Malaysia goes after US$178 million in London assets tied to Daim’s widow

The country’s anti-graft agency has expanded its embezzlement probe into the late tycoon’s family, targeting UK-based assets

Malaysia has launched efforts to freeze assets in London – including bank accounts and prime real estate valued at £132 million (US$178 million) – linked to the widow of the late tycoon Daim Zainuddin, according to anti-graft authorities.

The process – which will ultimately need to be executed by authorities in the United Kingdom – is part of a widening embezzlement probe into his family’s wealth.

Daim, who died last November aged 86, was a key ally of former prime minister Mahathir Mohamad and played a central role in driving Malaysia’s economic boom in the 1980s – a period critics say was marked by widespread crony capitalism that benefited Mahathir’s inner circle.

He was charged alongside his wife, Naimah Khalid, in January 2024 for failure to declare assets – allegations the couple dismissed as a politically motivated attack driven by Prime Minister Anwar Ibrahim, a long-time rival of Mahathir.

The charges against Daim were dropped following his death, but the Malaysian Anti-Corruption Commission (MACC) is continuing to probe the assets of his wife and sons.

On Tuesday, the Kuala Lumpur High Court granted the MACC an ex-parte application to freeze the assets, filed under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, according to national news agency Bernama.

The assets include two commercial buildings in St Mary Axe and One Crown Court; three luxury residences in Bryanston Square, Bryanston Mews and Lancaster Gate; two residential units in Gloucester Place; and a bank account at CAF Bank Limited (UK) held by the Ilham Foundation, which belongs to Daim’s family.

The next step will be to send a request to their counterparts in the UK to execute the order under a treaty on mutual assistance in criminal matters, MACC special operations division senior director Mohamad Zamri Zainul Abidin told This Week in Asia.

No timeline has been set for when the application will be filed.

This came as the MACC said it was in the process of forfeiting around 2 billion ringgit (US$470 million) in undeclared assets from Daim’s estate.

“Those undeclared assets – if proven – constitute an offence,” MACC chief Azam Baki said on May 22.

“Even though Daim is no longer here, we are heading towards [forfeiting the assets].”

He added that eight investigation papers had been opened into Daim’s overseas assets, with assistance from foreign enforcement agencies.

Local assets under scrutiny include the 58-storey Ilham Tower near the Petronas Twin Towers, several companies and what authorities described as a modest car collection.

The charge against Daim was dropped after his death, despite his wife’s insistence that he had wanted his day in court to clear his name.

Naimah Khalid, who has also been charged with the same offence, added that her family would not allow Anwar to evade responsibility for his “repeated public slander” against Daim.

In a public statement released by his lawyers, Daim urged Malaysians to “stand up against Anwar and his regime”, claiming that “honesty, integrity and good governance have gone out the window” as political institutions were weaponised against political opponents.

“Anwar should know that all this is not without repercussions,” he said in the statement.