Why are companies in Malaysia poor at background checks for hires?

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Companies in Malaysia Exhibit Weaknesses in Candidate Background Screening Processes

Companies in Malaysia frequently demonstrate inadequate practices when conducting background checks on prospective employees, contributing significantly to the prevalence of individuals with fraudulent academic credentials securing positions. This issue is exacerbated by a general reluctance among Malaysian businesses to pursue legal recourse or file police reports against employees found to possess fake qualifications. Consequently, individuals with misrepresented degrees often face minimal repercussions, allowing them to transition to new employment in other organizations without their fraudulent history being flagged.
Limited Legal Action Against Falsified Qualifications

A notable aspect of the Malaysian hiring landscape is the infrequent initiation of legal proceedings or police reports against employees discovered to have submitted fake academic qualifications. This lack of enforcement means that individuals who have presented fraudulent degrees face no formal record of their deception. As a result, these individuals can readily secure employment with other companies, perpetuating a cycle where misrepresented qualifications go unaddressed within the workforce.
Poor Background Checking Practices Identified

Datuk Akhbar Satar, managing director of Akhbar and Associates, has identified Malaysia as being "one of the worst" countries globally regarding the issue of fake degrees due to deficiencies in background checking practices. This suggests a systemic weakness in how companies vet potential hires, contributing to the ease with which individuals can present falsified credentials. Such practices allow for a significant number of job applicants, estimated by Akhbar and Associates to be up to 7%, to present fake degrees, while an additional 10% to 15% hold qualifications from unaccredited institutions.
Widespread Application for Senior Roles

The problem of fake degrees is not confined to entry-level positions; individuals with such falsified qualifications are actively seeking and obtaining senior management roles across a diverse range of industries in Malaysia. Sectors including banking, clinics, and hospitals have seen applicants with dubious academic backgrounds vying for positions requiring significant expertise and trust. This trend highlights a critical vulnerability in the hiring processes of prominent Malaysian organizations.

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Why are companies in Malaysia poor at background checks for hires?

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