Malaysian Prime Minister Anwar Ibrahim during a press conference in New Delhi, India, Tuesday, August 20, 2024.
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Eliminating corruption in Malaysia remains a difficult hurdle if Prime Minister Anwar Ibrahim wants to attract more foreign direct investment into the country.
He said that as Anwar's second anniversary as prime minister approaches, he remains firmly committed to the crackdown and is taking a serious approach to the issue.
“We have to save the country. In my opinion… the main problem is poor governance and widespread corruption,” he told CNBC's JP Ong.
Anwar explained that domestic and foreign investors will gain more confidence when they see consistency in transparent processes and a strong commitment to stamping out corruption.
“Without that trust (and) confidence, no one will make large-scale investments. Unless those who have some corrupt arrangements – they will still continue. But it has to stop. Fortunately, it has stopped,” he said .
“Nevertheless, we are still on this mission because I have strongly suggested that when it comes to corruption, it is almost systemic. When it comes to systemic, which means that the anti-corruption mission, must be full force ,” he added.
“I will pursue them mercilessly”
Malaysia welcomes foreign direct investment inflows MYR 40.4 billion By 2023 ($9.7 billion), a significant decline from the peak RM48.1 billion By 2021, government data shows. Meanwhile, Southeast Asian countries have lost RM277 billion According to official data, economic output due to corruption fell between 2018 and 2023.
When asked by CNBC if the government was cracking down on corruption too quickly and too harshly, Anwar said that if he had his way, “damn it… I would go after them mercilessly.”
However, he explained that he must call on his coalition to engage in dialogue on the best way to tackle the problem, reiterating that if they continue “too slowly and ineffectively… the country will never be saved”.
“I think we've made enough progress now to indicate that this mission will continue,” he said.
Anwar did not talk specifically about any corruption cases and did not mention any former leaders by name in the interview. However, multiple incidents of corruption still make headlines when discussing proper governance in Malaysia. One of the most notorious cases remains the 1MDB money laundering scandal, in which then-prime minister Najib Razak was found guilty of embezzling millions of dollars.
In May, the government launched a new national anti-corruption strategy aimed at propelling Malaysia into the top 25 countries in terms of anti-corruption. Transparency International’s Corruption Perceptions Index within the next ten years. Malaysia currently ranks 57th in the index.
Malaysia's economy Growth 3.7% Last year, the country's growth rate in 2022 was 8.7%, even as the country appeared to be recovering from the epidemic. Nonetheless, it is still lower than Growth 4.3% Saw it in 2019.
Two separate economic zones are in the pipeline as part of Malaysia's strategy to increase foreign investment flows and boost the country's economic status.
The Johor-Singapore Special Economic Zone agreement is likely to be finalized by the end of this year in a move aimed at boosting cross-border trade and investment activities.
Malaysia is also seeking investment for its Forest City Financial Zone, hoping to increase business activity and promote Iskandar Puteri City as a business district where high-skilled talent gathers. The government announced last week that Forest City will become the first place in Malaysia to offer zero tax to family offices.