Corruption and Economics in Malaysia

In Malaysia, corruption amongst the elite is a huge problem. Its economic system’s vulnerability to outside influence ensures that the elite has a strong hand in the Malaysian business and finance. Lots of this comes from an abuse of power. The country is plagued by nepotism and cronyism, where those in power direct the wealth and influence towards a small circle of friends and family. Economic prosperity comes through your relationships and connections, not through hard work. Similarly, the elite has control over a majority of the economy through government-linked companies. Those in power place shares of companies, directorships, and contracts in the hands of fellow associates, yet again creating a circle of reliable income and directing a large chunk of Malaysian income towards themselves. In this way, political corruption lays the groundwork for economic corruption. Those in power always have a strong hand in the direction of the country’s economy.

Last year, this spiral of corruption resulted in a loss of RM47 billion ($11 billion US dollars) in Gross Domestic Product value. That’s $11 billion that could be directed towards the education, healthcare or infrastructure. Corruption directly affects the most vulnerable in society - specifically women, children, and the poor. The corrupt few, benefit the most from this system. Recent attempts by Malaysian politicians to weed out corruption has been deemed unsuccessful. It's become the center of attention for many Malaysian politicians. Unfortunately, establishing a just system and getting rid of the corrupt few is easier said than done. But until it's done, Malaysia will be unable to advance economically and keep up with the rapid pace of other developing countries.