KUALA LUMPUR, 9 September 2025 — Prime Minister Datuk Seri Anwar Ibrahim has underscored the pivotal role of internal audit in Malaysia’s efforts to combat corruption, financial leakages, and systemic governance failures, calling it a non-negotiable foundation for sustainable growth.
Speaking at the opening of the 2025 Asian Confederation of Institutes of Internal Auditors (ACIIA) Conference in Kuala Lumpur, Anwar said that if Malaysia is serious about addressing entrenched misconduct, internal audit mechanisms must be robust, far-reaching, and consistently applied across both the public and private sectors.
“If we are truly serious about addressing major issues such as leakages, misconduct and corruption, then internal audit is essential. It forms the basis of good governance,” he stressed, as quoted by Utusan Malaysia.
While reaffirming Malaysia’s commitment to economic growth, Anwar warned that no country can sustain progress if mismanagement and corruption are allowed to fester. He called for a comprehensive, whole-of-society approach, one that empowers oversight bodies while also ensuring businesses and professional groups take an active role in enforcing accountability.
Expanding Oversight Across Institutions
The Prime Minister pointed to the government’s recent reforms aimed at widening oversight channels, including closer scrutiny of public sector machinery in collaboration with Bursa Malaysia, the Securities Commission (SC), and private corporations.
He commended the Malaysian Institute of Internal Auditors (IIA Malaysia) for its launch of the 2025 Statement on Risk Management and Internal Control (SORMIC) Guide in partnership with Bursa Malaysia. The guide, he noted, promotes stronger risk awareness, bolsters investor confidence, and equips companies to address environmental, social and governance (ESG) challenges alongside emerging financial risks.
Institutional Reforms to Safeguard Public Funds
Anwar highlighted several critical reforms carried out under the Madani Government, including the first amendment to the Audit Act in 33 years, which strengthens the mandate of the National Audit Department under the Auditor-General. He also cited the establishment of the Serious Irregularities Committee, designed to swiftly investigate major breaches, as another key measure to enforce accountability.
“Since 2024, follow-up audits have successfully recovered and safeguarded RM159 million, reflecting the tangible benefits of these reforms,” he said.
A Long Battle Against Entrenched Power
Despite progress, Anwar admitted that eradicating corruption is an uphill battle. Those involved, he noted, often possess deep financial resources, political connections, and entrenched influence.
“In any country’s history, eradicating corruption is never easy because those involved have money, power and influence,” he said, while extending his appreciation to the individuals and institutions who have taken bold steps to uphold integrity in the face of resistance.
The Prime Minister reiterated that the fight against corruption is essential to Malaysia’s long-term ambition of becoming a high-income, globally competitive economy. For this to be realised, he said, auditors in both the public and private spheres must act as guardians of trust and financial discipline, ensuring that governance frameworks remain resilient and effective.
