43% of Malaysian respondents have experienced fraud or corruption within the last 24 months (vs 41% in 2018). Trust continues to be fragile as organisations in this part of the world continue to grapple with bribery and corruption, asset misappropriation and cybercrime among other disruptive frauds.
Organisations are also not doing enough to report their most serious incidences, which indicate that they do not fully understand the root causes of the crisis impacting them. These findings signal an urgent call for Malaysian companies to be proactive in combating fraud without fear or favour.
The survey is based on insights from 114 respondents in Malaysia.
Explore key themes
Defences need to evolve with the times
It’s not enough to invest in an anti-fraud and corruption programme and expect it to deliver results. Organisations will be hard pressed to fully reap the benefits of their investments if they don’t consistently monitor trends in the economic crime landscape and refine their initiatives accordingly.
Perpetrators will continue to be more sophisticated, enabled by technology. Prevention and detection measures too need to catch up.
Get it right with culture
A strong tone from the top is critical in building a speak up culture and encouraging employees to report fraud and corruption in a safe environment.
It makes a difference when leaders set the tone by role modelling the behaviours they want to see in the organisation. When leaders take a strong stance against corruption, this will shape how employees and management conduct themselves as well as the choices they make, large and small.
Implement Adequate Procedures
Organisations will need to be compliant with the section 17A requirements of the Malaysian Anti-Corruption Commission (MACC) Act which takes effect 1 June 2020.
As board members and management will be personally held liable in the event that the company commits corruption, all commercial organisations will need to implement Adequate Procedures that are designed to prevent the corrupt act. Having this due diligence in place will be the company’s only defence, so it is incumbent on organisations to be prepared as the deadline approaches.
“I encourage organisations to be proactive, carry out regular risk assessments to continually test and refine your defences, and invest in upskilling your organisation on what Adequate Procedures mean in practice so that you can prepare yourselves for the corporate liability provision. Build a strong corporate culture that advocates zero tolerance for corruption and other unethical behaviour.”
Alex Tan, Partner and Forensic Services & Risk Consulting Leader, PwC MalaysiaExplore the insights
PwC's Global Economic Crime and Fraud Survey 2020: Malaysia Report
Contact us
