Malaysia one of the most corrupt nations, survey shows

by Jennifer Gomez
The Malaysian Insider
September 27, 2013

Malaysia has been ranked as one of the most corrupt nations and listed as a country which is most likely to take shortcuts to meet targets when economic times are tough, according to a recent survey by Ernst & Young, signalling that the government’s Performance Management and Delivery Unit (Pemandu) has failed in its role to transform the economy.

Malaysia, along with China, has the highest levels of bribery and corruption anywhere in the world, according to the latest report, Asia-Pacific Fraud Survey Report Series 2013.

This year’s survey polled 681 executives in China, Singapore, Australia, New Zealand, Indonesia, Vietnam, Malaysia and South Korea.

About half of the 681 executives polled on their perception of fraud felt that China, Indonesia, Malaysia and Vietnam were the worst in bribery and corruption.

Those polled were employed at corporations with a turnover in excess of US$500m, ranging from the industrial sector to financial services, retail and natural resources.

“Fraudulent practices are on the rise, and there is a disconnect between the policies that are in place and how they are applied in practice,” said Chris Fordham, EY Fraud Investigation & Dispute Services Managing Partner of Asia-Pacific, in the report.

About 39% of respondents said that bribery or corrupt practices happened widely in Malaysia, a figure which is nearly double the Asia-Pacific average of 21%.

In addition, 29% of respondents said that bribery or corrupt practices here have increased due to tough economic times and increased competition, which is the third highest among the countries surveyed.

The report also revealed that respondents felt that while some countries in Asia had strong anti-bribery and corruption policies, they did not work in practice.

Around 40% of respondents said their companies have anti-bribery polices or codes of conduct in place and 35% confirmed that their senior management has communicated its commitment to these principles.

E&Y also found that the risk of fraud, bribery and corruption were greater in growth markets.

“This may be due to a weak control environment that results in policies and procedures being implemented differently from global compliance frameworks.

“Companies operating in local markets may also feel compelled to operate in line with local business culture, resulting in conflicts with global compliance regimes,” the report noted.

E&Y found 4% of the respondents “agreed” or “strongly agreed” that it was all right to offer cash payments to win business.

“It should be zero, because companies have a policy of zero tolerance towards bribery,” said Torsten Duwenhorst, an E&Y partner.

Prime Minister Datuk Seri Najib Razak has staked his premiership on six National Key Result Areas (NKRA), of which “Reducing Corruption” was one of the most important.

Najib and his team have taken great pains to point out to Malaysians and foreigners the “efforts” and “successes” in achieving the key performance indicators (KPIs) of the NKRA.

In 2011, Pemandu boasted that the initiatives taken have shown tremendous results in eradicating corruption.

The government also pointed out that “the effectiveness of the actions taken is being slowly felt and acknowledged by the general public”. – September 27, 2013.

  1. #1 by Godfather on Friday, 27 September 2013 - 5:45 pm

    Tell us something we don’t know.

  2. #2 by cinaindiamelayubersatu on Friday, 27 September 2013 - 6:45 pm

    Apa nak jadi negara kita
    Kebarangkalian tiada batasannya
    Paling korap pemimpin kita
    Tunggu saja balasan dariNya

  3. #3 by cinaindiamelayubersatu on Friday, 27 September 2013 - 6:49 pm

    Anak muda bernama nedim
    Beli rumah 7 juta
    Bapaknya mengaku kaya raya
    Adakah itu hasil titik peluh?

  4. #4 by yhsiew on Friday, 27 September 2013 - 6:57 pm

    When the powers that be are corrupt, everything is corrupt.

  5. #5 by Di Shi Jiu on Friday, 27 September 2013 - 7:48 pm

    “… half of the 681 executives polled on their perception of fraud…”

    Phew!! For a minute there, i thought Ernst and Young really had something about corruption in Malaysia.

    I note that it is merely the “perception of fraud” we are discussing. :)


  6. #6 by tuahpekkong on Friday, 27 September 2013 - 7:49 pm

    I have often thought that corruption is a function of a country’s stage in economic development. The more advanced a country is economically, the less corrupted the country becomes. It looks like it is not the case for Malaysia. At least in China, some very high ranking Government officials have been charged and convicted of corruption. Call it power struggle between different camps if you want. How many very high ranking Government officials in Malaysia have been charged and convicted of corruption? Oh, there is nothing irregular about the RM 40 million “donation” to UMNO Sabah or the RM 10 million remitted by a politician to the UK. We are dead united in the fight against corruption.

  7. #7 by on cheng on Friday, 27 September 2013 - 8:42 pm

    RM 40 million donation must be in Singapore cash SGD10000 , banknotes to be carry from Hong Kong by flight ???

  8. #8 by Noble House on Saturday, 28 September 2013 - 3:35 am

    What else is new?

    In July, a supplementary bill of RM12 billion was approved for the year 2012. Now, another RM15 billion is being tabled just a few weeks before the Budget 2014 announcement.

    Deputy Finance Minister Ahmad Maslan told the Dewan Rakyat that the payment for subsidies, emoluments and other “urgent items” required RM14.13 billion and an additional RM888.5 million was required for other expenditure. General services in the Treasury alone would be receiving RM11.8 billion of the added allocation, he added.

    Say “hello” to Greece!

  9. #9 by boh-liao on Saturday, 28 September 2013 - 5:34 am

    UmnoB erection is on n their candidates generally unabashedly carry d badge of corruption

  10. #10 by yhsiew on Saturday, 28 September 2013 - 8:08 am

    The Bumiputera Economic Empowerment plan launched just weeks before Umno polls is a form of “money politics”. While the government may deny that, such corruption cannot escape Ernst & Young’s watchful eyes.

  11. #11 by Bamboo on Saturday, 28 September 2013 - 12:07 pm

    Corruption is so endemic in Malaysia that our ability to attarct FDI is dismal in recent times. Corruption increases costs to do business. Which sane companies would put money on our soils with extra extra costs to do business.

  12. #12 by cskok8 on Sunday, 29 September 2013 - 10:37 pm

    These people have the wrong perception. Money politics, commission, facilitation and services fees, CONsultation fees, under-table, over-table and no-table money are not considered corruption in Malaysia.

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