Measuring Perceptions of Corruption Against the Reality of Our Success

When it comes to evaluating the level of corruption in Malaysia, perceptions can be more powerful than reality. After all, even the global measure of corruption is called the Corruption Perceptions Index.

At a local level, our first hand experiences play a bigger part than broader trends. If a group of friends are talking about the last time they paid a policeman in order to get out a speeding fine (which will be impossible under AES), this can become a more powerful instrument in shaping public opinion than successful governmental measures that are important but seem remote.

Against this type of anecdotal experience, who will have taken notice that the Government Transformation Programme 2.0 contains powerful new measures to punish corruption at a corporate level? Under the new rules, a company will be held to account even if just one of its staff members is guilty of graft.

Likewise, the naming and shaming of corrupt officials so often goes unnoticed. The list on the MACC websitefeatures 365 names for this year alone. Or what about the fact that the MACC’s conviction rate is still rising – standing at 74 per cent last year? Or the fact the special MACC courts are now hearing cases that used to drag on for years, within 12 months?

All these are important measures that can get lost amid the day-to-day experiences of the rakyat, which too often triumph in shaping public perceptions.

In the light of this, the Institute for Democracy and Economic Affairs (IDEAS) has today released a report entitled “Eradicating Corruption: How Successful Have We Been?” which deals precisely with this issue of perceptions versus reality.

It concludes that discussions about corruption issues should be taken with a “pinch of salt”. It says there is a “disconnect between public perceptions and what the data says”.

“All that we are saying is that there is a need to be cautious and not throw blanket accusations denying the many good efforts initiated by the Government,” it concludes.

But it is also critical of the Government for failing to co-ordinate its responses to corruption.

“At the moment we don’t see a cohesive approach where all sectors from the public sector, private sector and civil society sit around one table with one clear objective of eradicating corruption,” the report notes.

In an effort to separate the perception of corruption from the reality of doing business in Malaysia, IDEAS senior fellow Anis Yusal Yusoff took on the task of measuring corruption data against economic growth in this nation.

He said despite Malaysia’s Corruption Perception Index (CPI) score of 4.3 in 2011, our economic growth has been robust for more than a decade, averaging 4.8 per cent year-on-year over a 12-year period.

“Our brief survey in this study shows that Malaysia’s investment rate, growth rate, as well as human development rate are not going the way it should if Malaysia is truly as corrupt as perceived,” he said.

He also looked at Foreign Direct Investment, which he is the first thing to suffer if corruption emerges as a serious barrier to doing business.

“Investment rates are more strongly associated with perceived corruption than other economic indicators and usually one would expect that higher corruption would deter FDI.”

There is also the paradox that the more the Government shines a light on corruption through its eradication measures, the higher the public perception. Put simply, the more attention the Government gives to an issue the worse it can appear.

“In one sense, this trend is positive. It is encouraging to see the public exercise more oversight on this important issue and for them to make the government more accountable,” Anis Yusal said.

So what role will corruption pay in deciding the outcome of GE13? If the Opposition had its way, it would be the headline issue as it plays to Pakatan’s strategy of doing all it can to undermining the legitimacy of our Government and institutions. This conveniently sets up the Pakatan story for a loss, when Anwar can point to the result and says: What do you expect, the election was unfair and the Government is corrupt.

But as any sane voter knows, the real issues that count are things that impact on the futures of our children such as the economy and education. And as this report points out, we wouldn’t have the economy that has soared over the past decade if corruption was so bad as to stifle investment.

Most importantly, the war against corruption is a process not an event. We have made great progress to date, but no one should fool themselves into thinking that we won’t have a whole more to do after GE13.