This post was written by Chad Merchant
 

AS MALAYSIA STRIVES TO BECOME FULLY DEVELOPED BY 2020, THE COUNTRY HAS NOT ONLY TAKEN ON THE CHALLENGE OF COMBATTING CORRUPTION, IT HAS DONE THIS SO EFFECTIVELY THAT MALAYSIA IS BECOMING A MODEL TO OTHER COUNTRIES IN THEIR OWN STRUGGLES AGAINST GRAFT. EDITOR CHAD MERCHANT TAKES A CLOSER LOOK.

Malaysia recently played host to the 6th International Association of Anti-Corruption Authorities (IAACA) Annual Conference and General Meeting at the Kuala Lumpur Convention Centre. The IAACA is the international organisation tasked with the objective of implementing the United Nations Convention Against Corruption, and one of its executive committee members is the Chief Commissioner of the Malaysian Anti-Corruption Commission (MACC), Dato’ Sri Abu Kassim Mohamed.

Malaysia has taken a serious stand against the scourge of corruption, and the efforts of the MACC to combat graft in both the public and private sectors has not only made a material difference in Malaysia’s appeal to foreign investors, but has positioned the country favourably as a model for other countries seeking to improve their own standing in the fight against corruption.

In Southeast Asia, the twin exemplars of effective anti-corruption efforts have long been Singapore and Hong Kong. Those countries’ efforts in engendering a society largely free of graft have contributed directly to their now-perennial standing as not only regional, but worldwide economic powerhouses. Indeed, Hong Kong and Singapore are ranked as the top two best cities in the world in which to do business.

And now, signs are emerging that the baton is being passed to Malaysia, as this nation sprints towards its goal of full development and high-income nation status by 2020. The Malaysian government have placed critical importance on the fight against corruption as a means to the end of achieving the goals set forth in the country’s Economic Transformation Programme.

Officials in Malaysia have recognised the danger that unchecked corruption poses to the nation and were doubtlessly proud to have the IAACA Conference in Kuala Lumpur this year. One of the featured delegates and speakers was Michael Hershman from the United States. Hershman, the co-founder of Transparency International, an NGO that, since its inception nearly 20 years ago, has been a driving force for putting corruption at the forefront of discussions regarding advancement of countries and economies. Hershman’s efforts have helped governments genuinely recognise and accept that corruption is one of the primary obstacles to economic development. Indeed, when looking at Transparency International’s 178-nation Corruption Perception Index, it’s easy to see a direct correlation between a nation’s economic strength and its level of success in combatting corruption.

I spoke with Hershman about his thoughts on the MACC’s efforts and what parallels he’s seen with efforts in the US. “Malaysia has developed a very good anti-corruption infrastructure,” he noted. “I believe Malaysia is actually in a good position to take the lead and be a model.”

Hershman dismisses naysayers who erroneously think that corruption is too imbedded here to be effectively curbed. “Look at Hong Kong,” he explained. “A generation ago, corruption was widespread there. But through education and enforcement, over time, things changed. And that’s the model Malaysia is effectively following.” He does concede that there are challenges inherent in the process, though. “Petty corruption is, by its nature, quite difficult to detect and deal with. You’re looking at what’s largely a ‘cash business’ where small amounts of cash money are being slipped through. The best way to address that is through education, actually changing the culture and mindset of the people. Obviously, that takes time.”

To this end, Malaysia has taken real steps to reach out to the younger generation and lay a foundation for a future society free of bribery and graft. To achieve this, the government has created an MACC joint force called the Anti-Corruption Secretariat which liaises closely with numerous universities and centres of higher learning throughout the country to communicate the positive aspects of anti-corruption efforts to the next generation, recognising that instilling values of integrity and dignity in today’s adolescents – who are tomorrow’s leaders – is of paramount importance.

Hershman continued, saying that whilst petty, low-level corruption could be addressed through broader education initiatives, grand corruption – which can even extend to organised crime and large-scale money laundering schemes – is by nature easier to track and detect. Transparency International cofounder Michael Hershman Therefore, as he noted, Malaysia has made material progress in combatting this type of corruption.

In drawing parallels with his own country’s anti-corruption efforts, Hershman praised Malaysia, but mentioned that the MACC was still a work in progress. Specifically, he named two measures in the US which he feels should be implemented here to further reduce the opportunity for corruption. “Political funding issues here simply must be addressed,” he stated. “Reporting requirements are minimal, corporations are almost expected to help candidates, and many times, as with petty corruption, it’s a cash-in-hand sort of proposition, so there’s little or no transparency. Campaign finance reform is needed.”

Hershman also emphasised the need for a law similar to the US’s Freedom of Information Act, a law signed in that country in 1966 which mandates the release and disclosure of certain government information to the public that it serves.

Overall, however, Hershman stressed that Malaysia was becoming a regional leader and developing a model for other high-risk countries to follow in their own fight against corruption. “Malaysia is doing the right things to improve conditions and secure its economic future,” he praised, “and it’s worth noting that the Malaysian chapter of Transparency International is very active, and we feel that the MACC’s efforts to address and fight corruption are sincere, genuine, and effective.”

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The 6th IAACA Conference was held 4-7 October 2012. For more information, please visit the MACC’s website at www.sprm.gov.my.

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Source: Senses of Malaysia Nov-Dec 2012

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