The 12th Malaysia Plan (12MP), starting with Budget 2022, must contain comprehensive and innovative measures to curtail corruption, the core driver of illicit trade and other unnecessary leakages to the Malaysian economy, said Dato’ Seri Akhbar Satar, the Founder and President of the Association of Certified Fraud Examiners (ACFE)-Malaysian Chapter, in a statement today.
Dato’ Seri Akhbar Satar, who holds the professorial chair at Institute of Crime & Criminology, HELP University and also the immediate former Transparency International Malaysia President, says, “Leakages from the shadow economy, particularly illegal cigarettes trade that cost the Government more than RM5 billion in uncollected tax revenue every year continues to weigh down the economy and negatively impact the society at large.
“In addition, illegal cigarettes kingpins and cartels that are said to be known to enforcement agencies have yet to be caught and charged. Instead, they are getting bolder and more innovative in their operations.”
“This situation is fuelled by corruption, and if left unchecked, the aspirations and targets set out in the 12MP will not be achieved,” he adds.
“Corruption undermines social development, political stability and sustainable economy. What they really do is scare away quality investors and decreases productivity that leads to a reduction in economic growth,” Dato’ Seri Akhbar explained.
A case in point is Malaysia’s dropped in rank and score in the Transparency International Corruption Perception Index 2020, 51 out of 100 points, placing us at 57th out of 180 countries.
As Budget 2022 is focused on improving governance frameworks and strengthening actions to protect and drive the recovery of lives and livelihoods for the people, rebuild the resilience of the economy as well as catalyse socio-economic reforms, Dato’ Seri Akhbar recommends:
- A comprehensive framework to eliminate corruption in 12MP, starting with Budget 2022;
- Leverage successful policies implemented in Budget 2021 to further curtail all illicit trade, including illegal cigarettes kingpins and cartels through the use of existing laws like Security Offences (Special Measures) Act 2012 (SOSMA), Prevention of Crime Act 1959 (POCA), The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA);
- Empower the multi-agency task force with top-quality personnel to combat illicit trade. To date, the Multi-Agency Task Force has been doing a good job, but more cooperation between relevant law enforcement agencies is required to drive greater results. In addition, joint intelligence and operations should be improved and carried out sincerely and truthfully.
- Increase awareness and education programmes for public and private sectors of all levels on the perils of corruption for the betterment of future of Malaysia and its people as well as it is everyone’s responsibility to combat this;
- Provide a conducive environment that encourages the public to report any wrongdoings, such as anonymous reporting on smuggling activities.
Dato’ Seri Akhbar foresees that illegal trade will expand exponentially in the foreseeable future.
Recently, YB Dato’ Sri Ismail Sabri revealed that a total of 580,000 households from the middle-income group have slipped into the bottom 40 per cent (B40) category due to the economic fallout caused by the Covid-19 pandemic.
“This will further fuel corrupt practices by criminal elements to take advantage of the demand for cheaper products. Therefore, long term planning and comprehensive execution to stamp out corruption must start now,” Dato’ Seri Akhbar concluded.
Dato’ Seri Akhbar Satar is a Kelantan-born criminologist, crime analyst and former graft buster with the MACC.
A former Transparency International Malaysia president, he is currently the president of Malaysian Association of Certified Fraud Examiners and holds the Professorial Chair with HELP University’s Institute of Crime and Criminology (ICC) and has 37 years of investigative experience, he has authored books and has spoken widely on fraud, corruption, ethics, integrity and the detection of deception at seminars and conventions held both locally and internationally.
He is also a member of Anti-Corruption Advisory Board MACC, member of Investigative Committee for Governance Procurement and Government Finance, the Malaysian Institute of Integrity, the American Polygraph Association, the American Society of Criminology, the International Association of Crime Analysts and an Affiliate Member of the Asian Institute of Chartered Bankers.
