As a developing country, Malaysia has achieved successes in many fields. It now aims to become a fully developed nation in its own mould by 2020. In order to become a successful nation and to further strengthen its achievements towards excellence, glory and distinction, Malaysia must effectively manage its successes.
The transformation towards a developed nation is not solely based on economic and technological progress. It also needs progress in social, cultural, intellectual and spiritual fields. To achieve these, the enhancement of ethics and integrity to ensure that they become part of the society's culture is absolutely necessary. Only with these values and norms in place, our successes can be sustained and the people's well-being enhanced. At the same time, the first world infrastructure facilities already in place in Malaysia would not be wasted or misused, and the third world mentality can be eradicated.
Malaysia's GDP for the year 2003 increased by 4.5% to RM229.3 billion (US$60.3 billion). This growth is expected to increase to 5.5% - 6.0% in 2004. The infrastructure facilities, such as the supply of electricity and water, are reported to have reached 94% and 92%, respectively in 2002. Enrolment in primary education has reached 97.8 percent, while literacy rate for 2002 was 94%. Life expectancy for male and female has increased to 70.4 and 75.3 years, respectively, while the infant mortality rate had gone down from 6.6 per 1000 in 200 I to 6.2 for 2002. Malaysia's development, growth and competitiveness as reflected in the above figures can be attributed to the presence of noble values, integrity and accountability, as well as the contributions by all concerned to ensure the country's continuing success and the well being of our people.
At the same time, the people's awareness and concern for ethics and
integrity and their demand for the elimination of corruption, abuse of power
and incompetence has increased. They demand that integrity must not be compromised while concerted efforts must be undertaken to enhance the integrity of the government, private sector, political parties, media, trade unions, NGOs, youth, students and the general public.
Malaysian Government's Commitment
The Malaysian government is fully committed to national development. Policies at the national level that address political, administrative, economic and social issues have been introduced and implemented. The progress Malaysia has achieved is due to proper planning by the government and its agencies, as well as the strong and continuing support of the private sector, and the rest of society.
Malaysia has implemented eleven Five Year Development Plans since 1951, and since 1971, it has been guided by three Long Term Perspective Plans. These are the New Economic Policy (1971-1990), the National Development Policy (1991-2000), and the Vision Development Policy (20012010).
The direction and principles of the three perspective plans mentioned above are guided by the spirit and principles of the nation as enshrined in the Federal Constitution, Rukun Negara and Vision 2020. The Federal Constitution has outlined a social contract that provides the foundation forl social harmony, as well as development for our country and people of various ethnic groups and religions. The Rukun Negara - a national philosophy and ideology launched in 1970 - aims at developing a new consensus toward integrating various ethnic groups, and building a society that is just, democratic, liberal and progressive. Vision 2020, which was launched in 1991, contains the national aspiration to become a fully developed nation within our own mould; it also outlines the challenges that need to be addressed in order to realise that goal. The principles and spirit of to Federal Constitution, Rukun Negara and Vision 2020 form the cornerstor for the implementation of all the national policies and strategies.
Enhamcing Ethics and Integrity in the Public Sector
The government is aware that the public sector is the most import2 instrument in management and administration, as well as in the delivery services and national development. Ethical practices and integrity ml therefore be reflected in all undertakings. The integration, internalisati and upholding good moral values, and being free of corruption and abuse
of power, should continuously be strengthened. Since independence, the government has introduced various programmes aimed at enhancing good moral values and integrity in the public service. Since the 1980s, in particular, greater attention has been given to the concepts of 'Clean, Efficient and Trustworthy' (Bersih, Cekap dan Amanah) 'Integration of Islamic Values' (Penerapan Nilai-nilai Islam), 'Excellent Work Culture' (Budaya Kerja Cemerlang), 'Code of Work Ethics' (Kod Etika Kerja), 'Client's Charter' (Piagam Pelanggan) and 'ISO 9000'.
In order to ensure the prevention of corruption, the Government, through Parliament, passed the Prevention of Corruption Act, 1961 to replace the Prevention of Corruption Ordinance 1950. In 1967, the Anti-Corruption Agency was set up whose main purpose was to eliminate corruption, and prevent the abuse of power and malpractices. After taking into consideration the developments taking place in the country and elsewhere, this Act was revised in 1971 and subsequently repealed and replaced with the Prevention of Corruption Act 1997. Since its f~rmation, the Anti-Corruption Agency has played a significant role in comba~ng corruption, maintaining the integrity of government administration and promoting awareness among members of the public of the dangers of corruption and abuse of power.
The government has also set up the Public Complaints Bureau (PCB) as one of the mechanisms through which members of the public could lodge complaints on malpractices and abuse of power in the public service. The Auditor General's Department has been set up to audit Public Accounts and to ensure that public expenditure, r~¥enue and assets are properly managed and accounted for according to the law and established procedures. The Malaysian Administrative, Modernisation and Management Planning Unit (MAMPU) has been established for the purpose of initiating changes in government administration to ensure the creation of a modern, competent and effective public service.
In order to strengthen governance of the public sector, the Government has created a Special Cabinet on Government Management Integrity, whose core business is the integrity of government management. The Committee is currently chaired by the Prime Minister.
The government has also set up the Integrity Management Committee at the federal, state and district levels. In this way, the need for integrity is addressed at all levels of the Government machinery - from the top right down to the grassroots.
The objective of the Integrity Management Committee is to ensure that the Government administrative machinery - basing itself on noble values continues to be competent, disciplined and to fully adhere to the best practices. At the same time, the Committee also aims to overcome prob1ems and weaknesses, especially in financial management, as well as problems of breach of discipline, corruption and abuse of power.
As a guide to best practices, the Government has identified a set of core values which members of the public sector should internalise and put into practice viz. honesty, trustworthiness, wisdom, fairness, transparency, and gratitude. These are core values' that guide every organisation and every member in the public service. The Government has also identified a set of secondary values, i.e., values developed from below which are appropriate and relevant to the organisation's operations. It is the responsibility of the Integrity Management Committee at the Federal, State and district levels to ensure the inculcation and integration of these values in the public sector.
There are eight terms of reference for the Integrity Management Committee. These are: Legislations, System and Work Procedure, Noble Values and Ethics, Code of Ethics, Recognition, Internal Control, Investigative and Punitive Action, as well as Rehabilitatidn. The Committee is a mechanism that has a structure with periodic reporting, meant to strengthen management integrity of the administrative system of the Government of Malaysia.
In addition, there are the Code of Ethics for Judges (1994) and the Code of Ethics for Members of the Administration (1997).
Enhancing Ethics and Integruty in the Private Sector
The private sector is the prime mover of economic growth in Malaysia. The main concerned of the private sector with regard to integrity is corporate governance. The openness of the Malaysian economy and the sustained prosperity it has enjoyed for several decades has enabled foreign companies to operate in this country. At the same time, it has also made possible for the Malaysian private sector to go global in their business operations. However, several events inside and outside the country that have taken place in recent years have thrown into sharp relief the importance of adhering to good corporate governance. The latter outlines how members of the private sector should conduct themselves and perform their responsibilities towards investors and other stakeholders. Various
scandals and malpractices involving both foreign and local companies have time and again demonstrated the need to uphold good governance.
One of the problems affecting the integrity of the private sector is corruption. Generally the private sector is seen as the "giver" while public officials the "receiver". However, both forms of corruption - giving and receiving - also take place in the private sector. In view of its seriousness, an international convention called "The Organisation for Economic Cooperation and Development (OECD) Anti-Bribery Convention" was signed by 35 countries in 1999 to control and prevent multinational companies from giving bribes, and to promote integrity among them. This convention makes it illegal for companies to indulge in bribery.
Efforts at curbing corruption in the private sector are still inadequate. Thus far, many signatories to the convention have not instituted effective legal action against companies and their officials for giving and receiving bribes. At the same time, other crimes such as corporate frauds have tarnished the credibility and integrity of the private sector among investors and the public. For this reason, it is essential to enhance the integrity of this sector.
The above problems underscore one key point, i.e. the importance of adopting good management practices in every sphere of the corporate sector. It also shows the importance of monitoring and enforcement by regulatory bodies, such as the Malaysian Companies Commission and the Securities Commission, in order to promote integrity and sustain economic
prosperity.
Whilst the Integrity Management Committee serves as the mechanism to address problems of ethics and integrity in the public sector, there is no such mechanism in the private sector. However, the Ministry of Finance took a positive step following the financial crisis in 1997, by setting up a High Level Finance Committee a year later.
As a result of this initiative, a code on corporate governance known as the Malaysian Code on Corporate Governance (MCCG) was published in the year 2000. Although the private sector initially did not give much attention to the MCCG, it began to change after January 200 I when the Malaysian Securities Exchange Berhad (MSEB) enforced the Revamped Listing Requirements and implemented the Code. While MSEB does not make it mandatory for listed companies on the Kuala Lumpur Stock Exchange (KLSE) to comply with the principles and best practices of MCCG, these companies are required to be transparent by making disclosures as required
by Listing Requirements. It is obligatory for them to produce reports on various matters as stipulated in the Listing Requirements.
Every company is required to include in its annual report a statement concerning corporate governance, to indicate how the principles contained in MCCG are being applied and how far the code is being observed. In cases where the code is not observed, the company must provide explanations for alternative practices that they have put in place. In this way, the companies have to enhance their transparency and accountability.
In the financial sector, Central Bank of Malaysia (Bank Negara Malaysia) in March 200 I published a Master Plan for A Secure Future. The plan provides the financial sector with directions for a ten - year period up to the year 20 I O. The plan's objective is to bring about a competitive, resilient and dynamic financial system that upholds best practices capable of meeting the ever growing sophisticated needs of clients and businesses. This system should be in tandem with developments in technology as well as able to
meet the challenges of globalisfltion and liberalisation.
In addition, a set of business ethics known as Rukuniaga Malaysia was introduced and implemented by the Ministry of Domestic Trade and Consumer Affairs in 2002. Rukuniaga Malaysia outlines six principle~ for conducting business viz. honesty in doing business; responsibility to clients, society and environment; being humane to all people; fairness to clients; and determination to succeed in business. Many companies have adopted Rukuniaga Malaysia as a guide for their business operations.
Enhancing Ethics and Integrity in Other Sectors
A number of professional bodies and NGOs have also drawn up their code of ethics to ensure the enhancement of ethics and integrity in their respective organisations. Professional bodies such as the Malaysian Bar Council, the Malaysian Medical Association, the Malaysian Board of Engineer!i, the Malaysian Board of Architects, and the Association of Chartered Accountants, have formulated and practiced their own code of ethics. In fact, students pursuing professional courses such as medicine, engineering and law at institutions of higher learning, are also required to attend ethics courses as part of the requirements to obtain professional qualifications and to practice it in their professions.
Consumer associations, teachers' associations, associations of care providers as well as environmental organisations have also drawn up their
code of ethics. There are also other civil society organisations that monitor adherence to ethical values such as human rights, good governance and transparency, as well as the electoral process and democracy in Malaysia. All these indicate that there is an increasing awareness and commitment towards ethics and integrity among various sectors of the Malaysian society.
The Need for a Comprehensive Mechanism
What is clear from the above is that efforts at enhancing ethics and integrity have not been carried out in an integrated manner. Neither they have been comprehensive as their implementation has not been coordinated with the necessary synergy of all sectors. Hence, there is a need to establish a comprehensive mechanism covering all sectors, to coordinate the movement for the enhancement of integrity.
For this reason, a comprehensive plan known as the National Integrity Plan (NIP) has been formulated with the express purpose of enhancing ethics and integrity so that it will become a way of life among the people. All sectors, namely the Government, private sector, political parties, religious institutions, trade unions, NGOs, women, media, youth, students and other groups must deepen their understanding of integrity and commitment to it.
Together with the formulation of the National Integrity Plan is the establishment of the Integrity Institute of Malaysia (11M). The Institute serves as the coordinating mecrhanism for the implementation of the NIP.
Conclusion
The movement to enhance integrity at all levels of the Malaysian society is guided by the NIP with the 11M performing the coordinating function. This movement shall continue to become a source of inspiration and strength to bring Malaysia to greater heights.
