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RELEASE OF 2012

CORRUPTION PERCEPTIONS INDEX (CPI)

                 RESULTS



               5 December 2012

       Shah’s Village Hotel, Petaling Jaya
Programme

1.30 pm   Opening Remarks

1.40 pm   2012 Corruption Perceptions Index (CPI) Results

2.10 pm   TI-M’s Recommendations

2.30 pm   Questions and Answers

3.00 pm   End
WHAT IS THE CPI?

    An aggregate indicator that …

    •   Measures the degree to which corruption is perceived to exist
        among public sector officials in 176 countries around the world

    •   Draws on 13 different surveys and country assessments from
        independent institutions carried out among experienced observers
        such as business people and country analysts, including local
        experts and local business and multinational firms

    •   Looks at factors such as enforcement of anti-corruption laws,
        access to information and conflicts of interest

    •   Calculated using an updated methodology

    •   Presented on a scale of 0-100

CPI 2012              TRANSPARENCY INTERNATIONAL MALAYSIA                  3
13 SURVEYS USED

  1.       African Development Bank Governance Ratings 2011
  2.       Bertelsmann Foundation Sustainable Governance Indicators 2011
  3.       Bertelsmann Foundation Transformation Index 2012
  4.       Economist Intelligence Unit Country Risk Ratings
  5.       Freedom House Nations in Transit 2012
  6.       Global Insight Country Risk Ratings
  7.       IMD World Competitiveness Yearbook 2012
  8.       Political and Economic Risk Consultancy Asian Intelligence 2012
  9.       Political Risk Services International Country Risk Guide
  10.      Transparency International Bribe Payers Survey 2011
  11.      World Bank - Country Performance and Institutional Assessment 2011
  12.      World Economic Forum Executive Opinion Survey (EOS) 2012
  13.      World Justice Project Rule of Law Index 2012


CPI 2012               TRANSPARENCY INTERNATIONAL MALAYSIA                  4
CPI 2012 – MAIN FINDINGS

 •   Corruption continues to ravage societies around the world


 •   Two thirds of the 176 countries ranked in the 2012 index score below 50


 •   The median score is 37 – rank position 88


 •   Underperformers include the Eurozone countries most affected by the
     financial and economic crisis




CPI 2012             TRANSPARENCY INTERNATIONAL MALAYSIA                       5
RESULTS
           Countries where corruption is perceived to be lowest:
           Rank     Country                 Score        Surveys used
              1     Denmark                  90                    7
              1     Finland                  90                    7
              1     New Zealand              90                    7
              4     Sweden                   88                    7
              5     Singapore                87                    9

           Countries where corruption is perceived to be highest:
           Rank    Country                  Score        Surveys used
            172    Myanmar                   15                    4
            173    Sudan                     13                    6
            174    Afghanistan                8                    3
            174    North Korea                8                    3
            174    Somalia                    8                    3

CPI 2012              TRANSPARENCY INTERNATIONAL MALAYSIA               6
MALAYSIA’S SCORE


           2012      CPI: 49 out of 100

                     Country Rank: 54 out of 176



           Applying the updated methodology to last year’s results:


           2011      CPI: 43 out of 100

                     Country Rank: 60 out of 183




CPI 2012           TRANSPARENCY INTERNATIONAL MALAYSIA                7
COUNTRIES WITH SIMILAR SCORES


            Country Ranking       Country
           (from 176 countries)
                   50             Rwanda
                   51             Seychelles, Georgia
                   53             Bahrain
                   54             Malaysia, Czech Republic, Latvia, Turkey
                   58             Cuba, Jordan, Namibia
                   61             Oman
                   62             Croatia, Slovakia




CPI 2012                TRANSPARENCY INTERNATIONAL MALAYSIA                  8
SCORES OF ASEAN COUNTRIES

           Rank      ASEAN Countries    Position out of   CPI Score
                                        176 countries

            1       Singapore                 5              87

            2       Brunei Darussalam         46             55

            3       Malaysia                  54             49

            4       Thailand                  88             37

            5       Philippines              105             34

            6       Indonesia                118             32

            7       Vietnam                  123             31

            8       Cambodia                 157             22

            9       Laos                     160             21

            10      Myanmar                  172             15


CPI 2012            TRANSPARENCY INTERNATIONAL MALAYSIA               9
CPI SCORE vs. GDP PER CAPITA


                                70,000                                                                                            Australia
  20 11 GDP per Capita ($U S)




                                60,000                                                                                                          Denmark
                                                                                                                               Canada
                                                                                                                                              Sweden
                                50,000                                                                                      Germany
                                                                                                                       UK                 Singapore
                                                                                                                  France
                                40,000
                                                                                                             Spain
                                                                                                                            Hong Kong
                                30,000                                                        S. Korea Portugal

                                20,000                                                Latvia Lithuania
                                                                      Thailand
                                10,000                            Indonesia
                                                           Nigeria                        Malaysia (9,656)
                                                   Cambodia                    South Africa
                                    0
                                         0   10      20          30          40          50          60           70         80               90      100
                                                                                  2012 CPI scores


                                                            Source of GDP Figures: Worldbank
                                              http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countries


CPI 2012                                           TRANSPARENCY INTERNATIONAL MALAYSIA                                                                    10
BRIBE PAYERS SURVEY




CPI 2012   TRANSPARENCY INTERNATIONAL MALAYSIA   11
GOVERNMENT INITIATIVES TO DATE




                                                  Source: Pemandu

CPI 2012        TRANSPARENCY INTERNATIONAL MALAYSIA                 12
FUTURE INITIATIVES




                                             Source: Pemandu

CPI 2012   TRANSPARENCY INTERNATIONAL MALAYSIA                 13
OUR RECOMMENDATIONS
     1.    Reforms in the political arena to reduce monetisation of politics and eliminate
           opportunities for state capture which results in grand corruption
     2.    Continue to strengthen law enforcement institutions especially the MACC,
           Judiciary and Police. Their complete independence must be established to
           secure the public’s trust
     3.    Uphold the rule of law without fear or favour so that abusers especially “big
           fish” cases do not have impunity from prosecution
     4.    Overhaul the Official Secrets Act (OSA) and introduce a federal Freedom of
           Information (FOI) Act
     5.    Firm and consistent actions in upholding transparency and accountability in
           public procurement
     6.    Tackle systemic corruption by focusing on specific sectors through the
           involvement of all stakeholders. For example, a coalition involving CIDB,
           contractors, professional bodies and other regulators in the construction
           industry could be established to drive the initiative to reduce corruption
     7.    Further improve whistleblower legislation to provide wider protection to
           whistle blowers and encourage more whistle blowing

CPI 2012               TRANSPARENCY INTERNATIONAL MALAYSIA                                   14
Thank you for your attention
 Comments and Questions

       603-7960 6630

       www.transparency.org.my

       ti-malaysia@transparency.org.my

       facebook.com/timalaysia

       @ti_malaysia

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Corruption Perception Index 2012 (Malaysia)

  • 1. RELEASE OF 2012 CORRUPTION PERCEPTIONS INDEX (CPI) RESULTS 5 December 2012 Shah’s Village Hotel, Petaling Jaya
  • 2. Programme 1.30 pm Opening Remarks 1.40 pm 2012 Corruption Perceptions Index (CPI) Results 2.10 pm TI-M’s Recommendations 2.30 pm Questions and Answers 3.00 pm End
  • 3. WHAT IS THE CPI? An aggregate indicator that … • Measures the degree to which corruption is perceived to exist among public sector officials in 176 countries around the world • Draws on 13 different surveys and country assessments from independent institutions carried out among experienced observers such as business people and country analysts, including local experts and local business and multinational firms • Looks at factors such as enforcement of anti-corruption laws, access to information and conflicts of interest • Calculated using an updated methodology • Presented on a scale of 0-100 CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 3
  • 4. 13 SURVEYS USED 1. African Development Bank Governance Ratings 2011 2. Bertelsmann Foundation Sustainable Governance Indicators 2011 3. Bertelsmann Foundation Transformation Index 2012 4. Economist Intelligence Unit Country Risk Ratings 5. Freedom House Nations in Transit 2012 6. Global Insight Country Risk Ratings 7. IMD World Competitiveness Yearbook 2012 8. Political and Economic Risk Consultancy Asian Intelligence 2012 9. Political Risk Services International Country Risk Guide 10. Transparency International Bribe Payers Survey 2011 11. World Bank - Country Performance and Institutional Assessment 2011 12. World Economic Forum Executive Opinion Survey (EOS) 2012 13. World Justice Project Rule of Law Index 2012 CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 4
  • 5. CPI 2012 – MAIN FINDINGS • Corruption continues to ravage societies around the world • Two thirds of the 176 countries ranked in the 2012 index score below 50 • The median score is 37 – rank position 88 • Underperformers include the Eurozone countries most affected by the financial and economic crisis CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 5
  • 6. RESULTS Countries where corruption is perceived to be lowest: Rank Country Score Surveys used 1 Denmark 90 7 1 Finland 90 7 1 New Zealand 90 7 4 Sweden 88 7 5 Singapore 87 9 Countries where corruption is perceived to be highest: Rank Country Score Surveys used 172 Myanmar 15 4 173 Sudan 13 6 174 Afghanistan 8 3 174 North Korea 8 3 174 Somalia 8 3 CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 6
  • 7. MALAYSIA’S SCORE 2012 CPI: 49 out of 100 Country Rank: 54 out of 176 Applying the updated methodology to last year’s results: 2011 CPI: 43 out of 100 Country Rank: 60 out of 183 CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 7
  • 8. COUNTRIES WITH SIMILAR SCORES Country Ranking Country (from 176 countries) 50 Rwanda 51 Seychelles, Georgia 53 Bahrain 54 Malaysia, Czech Republic, Latvia, Turkey 58 Cuba, Jordan, Namibia 61 Oman 62 Croatia, Slovakia CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 8
  • 9. SCORES OF ASEAN COUNTRIES Rank ASEAN Countries Position out of CPI Score 176 countries 1 Singapore 5 87 2 Brunei Darussalam 46 55 3 Malaysia 54 49 4 Thailand 88 37 5 Philippines 105 34 6 Indonesia 118 32 7 Vietnam 123 31 8 Cambodia 157 22 9 Laos 160 21 10 Myanmar 172 15 CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 9
  • 10. CPI SCORE vs. GDP PER CAPITA 70,000 Australia 20 11 GDP per Capita ($U S) 60,000 Denmark Canada Sweden 50,000 Germany UK Singapore France 40,000 Spain Hong Kong 30,000 S. Korea Portugal 20,000 Latvia Lithuania Thailand 10,000 Indonesia Nigeria Malaysia (9,656) Cambodia South Africa 0 0 10 20 30 40 50 60 70 80 90 100 2012 CPI scores Source of GDP Figures: Worldbank http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countries CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 10
  • 11. BRIBE PAYERS SURVEY CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 11
  • 12. GOVERNMENT INITIATIVES TO DATE Source: Pemandu CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 12
  • 13. FUTURE INITIATIVES Source: Pemandu CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 13
  • 14. OUR RECOMMENDATIONS 1. Reforms in the political arena to reduce monetisation of politics and eliminate opportunities for state capture which results in grand corruption 2. Continue to strengthen law enforcement institutions especially the MACC, Judiciary and Police. Their complete independence must be established to secure the public’s trust 3. Uphold the rule of law without fear or favour so that abusers especially “big fish” cases do not have impunity from prosecution 4. Overhaul the Official Secrets Act (OSA) and introduce a federal Freedom of Information (FOI) Act 5. Firm and consistent actions in upholding transparency and accountability in public procurement 6. Tackle systemic corruption by focusing on specific sectors through the involvement of all stakeholders. For example, a coalition involving CIDB, contractors, professional bodies and other regulators in the construction industry could be established to drive the initiative to reduce corruption 7. Further improve whistleblower legislation to provide wider protection to whistle blowers and encourage more whistle blowing CPI 2012 TRANSPARENCY INTERNATIONAL MALAYSIA 14
  • 15. Thank you for your attention Comments and Questions 603-7960 6630 www.transparency.org.my ti-malaysia@transparency.org.my facebook.com/timalaysia @ti_malaysia