Corruption: Forms and Impact
This table shows the GDP per capita performance of Korea, Taiwan, Singapore and Malaysia. All Malaysians should be interested to know why we are performing so badly in comparison with our neighbours in spite of the fact that we have some natural resources, like fossil fuel, tin, rubber and palm oil which they do not have.
Source: Gross Domestic Product (GDP) per capita (various years), International Monetary Fund (IMF)
There are a number of reasons why our economic and human development performance has been so lacklustre. One critical factor that cuts across all explanations of causative factors is that of corruption and leakage.
Over the years, countless cases have been highlighted by members of the opposition and civil society activists, unfortunately with little or no coverage or analysis by mainstream media or accountability by the responsible authorities. Lately though it is encouraging to note that it is not the usual chorus of critics that are raising concerns. The National Economic Advisory Council (NEAC), established by the government with the specific mandate to formulate a New Economic Model (NEM) to drive Malaysia’s transformation into an advanced nation by 2020, has identified ineffective institutions and widespread corruption as the most significant barriers to growth.
Corruption comes in various forms, but where it counts most is where the government uses taxpayers’ money for the wrong reasons. Hundreds of billions of ringgit of public monies which could have been invested in the future of Malaysia – such as in education and healthcare – have instead been leaked out to line pockets of well-connected individuals. The costs of corruption are highlighted in the excerpt from the Government Transformation Programme below.
Bail-outs are a good example. Through the years, national funds have been used to save government corporations or failing companies that are politically connected. In the 1980s, then Prime Minister Dr. Mahathir Mohamed pushed for privatisation of national institutes or public corporations, arguing that that it would improve efficiency in the bureaucracy as well as reduce expenditures. Instead the reverse took place, with the government having to bail out corporations such as Bank Bumiputera Finance (RM2 billion), Star Light Rail Transit (RM3.3 billion), Putra Light Rail Transit (RM4.5 billion) and Malaysian International Shipping Corporation Berhad (RM1.5 billion) in the 1990s.
More recently, the government has come under flak for overpaying to the tune of several hundred million ringgit for two problem-prone submarines purchased from France. Speculation is rife that in these and many similar cases, Malaysian officials and politicians, involved in the deal, were keeping a significant cut for themselves. Critics have fingered the country’s defence bill not only as a major source of illicit outflows and kickbacks but also of the wrong development priorities. In the latest 10th Malaysian Plan, RM23 billion was allocated for defence and security.
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Kadir: Stop playing Santa, Najib
FMT Staff
| February 15, 2014
http://www.freemalaysiatoday.com/category/nation/2014/02/15/kadir-stop-playing-santa-najib/
Blogger Kadir Jasin says that Prime Minister Najib Tun Razak may even risk losing his job if he does not stop bleeding the Treasury with his 'cash is king' approach.
PETALING JAYA: Prime Minister Najib Tun Razak should stop playing Santa Clause or risk being booted out of office, said blogger Kadir Jasin.
In a blog post today, Kadir said that Najib must find a more sustainable way to help the poor as many Umno veterans he has met had voiced concerns on the prime minister’s ‘cash is king’ approach, which is bleeding the nation’s coffers.
“Najib has to acknowledge that things are not as rosy as being portrayed by the mainstream media. He has to stop lavishing scarce public funds on cash handouts and salary increases that do not contribute to productivity and sustainability,” said Kadir.
Since taking over as prime minister in 2009, Najib has introduced Bantuan Rakyat 1Malaysia (BR1M), which is a RM500 yearly aid to those earning less than RM3,000 a month.
He had also offered a variety of cash aid to civil servants and other types of programmes, from time to time, prior to the 13th general election.
Kadir said that Najib should address growing unemployment rate among Malaysian youths, which is affecting the bumiputras and the Indian primarily.
“In the age bracket of 15 to 19, almost 25.7% of Indians, 15.6% of Malays, 18.9% of non-Malay bumiputeras and 9.9% of Chinese were unemployed in 2012.
“In the 20-24 age group, 14.1% of the jobless were Indians, 9.9% Malays, 13% non-Malay bumiputeras and 7.1% Chinese. This explains the disproportionate involvement of Indians in criminal activities,” he said.
Kadir also claimed that the income gap between Malays and the Chinese has widened since 2009, erasing whatever progress made in the past.
“And the rural households, the bedrock of Barisan Nasional, are worse off now than in 1957 when compared to the urban households. Umno must remember that almost all the 88 parliamentary seats it won last year are in the rural areas,” he said.
Kadir is a former editor in chief for New Straits Times Press and a staunch ally of former prime minister Dr Mahathir Mohamad.
2014-02-17 12:01
I agree with you that corruption is an issue but so is it in many countries in the world. A recent report stated that corruption is a big problem in EU too. Furthermore, please quantify "hundreds of billions". Is it 100, 200 or 800 billions. Our Malaysian GDP is only about RM 1,000 billion a year. This sweeping statement debase your article and make it verging on the ridiculous.
Do not get me wrong, I support the eradication of corruption and agree that it has an impact on our economy, we could have been better.
2014-02-17 13:53
We will not able to eradicate corruption as it is grown like a cancer but we can reduce it with all our might and determination thru religion,education and most important feel proud by non involvement in corrupt pracrice!
2014-02-17 17:30
Malaysian has been mentally educated to "lead by example". What will happen when the Malaysia leaders is leading by such example.....would all our JUSA officers and g vt officers wifes drive 7 series and travelling in jets too....shift has happen....its not the g ovt servant now but UMNO clubssssss that get the deal money coffer...banjir, crises,..bantuan,perumahan...kedai 1...apa saja.. its through them,...the gvt servant just kambing hitam maah... so then..stories gows..
2014-02-18 12:35
assume Malaysia have 1/4 chinese times 28 mil capital = 7 mil, 1/2(25~55years) working power = 3.5million, but 1 million singapore PR.
Malaysia are exporting duck and laying golden egg on our neighbour.
Here i would like to say thank you Uncle Koon donating huge amount of scholarship for malaysian
i hope with the capable of uncle koon (ex gamuda, ijm, mudajaya leader)can do something, keep our youngster here to increase GDP, spent here, built their career here.
2014-02-18 23:44
Optimus, you are perasaan tak Uncle Koon ni semua pendapat dia jauh lari dari pendapat umum? Contoh saham, dia keras sangat dengan Jtiasa dan Muda sedangkan kita yang berguru saham pun takut dengan dua makluk ni. Yang kita ni lebih suka saham kuat lari. Politik pun terlebih kat opposition sedangkan ramai juga yang suka dengan kestabilan dan kesederhaan BN ni sebab saham kuat untung. Mungkin dia pikiran kat outer space sikit lah. Aku ingat Vision 2020 ni Tun Mahathir founder dia, sejak bila pulak Uncle Koon jadi founder? Pening abang pening.
2014-02-19 02:08
Abang terbaca artikel-artikel Uncle Koon ni tambah migrane gua. Sebab logic jadi tak logik, otak bijak jadi bodoh.
2014-02-19 02:14
Spending on defense is non essential ? China's frigates had intruded into our water to claim James Shoal. We need more submarines !!!
2014-02-19 08:47
UMNO2LONGKANG
Pasal tu kaum Cina lebih rela undi PAS dari UMNO...kerana PAS tidak guna isu kaum dan agama utk meraih undi tapi mendekati mereka dgn semangat yang dituntut dlm Islam itu sendiri...
http://drdzul.com/2014/02/17/pas-leaders-condemn-utusans-attack-on-non-malays/
PAS leaders condemn Utusan’s attack on non-Malays
2014-02-17 11:25