Malaysia's Public Service Department (PSD) has revised its rules regarding asset declaration for civil servants, introducing a new directive on shareholding thresholds and approval mechanisms. This move follows a public outcry in early 2026 after reports revealed that anti-graft chief Azam Baki held shareholdings exceeding previously allowed limits for public officials, prompting an investigation by the Malaysian cabinet. The revised rules, effective June 16, aim to enhance integrity, accountability, and transparency within the civil service, according to PSD director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz.
The updated directive stipulates that a civil servant's shareholding in a private company must not exceed 5% of its paid-up capital or $300,000, whichever is lower. Similarly, cumulative shareholdings in publicly listed companies are capped at $300,000. Any share ownership surpassing these limits will now require specific approval. Furthermore, the cumulative value of all ownership or acquisition of shares, debentures, bonds, sukuk, or other securities (with some exceptions) is set at a maximum of $300,000. Assets below this $300,000 threshold still require declaration but not prior approval.
Anti-graft organizations have welcomed these changes as a progressive step. Transparency International Malaysia president Raymon Ram noted the necessity of periodic reviews given the evolving investment landscape for public officers. Malaysian Corruption Watch (MCW) president Jais Abdul Karim stated that the $300,000 cumulative ownership limit is not intended to restrict financial freedom but rather serves as a mechanism for checks and balances. MCW emphasized that exceeding this limit necessitates an approval process, scrutiny of income sources, and transparent declaration. Heads of department are now responsible for assessing an officer's financial capacity and the legality of asset acquisition, with a dedicated secretariat established to examine declarations and report any misconduct or integrity concerns.
