and an election due within 60 days, UMNO-led BN and PH could face each other again at the state polls.

UiTM Holdings chairman Fathul Bari Mat Jahya, who is also an UMNO division chief, said in a Facebook post on Sept 26 that the RM157 million figure had been reported since 2023 and represented losses accumulated over several years, dating back to 2017.

“I hope this issue will not be politicised,” he said. Fathul became chairman in August 2025, while the company’s current management took over in January that year.

Anwar has denied that the scrutiny of these institutions is politically motivated.

“When people accuse us of revenge, that is not correct,” he said at the UiTM event.

“I don’t know who is being investigated, charged or whether action will be taken.”

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