MALAYSIA'S 2025 CPI SCORE INCREASE SIGNALS POSITIVE NATIONAL GOVERNANCE REFORM

By Idris Zaharudin

KUALA LUMPUR, March 10 (Bernama) -- The 2025 Corruption Perceptions Index (CPI) results announced last February brought a positive development for the country as Malaysia recorded an increased score of 52 points from 50 the previous year, thereby improving its position to 54th out of 180 countries assessed.

Although the two-point increase may appear modest, it is in fact a significant development in the context of a global index such as the CPI.

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This is because the CPI is developed based on a combination of several international studies that assess the perceptions of experts and the business community regarding the level of integrity of a country’s public sector.

Therefore, every increase in score reflects a rise in confidence in the country’s governance system.

Confidence among international business community on the rise 

Malaysia’s CPI score increase can also be seen more clearly when the data sources that form the index are examined in detail.

The CPI is actually built from nine separate international studies that measure the perceptions of experts and the business community regarding the level of integrity of a country’s public sector, before all of them are standardised and averaged to produce the final score.

Of the nine sources, two surveys involving the international business community showed a notable increase for Malaysia.

In the 2025 CPI scoring table, the score from the IMD World Competitiveness Yearbook Executive Opinion Survey increased from 38 to 50, representing a 12-point rise, while the score from the World Economic Forum Executive Opinion Survey rose from 50 to 64, an increase of 14 points.

The significant increase in both surveys is highly meaningful because it reflects a change in perception among international business leaders and investors towards the integrity of public institutions in Malaysia.

In the context of the CPI, which is based on perception, changes such as this usually occur only when the business community sees the presence of consistent reform actions, more transparent policies and a clear commitment by the government to strengthen governance and combat corruption.

This is also in line with the reform approach being implemented by the government through the National Anti-Corruption Strategy, as well as policy coordination under the CPI Task Force chaired by the Chief Secretary to the Government.

In other words, the increase in Malaysia’s CPI score is not merely a change in statistical figures, but reflects rising confidence among investors and the business community in the integrity of the country’s administrative system.

Government reforms begin to show results

The increase in Malaysia’s CPI score did not occur by coincidence. It is the result of various reform efforts that have been implemented by the government to strengthen integrity and the efficiency of national governance.

Among the key steps taken is the enactment of the Public Finance and Fiscal Responsibility Act 2023, which aims to ensure that fiscal discipline and the management of national finances are carried out in a more transparent and responsible manner.

In addition, amendments to the Audit Act 1957 have expanded the role of the Auditor-General in monitoring government-related entities such as GLCs and GLICs, thereby increasing accountability in the management of public funds.

Measures to enhance transparency in company ownership through amendments to the Companies Act 2016 are also an important effort in addressing the misuse of corporate structures for corruption and money laundering.

At the same time, the government has also launched the National Anti-Corruption Strategy 2024-2028 as a comprehensive framework to strengthen corruption prevention efforts and to instil good governance at all levels of administration.

To ensure that these efforts are implemented in an organised manner, a CPI Task Force chaired by the Chief Secretary to the Government has been established to coordinate the implementation of related initiatives across all government agencies.

Under this task force, six focus groups have also been created to examine in detail various aspects that influence perceptions of national integrity, including public sector governance, enforcement, transparency in government procurement, investment risks, and legal reforms.

This approach enables the government to identify challenges more comprehensively and formulate more effective improvement measures.

CPI not merely a measure of corruption cases 

It is important to understand that the CPI does not only measure the number of corruption cases occurring in a country.

Instead, the index also evaluates various factors that influence the integrity of public administration, such as the level of government transparency, bureaucratic red tape, the effectiveness of law enforcement, protection for whistleblowers and the independence of institutions.

In other words, the CPI reflects the level of confidence of society and the international community in a country’s governance system.

Therefore, the increase in Malaysia’s CPI score can be viewed as an indication that the reform measures currently being implemented are beginning to have a positive effect on international perceptions of the country.

Towards the target of world’s top 25

Although this increase represents an encouraging development, efforts to strengthen national integrity must continue consistently.

The government has set a target of placing Malaysia among the top 25 countries in the world in the CPI by 2033.

To achieve that goal, several important reform agendas must continue to be strengthened. Among them are enhancing transparency in public procurement, expanding protection for whistleblowers and increasing access to public information through the enactment of a Freedom of Information Act.

In addition, enforcement of laws in corruption cases must also be carried out firmly and consistently to ensure that no party is immune from legal action.

A collective effort of the whole society

Efforts to combat corruption cannot be borne by the government alone. It requires the involvement of all parties, including the private sector, civil society and the public.

Countries with low levels of corruption generally have more efficient administrative systems, more stable economies and higher levels of public trust in national institutions.

Therefore, the increase in the 2025 CPI score should be seen as a positive first step.

With continued commitment from the government as well as support from society as a whole, Malaysia has the potential to further improve its position in the CPI and subsequently build a governance system that is truly clean, transparent and full of integrity.

-- BERNAMA

* Datuk Idris Zaharudin is the Senior Director of the National Governance Planning Division (BPGN) of the Malaysian Anti-Corruption Commission (MACC).