Malaysia’s corruption at critical level – watchdog – Forbes.com

 

Corruption in Malaysia has reached a critical level as the country falls in international rankings, a graft watchdog announced Thursday, warning the government to act or lose its competitiveness.

The UN’s Asia-Pacific Human Development Report highlighted an International Country Risk Guide finding which saw Malaysia decline from a score of 4.00 in 1996 to 2.38 in 2006, with a lower score representing greater corruption.

‘It is worrying because it is a business index which reflects on our domestic investment, foreign direct investment and confidence in the economy,’ said Ramon Navaratnam, country head of graft watchdog Transparency International.

‘Corruption is at a critical level here,’ he said.

He said corruption in Malaysia was deeply entrenched in the negotiation of contracts. Bribes were paid to government officials to speed up trade licences, for police protection and for loan transactions.

‘Our economic structure, the way we do business here, needs to be reviewed, renewed and redesigned,’ Navaratnam said, warning that Malaysia could lose its competitive edge if it remained ‘complacent and inefficient.’

‘Malaysia can do much better if there is stronger political will to fight corruption. Given the rapid pace of globalisation and increasing economic competition among Asian countries, it’s time to pull our socks up,’ he said.

Prime Minister Abdullah Ahmad Badawi was elected on an anti-corruption platform in March 2004, but opposition leaders say progress has been slow.

Following his government’s recent drubbing in national polls he announced several measures to tackle corruption and reform what many view as a compliant judiciary.

A royal commission recently authenticated a tape showing a top lawyer brokering judicial appointments with the help of politicians during the premiership of former prime minister Mahathir Mohamad.

Earlier this week, a senior judge said judges were indoctrinated and threatened with dismissal to pressure them into making pro-government decisions during the former premier’s rule.

Malaysia’s corruption at critical level – watchdog – Forbes.com

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‘Rising inflation is also due to corruption’

 

The rising inflation rate in the country is unacceptable to Malaysians because it is not due to the price hikes alone but also caused by corruption, Transparency International president Tan Sri Ramon Navaratnam said.

He said the Government needed to be more aggressive in its fight against corruption following inefficiency issues that had a greater impact on the lives of the people especially the poor and disadvantaged.

“The Government is giving treatment to this problem of corruption but I think the dosage needs to be stronger. The Government is going about it in the right way but the illness is quite serious,” he told reporters after giving an overview of the United Nations Development Programme’s Asia-Pacific Human Development Report “Tackling Corruption, Transforming Lives” at a hotel here yesterday.

He said the report revealed that between 2005 and 2007, Malaysia’s score on Transparency International’s Corruption Perception Index 2007 improved slightly from 5.05 to 5.10.

The report also examines various internationally recognised measures of corruption including “hidden,” “street” and “petty” corruption, which is often referred to in Malaysia as duit kopi (coffee money).

“Inefficiency breeds corruption. For as long as there is inefficiency, delay in applications of licences involving private sector, for instance, will create opportunity for petty corruption,” he said adding that petty corruption had a greater impact on the lives of the poor.

According to the report, police were the most corrupt public institution, rated at 3.8 (where 1 is the least corrupt and 5 most corrupt), followed by registry and permits at 2.8, judiciary 2.8 and tax offices 2.5.

“The people are affected when we get poor health service, poor education because of corruption and greed.

“It’s a fact that the majority of the poor in the country are Malays and the NEP (New Economic Policy) is being seriously undermined by corruption.” He also asked why the Government had not established Freedom of Information Act, which would give the public access to crucial information on government activities.

‘Rising inflation is also due to corruption’

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