Can Malaysia save 20 per cent on operating expenditure via anti-graft measures?

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Pakatan Harapan Proposes Significant Savings Through Anti-Graft Measures

Pakatan Harapan's Alternative Budget 2017 asserts that Malaysia could achieve a 20 per cent saving on the nation's operating expenditure by implementing robust anti-corruption strategies. The opposition coalition, comprising PKR, DAP, and Parti Amanah Negara, estimates that the introduction of anti-bribery systems and processes within the government, requiring an investment of approximately RM20 million, could potentially decrease public sector corruption by 30 per cent, translating to an estimated RM6 billion in savings. These projected savings are rooted in the belief that stringent yet cost-effective anti-corruption management practices can yield substantial financial benefits.
Projected Savings Based on Empirical Data

The coalition's confidence in achieving these savings is grounded in empirical studies of the Auditor-General's reports, which they suggest indicate that wastage and corruption account for 20 per cent to 25 per cent of the national expenditure. Pakatan Harapan posits that a focused effort to combat corruption and wastage, coupled with the complete adoption of an anti-bribery system, could result in immediate savings of 20 per cent within a single fiscal year. Furthermore, they anticipate that the remaining 5 per cent could be eliminated in the subsequent year, indicating a phased approach to realising the full financial benefits.
Proposed Anti-Corruption Mechanisms

To achieve these projected savings, Pakatan Harapan has put forth several specific anti-corruption measures. These include mandating risk, probity, and competency assessments for all potential contractors and joint venture partners involved in government procurement processes. Additionally, they propose that the approval of invoice payments should require the sign-off from more than one official, irrespective of their seniority, to enhance accountability and prevent fraudulent transactions.
Strengthening Enforcement and Whistleblower Protection

The Opposition has also called for the strict enforcement of the Malaysian Anti-Corruption Commission's (MACC) No Gift Policy across all government agencies and government-linked corporations (GLCs), advocating that all gifts should be legally considered as bribes. A key element of their proposal is the establishment of an effective whistleblowing system designed to protect the confidentiality of individuals who report misconduct and ensure they are shielded from retaliation. To this end, they advocate for the strengthening of the Whistleblowers Protection Act 2010.
Addressing Regulatory Practices and the "Revolving Door"

Further recommendations include enhancing the integrity of regulatory bodies by having agencies like the MACC conduct site visits in rotating teams to mitigate the risk of overly close relationships forming between regulators and regulated entities. To combat the issue of the "revolving door" phenomenon, where individuals move between regulatory roles and the private sector they previously oversaw, Pakatan Harapan suggests implementing a policy that disqualifies regulators from working for the private industry they regulated for a specified period. A similar restriction is proposed for experts transitioning from the private sector to public service roles.

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Can Malaysia save 20 per cent on operating expenditure via anti-graft measures?

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