4 theSun | WEDNESDAY DECEMBER 10 2008

news without borders

Need to step up fight against corruption

TRANSPARENCY INTERNATIONAL RELEASES FINDINGS OF 2008 BRIBE PAYERS INDEX
by Maria J. Dass
newsdesk@thesundaily.com
PETALING JAYA: Malaysian businessmen
are highly critical of the government’s efforts
to fight corruption compared with those in
other Asia Pacific countries.
They also rated the police force as
the most corrupt institution with a Bribe
Payers Index (BPI) of 4 (1: Not all corrupt,
5: Extremely corrupt), according to
Transparency International’s (TI) 2008 BPI
findings released yesterday.
The business community also believes
the companies are highly involved in corrupt
practices in Malaysia and the region, and
political parties were singled out as the most
corrupt institutions in the Asia Pacific region
with a BPI of 3.6.
The outcome of the survey is similar
to the results in the Global Corruption
Barometer 2007, said Transparency
International-Malaysia (TI-M) president Tan
Sri Ramon Navaratnam.
“TI believes that while most of the world’s
wealthiest countries already subscribe
to a ban on foreign bribery, under the
Organisation for Economic Cooperation and
Development Anti-Bribery Convention, there
is little awareness of the convention among
the senior business executives interviewed in
the BPI,” he said.
“Therefore, it is crucial that governments
go beyond speeches and proclamations, and
show greater dedication to combat bribery
and corruption in spite of great resistance
by self-serving pressure groups whose main
interest is to benefit themselves even at the
expense of civil society. 26 developed and developing countries,
“Governments have to ensure that foreign including Malaysia. A minimum 100
bribery should be stopped at source and executives were interviewed in each country
make good on commitments to prevent and and the enterprises they represent were
prosecute such practices.” selected through a stratification process that
Navaratnam said TI-M believes that the took into consideration the size of firms,
Malaysian Anti-Corruption Commission their sector and location. Belgium and
(MACC) Bill and two other bills to be tabled Canada showed good results by sharing the
in the current parliamentary session will first place with a score of 8.8 out of 10.
help improve the poor public perception
at home and abroad that Malaysia has a
mediocre score and success in fighting
corruption. Practices prevalent
among
“It is important that all MPs support the companies from the
ir own
bills and improve them during the second countries, when op
era
reading and pass them with maximum their own continent ting in
or region
parliamentary and public support,” he said. Bribery to high ranking
officials or political
The survey was conducted among senior parties
business executives from companies in Malaysia : 42% of
Asia Pacific 92 respondents
: 47% of
Average (26 countries) : 763 respondents

Marginal rise Bribery to low level pub

41% of
2,292 respondents
lic officials to speed
things up
in salaries Malaysia

Asia Pacific
: 38% of
94 respondents

next year,
: 45% of
Average 769 respondents
: 43% of
2,430 respondents

says MEF Use of personal and fam

on public contracting
Malaysia :
iliar relationships

44% of
by Faith Labunda Asia Pacific 93 respondents
newsdesk@thesundaily.com : 44% of
Average 762 respondents
PETALING JAYA: Despite the global : 42% of
economic downturn, the Malaysian Employers 2,401 respondents
Assessment of govern
Federation (MEF) predicts an increase of ment action in the
fight against corruption
5.53% and 5.59% in salaries for executives and in Malaysia (100
respondents)
non-executives, respectively, next year. Very Ineffective
“Sixty-nine percent of the respondent Ineffective 27%
companies forecast that there will be a Neither 46%
salary increase for their executives and Effective 9%
non-executives in 2009,” MEF president Datuk Very Effective 12%
Azman Shah Haron said at the launch of 6%
Sectors in Malaysia per
MEF’s newest publications yesterday. ceived to be
affected by corruption
Originally forecast at 5.78% for executives (1: Not all corrupt, 5: Extr
and 5.85% for non-executives, the revised emely corrupt)
Police
figures were slightly reduced after MEF Political Parties 4
conducted a follow-up survey among the 202 Registry and Permit Service 3.8
s 3.6
participating member companies following Parliament/Legislature
the economic crisis. The estimate is lower Customs 3.3
compared with those of previous years. 3.3

It was revealed that industries forecasting

a high salary increase for its executives in
2009 are:
» Machinery manufacturing (7.50%)
» Pharmaceutical/ Medical/ Textile
Products (7.00%)
» Logistics/ Port/ Warehouse/ Transport
Services (6.30%)
» Banking/ Insurance/ Investment (6.25%);
and
» Business Services (6.19%).
Industries forecasting a high salary
increase for non-executives are:
» Banking/ Insurance/ Investment (6.75%)
» Business Services (6.06%)
» Non-Metallic Mineral Products (5.92%)
» Food and Beverage (5.86%); and
» Petroleum/ Chemical and Wholesale/
Retail and Trading/ Direct Selling
(5.81%).
Overall, compared with the manufacturing
sector, the non-manufacturing sector is
expected to see a higher salary increase for
both its executives and non-executives.
On bonus payment, 72.1% of the respondent
companies forecast that bonuses would be
granted to non-executives as opposed to the
59.8% of companies who forecast granting
bonuses to executives in 2009.
After adjustment to the receding economy,
non-executives can look forward to an
estimated 1.78-month bonus while executives
will be looking at a 1.98-month bonus.
Asked for MEF’s expectations regarding next
year’s retrenchment rate, its executive director,
Shamsuddin Bardan, said: “If it does happen,
the first to go will be the foreign workers ... in
some ways, Malaysian workers are a little more
protected.”
He said that based on recent trends,
INTERVIEWS VIEWS
retrenchment numbers can reach an estimated
total of 2,000 to 3,000 workers if the economy
failed to recover.
“In the initial period, we expect the
manufacturing sector to be hit the hardest,
especially those in the export-oriented and
electronic and electric sectors,” he said.
Most of the forecasts are based on MEF’s
latest publications:
» MEF Salary Survey for Executives 2008;
» MEF Salary Survey for Non Executives
2008;
» MEF Medical Benefits Survey 2008; and
» Analysis of Collective Agreements and
Awards on Terms and Conditions of
Employment 2007.

PM on why defence spending must continue ... the politics of the

KUALA LUMPUR: Prime
Minister Datuk Seri Abdullah
Ahmad Badawi said yesterday
defence spending must continue
despite the gloomy economic
outlook as the nation’s security
cannot be compromised.
At the launch of the Langkawi
International Maritime and
Aerospace Exhibition (Lima ‘09),
Abdullah, who is also the defence
minister, said the recent incident
in the Gulf of Aden, where two
Malaysian tankers were seized
and their crews taken hostage,
showed that governments cannot
afford to relax when it concerns
national security and the lives of
their citizens.
“We need to be vigilant and
continue to improve the overall
defence and security, especially
along the Straits of Malacca and
in East Malaysia,” he said.
He said that despite the
gloomy economic outlook,
analysts believe Asean’s defence
and security spending will exceed
US$350 billion in the years
leading to 2020.
Abdullah said Asia’s defence
market poses many opportunities
in the medium and long term for
suppliers over the next 15 years
as regional governments seek to
modernise their navies, air forces
and security agencies.
Lima ‘09 is scheduled to be
held in Langkawi from Dec 1 to 5
next year. – Tim Leonard
nation has changed
and they are no longer as
dominant as they were.
The sooner they accept
that, and re-think some of
their strategies, the better.”
Khalid Abdul Samad
(PAS-Shah Alam)