Government procurement is an area subject to corruption, and closed-door
negotiations are allowed for public procurement in cases where it is
possible to help local companies obtain a foothold in the economy
through the acquisition of a tender. Government favouritism towards Bumiputera (ethnic Malays and other Malaysian indigenous peoples) companies for small public contracts continues to exist. Moreover, the
policies of awarding huge infrastructure projects to selected
Bumiputera companies without open tender and of giving special licences
to the same group has encouraged corruption between public officials and
domestic and foreign companies. In order to reduce corrupt practices
and enhance transparency in the procurement process, MyProcurement, a new government tender portal, was launched in April 2010.
Thursday, February 27, 2014
Business Corruption in Malaysia
The level of corruption in Malaysia is
considered relatively low in the region of South East Asia, and
corruption is punished under existing laws such as the Malaysian Anti-Corruption Commission Act. The Malaysian Anti-Corruption Commission (MACC)
was established to provide for offences and penalties for private and
public sector corruption. However, the overall effectiveness of the
Commission is hampered by the lack of capacity and technical skills in
some areas. The government of Malaysia recognises corruption as an
important problem in the country and has taken steps to address the
problem through, for example, the introduction of the Corporate Integrity Pledge in 2011 and the Whistleblower Protection Act in 2010.
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