FAM’s management is being criticized for its poor management, notably FIFA’s suspension for seven naturalized players who falsified documents and a lack of transparency in financial operations. In addition, the fact that clubs are owing players salaries and the inconsistent performance of national teams also show that FAM has not fulfilled its responsibilities.

According to the New Straits Times (NST), sponsors, including the Malaysian government, are increasingly wary of FAM.

KBS Minister Hannah Yeoh considers this an understandable reaction in sponsorship activities.

“For FAM, they cannot prolong this any longer,” Yeoh said at an event in Kuala Lumpur on Nov. 28, as quoted by NST.

He said the government can’t simply cut ties with FAM as it would affect the Malaysian football ecosystem. However, if FAM wants to continue to receive support, they must reform.

“If FAM wants to continue obtaining government support, funding and sponsorships, its leadership must change,” Yeoh added. “They must hold discussions on governance and show how they intend to improve to regain sponsors’ confidence.”

The minister affirmed that the cabinet attaches great importance to transparent and integrity governance because it involves public money. Previously, FAM was allocated 15 million ringgit (US$3.63 million) by the Malaysian government for the 2027 Asian Cup qualifying campaign. All expenditures are closely monitored by KBS, the Ministry of Finance, the National Sports Council and the National Security Council.

Following Yeoh’s announcement, long-time sponsor Bank Islam has reportedly removed its logo from FAM’s official website and match boards. This move is seen as an attempt to protect its reputation, after the FIFA Appeal Committee upheld the sanctions for FAM and seven naturalized players and released a detailed report of the decision on Nov. 18.

FAM announced that they will continue to appeal to the Court of Arbitration for Sport (CAS).

KBS emphasized that the Asian Football Confederation (AFC) has requested the case to be resolved by March 2026. This is also the time when the 2027 Asian Cup qualifiers conclude, with Malaysia visiting Vietnam in the final match of Group F on March 31.

An independent commission in Malaysia has been set up to investigate the ongoing naturalization issues in FAM and relevant government agencies.