KUALA LUMPUR, Nov. 3 -- The federal government has not dismissed the possibility of convening a Royal Commission of Inquiry (RCI) into allegations of a "corporate mafia", but maintains that this requires a demonstrated need and clearly defined terms of reference, the Home Ministry told the Dewan Rakyat.

The ministry said this in a written reply to Kota Melaka MP Khoo Poay Tiong, who pressed the government on the progress of police investigations, whether identified syndicate masterminds would face prosecution, and whether Putrajaya was prepared to establish an RCI to examine regulatory abuse.

"Regarding the proposal to establish a Royal Commission of Inquiry (RCI), the government is of the view that the matter should be considered based...