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Already, one MACC official was arrested on suspicions that he was being courted with financial inducements to cover up ongoing probes into people close to Muhyiddin.
JUST HOW WIDESPREAD CORRUPTION HAS BECOME
The widening anti-corruption net in recent weeks has exposed a disturbing truth in Malaysia. Money, politics and business have long intermingled at a huge cost to the economy, but just how widespread it has become means serious reform will be needed.
A central plank for the government under Mahathir Mohamad that came to power in mid-1981 was Malaysia’s ambitious privatisation policy. While privatisation was generally in line with economic policy thinking at that time, it had been criticised as promoting corruption, where companies aligned to the ruling government coalition were awarded the rights to manage state assets or to develop, implement and manage new public works projects and services under long and lucrative concession periods.
By the time Najib Razak took over as prime minister in late March 2009 from Mahathir’s successor Abdullah Ahmad Badawi, the Malaysian economy had become heavily politicised, leading to serious inefficiencies.
Contract awards, such as the construction of the mass rail systems, railway networks and toll road concessions were often considered to be inflated to extract political premiums. Previously privatised companies were also re-nationalised, such as national carrier Malaysia Airlines in 2014.
Najib also set up 1MDB, the state-owned investment fund that eventually led to his downfall. Funds raised from multi-billion-dollar bond issues flowed back into Najib’s private accounts to finance his political campaigns for his then ruling party, United Malays National Organisation (UMNO). The former prime minister began serving his 12-year jail sentence on corruption and money laundering charges in August 2022.
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Commentary: Fixing Malaysia’s corruption problem will need more than a clampdown
[ad_1]
Already, one MACC official was arrested on suspicions that he was being courted with financial inducements to cover up ongoing probes into people close to Muhyiddin.
JUST HOW WIDESPREAD CORRUPTION HAS BECOME
The widening anti-corruption net in recent weeks has exposed a disturbing truth in Malaysia. Money, politics and business have long intermingled at a huge cost to the economy, but just how widespread it has become means serious reform will be needed.
A central plank for the government under Mahathir Mohamad that came to power in mid-1981 was Malaysia’s ambitious privatisation policy. While privatisation was generally in line with economic policy thinking at that time, it had been criticised as promoting corruption, where companies aligned to the ruling government coalition were awarded the rights to manage state assets or to develop, implement and manage new public works projects and services under long and lucrative concession periods.
By the time Najib Razak took over as prime minister in late March 2009 from Mahathir’s successor Abdullah Ahmad Badawi, the Malaysian economy had become heavily politicised, leading to serious inefficiencies.
Contract awards, such as the construction of the mass rail systems, railway networks and toll road concessions were often considered to be inflated to extract political premiums. Previously privatised companies were also re-nationalised, such as national carrier Malaysia Airlines in 2014.
Najib also set up 1MDB, the state-owned investment fund that eventually led to his downfall. Funds raised from multi-billion-dollar bond issues flowed back into Najib’s private accounts to finance his political campaigns for his then ruling party, United Malays National Organisation (UMNO). The former prime minister began serving his 12-year jail sentence on corruption and money laundering charges in August 2022.
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