Private sector firms urged to co-operate to beat corruption
Malaysia’s private sector companies must work together to stamp out corruption and commit to doing business with integrity to improve the business environment across the country.
That’s the view of the Coalition for Business Integrity (CBI), which issued its call to action at a high-level conference held in Penang, which was attended by more than 100 business leaders, executives and government officials. The theme of the conference was to share expert insight and best practices on how to embed business integrity in companies and their supply chains.
The CBI said it picked Penang to host its anti-corruption conference because of its strategic importance as Malaysia’s tech and med-tech hub. At the conference the Coalition said it applauded the Malaysian government’s commitment to fighting corruption, but added that there was still much work to be done.
“From the ground, we can see that local business operators continue to suffer from the prevalent corrupt culture in both the public and private sectors which has contributed, among other factors, to the rising cost of living and an increasingly unsustainable business environment in some sectors,” said Mark Chay, Chief Executive Officer, Coalition for Business Integrity Berhad.
Chay called on the government and business sector to make a determined, joint effort to tackle corruption.
The CBI’s call to action comes more than three years after the federal government enacted Section 17A of Malaysian Anti-Corruption Commission Act, which came into law in June 2020.
Under this provision, a company can be considered guilty if any of its employees and/or associates give bribes for the benefit of the organisation. Commercial organisations may also be considered guilty whether or not upper management or its representatives knew about the corruption. The only defence for such commercial organisations is to prove that they had “adequate procedures” implemented for preventing corruption.
In support of private sector efforts to tackle corruption, UN Global Compact Network Malaysia and Brunei (UNGCMYB) launched new digital tools and localised resources that corporates and SMEs can access through its eLearning Academy.
The resources include a special course focused on anti-corruption in the Malaysian context that aims to educate companies and their workforces about how they can embed business integrity across their operations and supply chains.
“Understanding industry best practices and how to apply them in the Malaysian business context is critical for companies. We recognise the importance of this topic and have fully subsidised our localised course on anti-corruption to provide a valuable resource to companies working to demonstrate their commitment to fighting corruption and ensuring they operate with business integrity,” said Shanta Helena Dwarkasing, Director of Programmes, UN Global Compact Network Malaysia and Brunei.
To further guide the private sector, the three co-organisers – Coalition for Business Integrity, UN Global Compact Network Malaysia and Brunei, and the Malaysian International Chamber of Commerce and Industry – are jointly developing a whitepaper compiling key insights, challenges and opportunities highlighted at the conference, to be presented to the state government later this year.
Bank pledges more support for SMEs
One of Malaysia’s major banks has pledged to assist their small and medium enterprise (SME) clients, who face difficulties in servicing their debt repayments from the recent rise in borrowing costs due to the challenging business environment.
Standard Chartered Malaysia and Standard Chartered Saadiq Malaysia said its measures include rescheduling and restructuring assistance, interest-only payment plans and special assistance for women entrepreneurs.
“We understand that borrowers of various sizes, especially small businesses, may find it more difficult to repay their monthly installments for loans with floating interest rates in recent times,” said chief executive officer Mak Joon Nien.
“As our clients’ wellbeing remains our utmost priority, we hope that these financial repayment options can help ease their financial burdens, amidst the many challenges they face in growing and sustaining their businesses.”
