Malaysia Country Profile

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Business Corruption in Malaysia

Malaysia Flag, corruption

Corruption in Malaysia is relatively low in comparison to the rest of East Asia. Anti-corruption laws are mainly contained within the Malaysian Anti-Corruption Commission Act, which covers a range of offences (including active and passive briberyextortion and abuse of office) and penalties for private and public sector corruption. However, a lack of capacity and technical skills in some areas mean the level of enforcement is sometimes lacking. Local laws do not make an exception for facilitation payments, which should therefore be considered unlawful. One of the main sectors subject to corruption is public procurement, with Malaysian companies sometimes being favoured over foreign companies and with political connections still playing an important role in the outcome of public tenders.