Malaysian Navy officer arrested in graft probe, assets seized including two US$510,000 hotels near naval base
A senior Royal Malaysian Navy officer has been arrested by the Malaysian Anti-Corruption Commission over suspected corruption linked to navy projects, with authorities seizing hotels, freezing bank accounts and probing assets allegedly disproportionate to his income.
- A senior Royal Malaysian Navy officer was arrested on 25 January 2026 over alleged corrupt practices linked to navy projects.
- The Malaysian Anti-Corruption Commission sealed two budget hotels and froze 21 bank accounts as part of the investigation.
- Authorities suspect the officer accumulated assets disproportionate to his declared income between 2017 and 2020.
KUALA LUMPUR, MALAYSIA: A senior Royal Malaysian Navy (RMN) officer has been arrested by the Malaysian Anti-Corruption Commission (MACC) over alleged corrupt practices linked to navy projects, with authorities seizing properties and freezing bank accounts believed to be connected to the case.
The arrest was carried out on 25 January 2026 as part of an ongoing probe into suspected abuse of position involving the recommendation and appointment of a company linked to the officer to secure quotation work within the navy.
According to local media reports, investigators believe the officer owns assets valued at approximately RM2.7 million, equivalent to about US$688,512, which are suspected to be disproportionate to his declared emoluments.
MACC sealed 2 budget hotels linked to the RMN officer
As part of the operation, the MACC sealed two budget hotels in Perak believed to be owned by the officer.
The hotels are estimated to be worth about RM2 million, or roughly US$510,008, despite offering low-cost accommodation.
Local media reported that the hotels are located less than 10 kilometres from the Lumut naval base, a key RMN facility in Perak.
Rooms at the premises were reportedly rented out for between RM50 and RM70 per night.
The MACC also froze 21 bank accounts during the operation.
These include 14 accounts belonging to several individuals, with total funds estimated at around RM700,000.
Investigators believe the accounts are linked to alleged collusion involving the senior RMN officer and other parties in facilitating the appointment of a so-called crony company.
In a statement to the media, MACC Intelligence Division Senior Director Datuk Saiful Ezral Arifin confirmed the arrests and said that statements have been recorded from seven individuals to assist with the investigation.
He added that the MACC, working with the Accountant General’s Department, is reviewing several companies to determine whether they were improperly awarded tenders or quotations linked to RMN projects.
“MACC is also tracing other assets owned by the suspect, as well as assets belonging to company owners believed to be acting in collusion with the suspect,” a source was quoted as saying by local media.
"Op Layar"
The investigation is being conducted under a broader operation known as Op Layar, which focuses on alleged corrupt practices involving RMN-related projects.
Previously, the MACC arrested a company director and the same senior RMN officer on suspicion of corruption related to the recommendation and appointment of a company to obtain quotation work at the officer’s workplace.
Authorities believe the two suspects conspired between 2017 and 2020. Both were remanded for seven days until 29 January 2026 following an application by the MACC at the Ipoh High Court.
Initial investigations also revealed that the officer is suspected of owning approximately eight immovable properties registered in his name.
These properties reportedly include three houses, three shophouses and two hotels, raising further questions about whether the assets were lawfully acquired.
Under existing codes of ethics and conduct, failure by a public officer to declare assets may warrant disciplinary action, separate from any criminal proceedings.
Separate anti-corruption investigations heightens scrutiny
The case has renewed public attention on governance and accountability within defence-related institutions, particularly in relation to procurement and project management.
On 23 Jan, Malaysia’s former armed forces chief Mohd Nizam Jaffar was charged with multiple corruption-related offences linked to the Armed Forces Welfare Fund. The charges include abuse of power, criminal breach of trust, and receiving valuables worth RM200,000, or about US$49,720.
On 22 Jan, former army chief Muhammad Hafizuddeain Jantan, 58, and his wife Salwani Anuar, 26, were charged with money laundering involving nearly RM2.2 million over alleged corruption and abuse of power linked to military procurement tenders.
