The 12th Malaysia Plan (12MP), starting with Budget 2022, must contain comprehensive and innovative measures to curtail unnecessary leakages and corruption, says Dato’ Seri Akhbar Satar, the Founder and President of the Association of Certified Fraud Examiners -Malaysian Chapter, in a statement today.
Holding a professorial chair at the Institute of Crime & Criminology and HELP University, the former Transparency International Malaysia President, says, “Leakages from the shadow economy, particularly the illegal cigarette trade cost the Government more than RM5 billion in uncollected tax revenue every year. It continues to weigh down the economy and negatively impact society at large,” he says.
He also says illegal cigarette kingpins and cartels are still at large and are getting bolder and more innovative in their operations.
“This situation is fuelled by corruption, and if left unchecked, the aspirations and targets set out in the 12MP will not be achieved,” he adds.
Akhbar explaines that as corruption undermines social development, political stability and a sustainable economy, it mainly threatens quality investors and decreases productivity that leads to a reduction in economic growth,
A case in point is Malaysia having dropped in rank and score in the Transparency International Corruption Perception Index 2020, with 51 out of 100 points, placing the nation at 57th place out of 180 countries.
As Budget 2022 is focused on improving governance frameworks and strengthening actions to protect and drive the recovery of lives and livelihoods for the people, rebuild the resilience of the economy and catalyse socio-economic reforms.
Dato’ Seri Akhbar foresees that illegal trade will expand exponentially in the foreseeable future.
Recently, Prime Minister Dato’ Sri Ismail Sabri revealed that a total of 580,000 households from the middle-income group have slipped into the bottom 40 per cent or B40 category due to the economic fallout caused by the Covid-19 pandemic.
“This will further fuel corrupt practices by criminal elements to take advantage of the demand for cheaper products. Therefore, long term planning and comprehensive execution to stamp out corruption must start now,” Dato’ Seri Akhbar concludes.
