The Coalition for Business Integrity (CBI) called on Malaysia’s private sector to work together to stamp out corruption and commit to doing business with integrity to improve the business environment across the country.
The call to action was issued at a high-level conference held in Penang which brought together more than 100 business leaders, executives and government officials to gain expert insights and learn best practices on how to embed business integrity mechanisms in companies and their supply chains.
CBI chose to hold the anti-corruption conference in Penang for its strategic importance as Malaysia’s tech and med-tech hub. The Coalition has applauded the Malaysian government’s commitment to fighting corruption but stressed much work still needs to be done.
“From the ground, we can see that local business operators continue to suffer from the prevalent corrupt culture in both the public and private sectors which has contributed, among other factors, to the rising cost of living and an increasingly unsustainable business environment in some sectors,” said Mark Chay, Chief Executive Officer, Coalition for Business Integrity Berhad.
Chay called on the government and business sector to make a determined, joint effort to tackle corruption. The call to action comes more than three years after the federal government enacted Section 17A of Malaysian Anti-Corruption Commission Act enforced in June 2020.
Under this provision, a company can be considered guilty if any of its employees and/or associates give bribes for the benefit of the organisation. Commercial organisations may also be considered guilty whether or not upper management or its representatives knew about such corrupt acts. The only defence for such commercial organisations is to prove that they had “adequate procedures” implemented within their organisations for preventing corruption.
In support of private sector efforts to tackle corruption, UN Global Compact Network Malaysia and Brunei (UNGCMYB) launched new digital tools and localised resources that corporates and SMEs can access through its eLearning Academy.
The resources include a special course focused on anti-corruption in the Malaysian context which aims to educate companies and their workforces about how they can embed business integrity across their operations and supply chains.
“Understanding industry best practices and how to apply them in the Malaysian business context is critical for companies. We recognise the importance of this topic and have fully subsidised our localised course on anti-corruption to provide a valuable resource to companies working to demonstrate their commitment to fighting corruption and ensuring they operate with business integrity,” said Shanta Helena Dwarkasing, Director of Programmes, UN Global Compact Network Malaysia and Brunei.
To further guide the private sector, the three co-organisers – Coalition for Business Integrity, UN Global Compact Network Malaysia and Brunei, and the Malaysian International Chamber of Commerce and Industry – are jointly developing a whitepaper compiling key insights, challenges and opportunities highlighted at the conference, to be presented to the state government later this year.
