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Top-down approach needed to transform landscape of Malaysia's fight against corruption

KUALA LUMPUR: Improving the landscape of Malaysian society in combating corruption necessitates a top-down approach, said the Centre to Combat Corruption and Cronyism (C4 Centre).

Its chief executive officer Pushpan Murugiah said the government must prioritise institutional reform to establish systems that prevent corruption and money politics from the outset.

"Chief among these would be tabling the Government Procurement Act, as well as the Political Financing Act, together with guaranteed funding for all constituencies through local governments," he said.

He said introducing a law to regulate and ensure transparency in the processes by which the government hires private entities for infrastructure projects and the purchase of goods and services would minimise the risk of collusion between the public and private sectors.

"Reports by the Auditor-General, Public Accounts Committee, and investigative journalists have consistently shown that government procurement is one of the areas most vulnerable to corruption, costing the public millions in leakages, unjustified excess payments, and budget inflation every year.

"This issue is related to political financing, as government procurement is often used by politicians to expand their influence by ensuring private companies receive lucrative government contracts in exchange for loyalty and donations to their political parties."

It would be a disservice to anti-corruption efforts to frame corruption in Malaysia as merely an interpersonal issue, he said.

Instead, it is vital to address money politics as a primary factor contributing to corruption as a societal phenomenon.

"Money politics refers to a political system that operates primarily on the accumulation and distribution of money among political parties and politicians."

This leads to other issues such as patronage politics, cronyism, and nepotism, where financial incentives dominate political relationships, including through donations or appointments to key decision-making roles in government-linked companies, he said.

He said there is an urgent need for a Political Financing Act to regulate and ensure transparency in the mechanisms through which political parties are funded.

Pushpan highlighted how unregulated political financing exacerbates problems, such as members of parliament using funding for constituencies as bargaining chips to switch allegiances, guaranteeing more funding in return.

"While this may appear noble and legitimate, the cultural spillover effect is the normalisation of cash handouts and direct gifts to constituents by MPs.

"This becomes the primary method of winning elections, overshadowing their responsibility to represent public concerns in parliament and support beneficial reforms at the federal level.

"Guaranteed federal funding for all constituencies through existing mechanisms like local governments and government welfare—adjusted using metrics such as population size and specific demographic needs—would ensure MPs' loyalties are not driven solely by money or political connections."

He further emphasised that a society-wide shift in culture against corruption requires institutional reforms that encourage and facilitate public participation in governance.

"This would entail the establishment of an Ombudsman office to allow the public to submit complaints and voice concerns over potential maladministration.

"Additionally, the tabling of a Right to Information Act would enable members of the public to request information from the government, uncover inconsistencies in public spending, and hold authorities accountable."

The Whistleblower Protection Act 2010 must also be amended to provide greater protection to whistleblowers, fostering a culture where individuals feel safe reporting corruption within organisations they are part of.

These measures, taken together, would empower Malaysians to actively participate in the fight against corruption, fostering an anti-corruption mindset within the public.

Meanwhile, Pushpan pointed out that progress has been slow despite Prime Minister Anwar's pledge to prioritise tackling corruption and promoting good governance.

"Although legal and institutional reforms can be lengthy processes, there have been several concerning examples of backsliding, such as retaining the Sedition Act 1948 and the worrying expansions of the Police Act 1967 and the Communications and Multimedia Act 1998.

"These decisions directly hinder the development of a more open government and limit freedom of speech and expression, which are crucial for uncovering public sector corruption."

He, however, said that there were areas where the government had made some improvement. These included amendments to the Audit Act 1957, which granted the Auditor General greater oversight powers to detect public financial mismanagement; the introduction of beneficial ownership reporting under the Companies Act 2016; and revisions to the Trustee Act 1949 and the Trustee (Incorporation) Act 1952 to enhance oversight of express private trusts and incorporated trusts. Other improvements included amendments to the Anti-Money Laundering, Anti-Terrorism Financing, Anti-Restricted Activity Financing, and Proceeds of Unlawful Activities Act 2001 to expand the regulatory framework for detecting financial crimes.

"However, other key reforms that have been promised—such as the introduction of a Malaysian Ombudsman, a Right to Information Act, the separation of the Attorney-General and Public Prosecutor offices, reforming the Malaysian Anti-Corruption Commission, and amendments to the Whistleblower Protection Act 2010—are still in development.

"The longer these reforms take, the greater the public trust deficit toward this administration, particularly given the backsliding on other regressive laws," he added.

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