Malaysia’s Ex-HR Minister Charged With RM1.1M Bribery Over Foreign Worker Quotas

Malaysia’s former human resources minister M Saravanan faced three corruption charges on August 28 for allegedly receiving RM1.097 million in bribes to approve foreign worker quotas in 2022. The 58-year-old Tapah MP pleaded not guilty at Kuala Lumpur Sessions Court and was granted RM450,000 bail. The charges carry a maximum 20-year jail term and fines of up to five times the bribe amount if convicted.

The three bribery allegations

Saravanan allegedly received RM150,000 in cash on June 16, 2022, at Bukit Jalil Golf & Country Resorts from Vectica Resources director Tan Teck Lim through intermediary Syed Amirul Syed Ahmad. On July 7, 2022, he allegedly received RM350,000 in cash at Jalan Telawi 3, Bangsar, and RM597,000 via cheque deposited into Big Seven Ventures’ Maybank Islamic account at Jalan Klang Lama branch. All payments were allegedly given to approve a 1,000 foreign worker quota for TYKB Engineering Sdn Bhd.

Saravanan denies charges and hints at political motivation

Saravanan described the charges as “wild accusations” and said he has no personal relationship with the people named except Syed Amirul. He told reporters after claiming trial that facts would emerge in court and appeared to suggest the charges could be politically motivated, urging opponents to contest him in elections rather than use “these sorts of tactics.” He also wrote to Prime Minister Anwar Ibrahim requesting a thorough review of his case.

Bail set at RM450,000 amid court dispute

Judge Azura Alwi set bail at RM450,000 after the prosecution proposed RM800,000 in one surety. Saravanan’s lawyer Geethan Ram Vincent objected to the higher amount, arguing bail should not be punitive and proposing RM400,000 instead. The prosecution requested that Saravanan register with the Malaysian Anti-Corruption Commission office and surrender his passport to the court.

Stock market turmoil over alleged links

Zetrix AI Bhd (ZETRIX), formerly MyEG Services, plunged 50.4% to 29.5 sen on Friday in heavy trading, with 1.05 billion shares changing hands. The company issued a bourse filing denying any connection to Saravanan’s charges, stating there was no basis for rumours linking it to the foreign worker quota case. Zetrix emphasized it was not aware of any connection between the charges and its business. Associate HeiTech Padu also fell 30% to 87.5 sen intraday, with Zetrix holding a 16.9% indirect stake.

Legal framework and penalties

All three charges were framed under Section 16(a)(B) of the Malaysian Anti-Corruption Commission Act 2009, punishable under Section 24(1). Conviction carries a maximum 20-year imprisonment and a fine of not less than five times the gratification amount or RM10,000, whichever is higher. Saravanan served as HR minister from March 2020 to November 2022 under two prime ministers, Muhyiddin Yassin and Ismail Sabri Yaakob, before the alleged offences occurred in mid-2022.

Prime Minister Anwar’s measured response

Prime Minister Anwar Ibrahim said he was still waiting for a letter from Saravanan and would refer it to the Malaysian Anti-Corruption Commission once received. Anwar stated, “From there, it is no longer my business. I will refer it to MACC to look into. We must give them the space to investigate and allow the prosecution to go on.” He said the government would wait for the court’s decision on the case.

Final Thoughts

Saravanan’s corruption trial marks a significant test of Malaysia’s anti-corruption enforcement. For Singapore investors, the stock market reaction in Zetrix AI and HeiTech Padu signals market sensitivity to governance risks in Malaysian government services firms.

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