LAST year, Malaysia’s Transparency International Corruption Perceptions Index rating declined significantly from 5.1 to 4.5. In other words, the perception is that Malaysia is becoming more corrupt. Why is this significant? Given the increasing penalties being legislated in many countries around the world, this may have a direct impact on decisions to invest in Malaysia.
A World Bank study estimates that the cost of corruption to Malaysia could be in the vicinity of RM10bil per year, an amount equivalent to 1% or 2% of GDP. In the Port Klang Free Zone (PKFZ) debacle alone, the cost to taxpayers was RM4.6bil.