Bribery and Corruption in Malaysia
Bribery is “the practice of offering something (usually money) in order to gain an illicit advantage.” http://dictionary.reference.com/browse/Bribery (7). Corruption is a moral pervasion, depravity or rottenness (6). Malaysian bribery is very common in their business practices and is accepted from a business level. Not only is it common it is also defended when it’s put into a negative light. According to Transparency International 2006 Bribe Payers Index the international anti-bribery laws still don’t serve as an authoritative force for countries like Malaysia (1). The Transparency International Corruption Perceptions Index (CPI) 2009 says that Malaysia’s corruption level rose significantly and they are now at their lowest ever level which is 56th (3). The 2009 Corruption Perception Index of Transparency International ranks Malaysia corruption at 4.5 (6). Some Reasons Bribery Exists in Malaysia
Mr. Nussbaum said in an interview at TI’s headquarters that “countries like Malaysia defend their companies by saying they are following local practice by paying bribes, and to do otherwise would interfere with national sovereignty. Mr. Nussbaum also stated that it also interferes with business function and that there needs to be tougher anti-bribery laws (2). Nussbaum brings forward that Malaysia does very little to enforce these Anti- Bribery laws when they passed laws banning bribery overseas. Some Effects of Bribery on Malaysia
Malaysia’s foreign direct investment attractiveness has even been tampered due to corruption and bribery (3). The World Bank says that Malaysia has lost its competiveness as a low cost producer and lacks investments to compete in more advanced industries (3). Bribery has had effects of impeding Malaysian growth up the value chain and achieving rapid growth with innovative products. The generic advantage of low cost high volume producing has been slowed down by middle income trap (3). Bribery has...