3d: Anti-corruption

Preamble

Left unaddressed, corruption and poor governance are national challenges that can undermine democracy, the rule of law, and economic development in the country. Towards fostering conditions for a fair, just, and inclusive nation, the proposals in this policy area focus on addressing corruption systemically through multiple and simultaneous approaches.

I: Growing Income Disparity Between Top 20% & Bottom

40% Households

Real income and purchasing power parity in Malaysia have significantly deteriorated, in particular for the bottom 40% (B40) households, whose cost of living is especially high in urban areas. The growing increase in household income inequality over the years has widened the gap between the rich and the poor, while inadvertently worsening social instability.

1. Introduce basic income strategies.

i. Raise B40 salaries as part of comprehensive wage and administrative reforms covering both private and public sectors. A guaranteed acceptable income is a necessary condition for moral integrity and resistance to corruption.

ii. Provide an income safety net for B40 households. Ensure that all citizens have access to certain fundamental goods, especially education and universal healthcare.

(John Ku, Proposal 3D-1)

II: Limited Access to Information

The lack of transparent media and access to information enables the election of corrupt politicians. Transparency International cites limited access to information on matters of public interest, stalled progress in institutional reforms, and a lack of political will to fight institutional corruption as major causes contributing to the downgrade of Malaysia’s ranking in its Corruption Perceptions Index, falling six places from the previous year to fifty-seventh in 2021.

2. Establish a free and independent civil society and media.

i. An independent media and an active civil society movement are crucial to promoting freedom of opinion and expression that, in turn, can build a resilient electorate. A free and independent civil society and media empower the public as agents to keep the powerful in check. Independent journalists also complement the work of anti-corruption agencies.

ii. Repeal the Sedition Act 1948 and OSA. The former prevents open and transparent discussions of issues that are classified as sensitive by the government, while the latter subjects journalists and sources who expose wrongdoings to heavy penalties.
iii. Review the CMA to remove problematic provisions on content regulation and further refine and revise rules on ownership and licensing for media companies. Such revision may help prevent large media players, or those with direct political links, from dominating the market and instead encourage more independent content producers to enter into the field.

(John Ku & Len Hew, Proposal 3D-2)

III: Money Politics

Malaysia’s political system is undermined by the deep-seated problem of money politics, especially on the buying of votes during general elections and internal party elections. Money politics also refers to politicians and parties being involved in business, whether directly through active ownership of companies or indirectly via proxies or trustees, which causes unfair competition.

3. Introduce a Political Funding Act.

This Act must include the rules and procedures for a political party to raise money, how to keep that money, and, most importantly, how that money can be spent. Accounts must be audited annually, and financial reports made available to the public. A three-pronged approach should be taken:

i. Institute reforms in political parties to enhance transparency and accountability of funds.

ii. Devise a government policy that fairly allocates direct and indirect financing of politics.

iii. Empower the public through civic and voter education.

(John Ku, Len Hew & Rashid Ahmad, Proposal 3D-3)

IV: Deteriorating Public Perception of Corruption

Public perception of corruption in Malaysia has rapidly deteriorated over the last three years. According to the Corruption Perceptions Index by Transparency International, Malaysia scored 53 out of 100 in 2019, the best score in a decade but slid down to 48 in 2021. A systemic, whole-of-society response is critically required to address this trend.

In the context of systemic corruption, the purpose of corruption may also be seen to serve broader social and political functions besides accruing private gain. Individuals engaged in corruption may be at least partially driven by a desire to fulfil a social norm (e.g., an expectation to help one’s race or religion), to accomplish political goals, or to attain some other end (e.g., maintain political stability and peace). In such situations, corrupt actions are intertwined with wider political or power structures and social norms, and thus become deeply rooted and self-reinforcing.

4. Create a national integrity system.

(Selina Chean, John Ku & Zulkifli Hilmi, Proposal 3D-4)

Social norms, entrenched interests, and collective action issues make corruption highly resistant to reform. The existing corrupt equilibrium must be disrupted by strengthening the pillars of a national integrity system which includes: an active civil society, corporate governance, judicial independence, public administration reform, and demonstrated public commitment to embedding anti-corruption values. Some key initiatives based on the pillars are identified below:

i. Repeal the OSA.

ii. Integrate anti-corruption values into education for all secondary schools.

iii. Review the appointment of directors and shareholders of GLCs.

iv. Implement declaration and monitoring of assets in companies and increase protection of minority shareholders’ interests.

v. Increase control of monopolies and quasi-monopolies.

vi. Strengthen anti-corruption legislation and institutions.

vii. Enforce a code of ethics in the public service.

viii. Implement declaration and monitoring of assets for top civil servants and enforce punishment for major offenders, including senior officials.

ix. Guarantee a free and independent media.

x. Ensure anti-corruption agencies can work independently.

xi. Appoint politicians who commit to taking a public oath to support anti-corruption and demonstrate said commitment by maintaining public accountability for their actions.

xii. Strengthen monitoring and evaluation roles in all public services and ministries.