Its minister, Hannah Yeoh, said the decision is an immediate step that is being taken while an independent committee, led by former chief justice Raus Sharif, completes its investigation.
“I cannot pre-empt the investigation, and I am sure the independent committee led by Tun Raus will have its own proposals to strengthen integrity,” she said in her winding-up speech at the committee stage debate on the 2026 supply bill for her ministry.
“But for the time being, I want to state on behalf of the ministry that we will not provide any additional grants until FAM manages this issue properly, so that the public is assured every allocation and every ringgit of public funds used is fully accountable.”
On Nov 3, Fifa announced that it had rejected FAM’s appeal against its sanctions “in its entirety” and that Harimau Malaya’s points in their ongoing 2027 Asian Cup qualifying campaign might be docked.
FAM and the seven naturalised Malaysian footballers were penalised by Fifa after the world football body said FAM had submitted falsified documents to confirm the players’ eligibility before Malaysia’s 2027 Asian Cup qualifier against Vietnam on June 10.
In September, FAM was fined 350,000 Swiss francs (about RM1.8 million) while each player was fined 2,000 Swiss francs (about RM10,560) and suspended for 12 months from all football-related activities, effective from the date of notification.
The seven players are Gabriel Felipe Arrocha, Facundo Garces, Rodrigo Holgado, Imanol Machuca, Joao Figueiredo, Jon Irazabal and Hector Hevel.
FAM has since said it would appeal the sanctions Fifa imposed at the Court of Arbitration for Sport. Meanwhile, Fifa said it would probe FAM over the fiasco.
Yeoh also proposed that future applications to naturalise athletes must first be referred to the National Sports Council (MSN), which she said was better placed to decide if a team genuinely needs heritage or naturalised players.
“MSN, through the National Football Development Programme and various grassroots programmes, has spent money to ensure the development of homegrown athletes.
“MSN has also held town hall sessions with professional football clubs to discuss recruitment plans,” she added.