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Corruption Perception Index: Malaysia Continues to Deteriorate

Press Releases

Tuesday 31 January, Kuala Lumpur – Transparency International (TI) the global anti-corruption coalition today released its 2022 Corruption Perceptions Index (CPI) drawing on surveys and expert assessments measuring the perceived level of corruption of public sectors in 180 countries and territories around the world.

Scandinavian countries continue to dominate the ranking, with Denmark, Finland, Norway and Sweden among the top 10 “cleanest” countries, together with New Zealand and Singapore from the Asia Pacific region. At the bottom of the index, the worst performers were Venezuela, Syria, South Sudan and Somalia.

Malaysia’s 2022 CPI score deteriorated to 47 points, where 0 is perceived to be highly corrupted and 100 is perceived to be very clean. From a score of 53 in 2019, Malaysia’s score has fallen 6 points over the past 3 years. This drop is statistically significant, indicating that we are heading in the wrong direction with regards to fighting corruption, supporting human rights and democracy in the public sector.

Transparency International-Malaysia (TI-M) believes the following are possible reasons contributing to this continued deterioration:

  1. Very limited action from previous governments to curb political corruption and strengthen our Human Rights record. As an example, the Political Financing Act which was scheduled to be tabled in Parliament by the last two governments has yet to be realised. Also, the draft IPCMC Bill was revised to an ineffective version renamed the IPCC Bill. Tragically custodial deaths still occur in police lock ups even after an RCI (Royal Commission of Inquiry) was conducted in 2015.
  2. Lack of political will to reform the MACC into a more independent and effective anti-corruption institution and made directly accountable to Parliament. Civil society has been calling for this reform since 2015.
  3. Unduly wide interpretation of the Official Secrets Act leading to a lack of transparency on matters of public interest such as directly negotiated contracts. The ongoing RM9 billion Littoral Combat Ship (LCS) project by the Ministry of Defence is a typical example of poor governance in public procurement – lack of competitive bidding, limited information disclosure, weak financial oversight and a failure to act on red flags.
  4. Various court decisions in which the court gave a DNAA (Discharge Not Amounting to Acquittal) for certain individuals charged in high profile corruption cases may have given rise to a negative perception about how the legal process works. Clearer clarification from the AG’s Chambers could have mitigated against such a perception.
  5. Poor implementation with the accompanying lack of measurable results of the National Anti-Corruption Plan (NACP) which was launched in 2019 as a 5-year plan with clear initiatives and targets to address corruption, notably in the public sector. Given that its success lies in its implementation, TI-M has repeatedly called for the civil service to be fully responsible and accountable for this. Unfortunately, with the NACP due to end this year, we have seen very limited results.
  6. Continued adverse findings in the Auditor General’s Annual Report on wrongdoings and poor governance practice by government officials. What is troubling is that these findings appear to be repetitive and remain unpunished, which can create a culture of impunity within the civil service. It is crucial that our lawmakers support amendments to the MACC Act to include “Misconduct in Public Office”, which will hold public officials accountable for their actions and decisions.

The government of Prime Minister Dato’ Seri Anwar Ibrahim came into office in November 2022 with clear priorities being expressed. He highlighted Malaysia’s precarious fiscal position which requires immediate attention. The Prime Minister also stated his commitment to practicing good governance, transparency, integrity, and accountability in his government. TI-Malaysia believes that both goals are inter-related.

Reducing corruption, leakages, wastage and non-viable projects will help improve our fiscal position. It will also make Malaysia a more attractive destination for foreign investment. Finally, a public sector that practices good governance will also translate into better CPI scores for Malaysia moving forward.

Decisive and affirmative action to accelerate institutional reforms will go a long way towards improving our governance environment. These include:

  • Practice Transparency with Information Disclosure
  • Improve Accountability in Public Administration
  • Introduce New Legislation to Strengthen Governance
  • Reform the MACC into an Independent Institution
  • Encourage Investigative Journalism
  • Reintroduce Local Council Elections

Further details on these reforms are described in our slide presentation.

TI-Malaysia calls on the government to take firm, clear steps necessary to address our declining CPI score without compromise. Any delay will have long lasting negative impact on our competitiveness as a nation and our goal to be a nation which values ethics and integrity.

 

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Note to Editors: For clarification on any and all official statements from Transparency International – Malaysia (TI-M), kindly refer to its President, Dr Muhammad Mohan (mmohan@transparency.org.my). For more information on Corruption   Perception Index, visit www.transparency.org/research/cpi .