Keynote Lecture 

Creating Systemic Corruption: Politics, Power, Policies 

Ideas In Focus 

In the keynote by Dr. Gomez, the historical perspective of corruption in Malaysia was explored. Corruption was initially understood as bribery or "rasuah" in local terms, but it has evolved into a broader issue encompassing corruption, collusion, and nepotism. The discussion highlighted the influence of patronage-based and race-based policies, such as the New Economic Policy (NEP), which aimed to address economic disparities but faced implementation challenges. The problem lies not in the policy itself but in its flawed implementation, allowing politicians to enrich themselves.


Crony capitalism was identified as a significant issue, as it perpetuates a system where business opportunities are awarded based on personal connections rather than merit. The concentration of power in the hands of the cabinet was emphasised, as they controlled the economy and the market. The question was raised whether these policies truly benefit the intended groups or if they primarily serve the interests of the powerful.


The discussion referred to the "Asian paradox" and the phenomenon of developmental corruption observed in countries like Japan and Taiwan. Developmental corruption involves the government granting concessions to private companies and allowing them to control resources with the expectation of achieving positive outcomes. However, corruption during the Asian financial crisis highlighted the misuse of resources, where rents were not utilised productively but rather accessed by individuals through bribes and corrupt practices.


The conversation delved into the complexity of corruption beyond bribery, including secret agreements between groups or individuals and wealth accumulation through privatisation and nepotism. The PFI scandal, a policy that allowed the government to grant contracts to well-connected businesses, was highlighted as an example of corruption intertwined with land-related issues. The intricate system and structures created by the government and the deployment of policies were scrutinized to understand the mechanisms that facilitate corruption.


The role of government-linked investment companies (GLICs) and government-linked companies (GLCs) in the economy was discussed, with concerns raised about the potential abuse of funds from institutions like the Employees Provident Fund (EPF) and the Retirement Fund Incorporated (KWPS). Despite calls for reform, the panellist noted a lack of significant changes and highlighted the importance of addressing land-related issues, particularly in institutions like FELDA, MARA, and Tabung Haji, which were initially established to benefit the poor but have been exploited by the wealthy.


The panellist expressed disappointment with political parties, noting that few have demonstrated a genuine commitment to bringing about real change. PSM was identified as an exception. The defence of politicians charged with corruption often revolves around declaring political donations, indicating a need for laws to address this issue. The interplay between public, political, and private interests was explored, with a focus on the significant control of resources by powerful entities.


The backwardness of the legal system was attributed to the lack of attention given to policy matters. The panellist stressed the importance of maintaining pressure on the government and holding them accountable to prevent another corrupt administration. The discussion emphasised the need for ongoing scrutiny and awareness to ensure that those in power understand they are being watched.


In summary, the talk provided a historical perspective on corruption in Malaysia, highlighting the complexity of corruption beyond bribery. Flawed implementation of policies, patronage-based practices, and concentration of power was identified as underlying issues. The misuse of resources, including lands and funds from institutions, was also discussed. The panellist emphasised the necessity of ongoing pressure and vigilance to combat corruption and ensure a more transparent and accountable government.

Unveiling the Dialogues

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