PETALING JAYA: The passing of former Finance Minister Tun Daim Zainuddin at the age of 86 marks the end of an era for a man whose life intertwined public service with formidable wealth accumulation.
A renowned-yet-reclusive businessman, Daim had amassed a substantial empire, encompassing over 30 companies.
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However, the fate of some of these assets has come under scrutiny, as legal proceedings initiated by the Malaysian Anti-Corruption Commission (MACC) over undeclared assets remain unresolved.
Daim’s business empire spans property development, hospitality and material industries, with entities like Ibu Kota Developments Sdn Bhd, Menara Ampang Sdn Bhd and Avillion Bhd at its core.
Avillion, known for its luxury Avillion Hotel chain, has recently struggled financially, enduring losses for over eight years.
However, its assets, including hotels and resorts in Port Dickson, Pangkor and Cameron Highlands, contribute a significant net book value of RM285.92mil, making it a notable jewel in Daim’s portfolio.
Beyond Avillion, Daim’s lesser-known holdings also reveal intriguing financial dynamics. For instance, among the 14 privately held companies cited in the MACC probe, only a handful have been consistently profitable, according to media reports, while most others have remained loss-making, hinting at the complexities involved in Daim’s sprawling business empire and the potential implications for his heirs and associates.
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“The death of Daim signals not just the end of a significant era in Malaysian finance but raises questions about the fate of his complex business empire.
“With his assets woven across various industries and under scrutiny from regulatory bodies, Daim’s legacy is set to challenge his heirs as they navigate both the immense opportunities and legal intricacies left in his wake,” one financial analyst told StarBiz.In January, Daim and his family sought judicial review to challenge the MACC’s investigation into his finances. The investigation, launched following revelations in the Pandora Papers, accused Daim of failing to declare numerous assets, including properties, vehicles and companies spread across Malaysia and abroad.
Daim, who pleaded not guilty, claimed these assets were acquired legitimately well before his political career, stating that his wealth was amassed through business ventures dating back to the 1970s.
Despite his protestations, the MACC’s probe has raised questions about the governance of Daim’s extensive holdings. His name rarely appears as a direct shareholder in any of his privately held companies, an observation which some experts argue indicates a deliberate choice to maintain a discreet presence in the corporate landscape.
Notably, his late wife, Toh Puan Mahani Idris, and son, Datuk Md Wira Dani, appear in key positions across several of his companies, including Alun-Alun Resort (M) Sdn Bhd and Maya Seni Holdings Sdn Bhd.
Daim’s legacy is not limited to financial assets but extends through his family members who play critical roles in sustaining his corporate interests.
His son, Wira Dani, is the largest shareholder of Avillion Bhd
, with a 21.82% stake held via Daza Holdings Sdn Bhd and Ibu Kota Developments Sdn Bhd. Having held this position since 2016, Wira Dani’s role underscores the family’s ongoing influence within the company, despite its recent financial difficulties.
Interestingly, Daim’s family has actively sought legal relief from MACC investigations, filing for judicial review to challenge the probe on grounds of constitutionality and fairness.
They argue that the MACC’s investigation lacks reasonable grounds and point to Daim’s longstanding, publicly known business interests as evidence of his legitimate wealth.
From his pivotal role in creating landmark real estate developments like Taman Maluri and Taman Bukit Maluri in the 1970s to his contributions to finance through controlling stakes in companies such as RHB Bank, Daim’s influence shaped key sectors of the economy.
His foray into international banking with the establishment of ICB Financial Group Holding and his investment in Bank Internasional Indonesia further expanded his business footprint globally.
Analysts have speculated on how Daim’s passing might impact his business empire, given the ongoing legal complications and the complex structure of his holdings, one fund manager observed.
“Daim’s successors face a daunting task: to preserve his financial influence amid ongoing regulatory probes, setting the stage for what could be a pivotal moment in Malaysian corporate governance and transparency,” he stated.
If MACC investigations result in asset freezes or seizures, the operational continuity of several businesses may be threatened, potentially impacting their employees and stakeholders.
Records showed Daim’s son, Wira Dani, already plays a significant role, holding substantial shares in Avillion and other property holdings. However, with MACC investigations ongoing, the family may face additional challenges if asset declarations or management come under further scrutiny.
While Daim’s legacy in Malaysian finance and property development remains indelible, his later years have been shadowed by legal disputes and scrutiny.
His image as a business tycoon with powerful political alliances was long established, owing in part to his advisory role to former Prime Minister Tun Dr Mahathir Mohamad. Daim’s critics often cite his substantial wealth as a product of his political influence, a narrative he refuted by emphasising the financial losses incurred due to his shift from business to public office.
Indeed, Daim recently noted in a supporting affidavit that he would have acquired even greater wealth had he remained exclusively in the private sector.
In January, he reportedly said that if he had stayed in business and done nothing to actively grow his assets, the value of his liquid stock holdings alone would be worth more than RM50bil.
“My decision to join the government and serve my country came at great financial loss to myself and my family,” Daim said, without revealing his current net worth.
Daim served as Finance Minister from 1984-1991 and again from 1999-2001, playing a key role in the-then Prime Minister Dr Mahathir’s administration in transforming Malaysia into a modern industrial nation.
He was appointed to lead an advisory body, the Council of Eminent Persons, when Dr Mahathir returned as Prime Minister under Pakatan Harapan in 2018.
As the government moves to curb financial misconduct, Daim’s case could set a precedent. His assets, if subjected to regulatory intervention or revaluation, may reveal discrepancies that could amplify public calls for transparency in the wealth management practices of prominent figures, one analyst said, noting Daim’s empire serves as a complex reminder of how wealth and power intersect in the lives of public figures.
For some, Daim’s legacy is one of privilege shrouded in secrecy, with assets woven into an intricate web that raises questions about accountability.
But for many, Daim will be remembered as a financial architect of Malaysia’s development, whose strategic policies helped shape the nation.
