dissertation proposal (corruption in Msia) by Li Tan Submission date: 07-Jan XXXXXXXXXX:41PM (UTC+0000) Submission ID: XXXXXXXXXX File name:...

WHAT IS THE ROOT CAUSE OF CORRUPTION IN MALAYSIA?
Abstract
The current research aims at finding the root cause of corruption in Malaysia and it is titled, “What is the root cause of corruption in Malaysia?”. The research has taken into consideration the general attributes and factors of corruption for it being a global phenomenon along with the country context of Malaysia and its multifaceted corruption issues. Within the four researches objective, apart from the identification of the root cause of corruption in Malaysia the suitable ways of finding proper solution is also included.
An array of literary discussions is developed in which generalised factors and related variables of the research topic have been discussed critically which is further enriched in depth by the theoretical discussions and frameworks provided. Considering the wide circumference of the current research secondary research is conducted, which is further aided by positivism philosophy, deductive approach and descriptive research design. The collected data, processed on the form of themes reveal that Malaysia has been plagued with corruption and the political stagnancy and lack of transparency in government dealings are the root causes acting in a combined way to generate high corruption rate in the country. In the form of mitigating the issue of corruption, removal of the political influence over the election commission and judiciary system has been provided along with the formulation of a proper Asset Declaration System.
Acknowledgement
The current research has been an amazing learning experience for me and I would like to mention the name of each person who had been there in supporting me in the entire project from the first day to the final submission, as a form of acknowledgement. Firstly, I would like to thank my mentor for the unwavering support and harsh criticism, which refined and rectified by research. In addition, I would also like to mentioned and thank my friends and peers for their sharing of feedbacks of the research in its developmental phase. Lastly, I would like to thanks my family for their support and believe in me, which has been major strength.
Thank you all, for your support, I hope to get your support in my future endeavours as well.
Table of Contents
Chapter 1: Introduction    8
1.0 Introduction    8
1.1 Background of the Research    8
1.3 Background of Malaysia    9
1.4 Research Rationale    9
1.4.1 What is the Issue?    9
1.4.2 Why is it considered an Issue?    10
1.4.3 Why is it an issue now?    10
1.4.4 What could the research shed light upon?    10
1.5 Research Aim    11
1.6 Research Objectives    11
1.7 Research Questions    11
1.8 Significance of the Current Research    11
1.9 Dissertation Structure    12
1.10 Summary    12
Chapter 2: Literature Review    13
2.0 Introduction    13
2.1 Concept and Causes of Corruption    13
2.2 Factors Affecting Corruption    13
2.3 Corruption at Social Level    14
2.4Impact of Corruption on Economy of a Country    14
2.5 Impact of Legislature on Corruption    15
2.6 Comparative Study of Corruption in Malaysia with Other Countries    15
2.7 Causes of Corruption in Malaysia    16
2.8 Impact of Corruption on Malaysia’s Economy    16
2.9 Significance of the Eradication of Corruption    17
2.10 Ways to Fight Corruption in Malaysia    17
2.11Conceptual Framework    18
2.12 Summary    18
Chapter 3: Theoretical Framework    19
3.0 Introduction    19
3.1 The Game Theory    19
3.2 The Rational Choice Theory    19
3.3 Social Movement Theory    19
3.4 Corruption Control Framework    20
3.5 Cluster Plan Framework    20
3.6 Utilitarianism Framework    21
3.7 Summary    21
Chapter 4: Methodology    22
4.0 Introduction    22
4.1 Research Outline    22
4.2 Research Onion    22
4.3 Research Philosophy and Justification for Selecting Positivism Philosophy    23
4.4 Research Approach and Justification for Selecting Deductive Approach    23
4.5 Research Design and Justification for Selecting Descriptive Design    23
4.6 Research Type and Strategy Justification for Selecting Secondary Research Type and Literature Review Strategy    24
4.7 Data Sources and Data Collection Method    24
4.8 Inclusion-Exclusion Criteria    25
4.9 Data Analysis Technique    25
4.10 Reliability and Validity    25
4.11 Ethical Consideration and Accessibility Issues    25
4.12 Timeline    26
4.13 Summary    26
Chapter 5: Main Analysis    27
5.0 Introduction    27
5.1 Thematic Analysis    27
5.1.1 Theme 1: Multifaceted Corruption in Malaysia    27
5.1.2 Theme 2: Political Character of Malaysia    30
5.1.3 Theme 3: Malaysian Judiciary and Its Impact on Corruption    32
5.1.4 Theme 4: Malaysia’s Response against Corruption    34
Summary    36
Chapter 6: Conclusion    37
6.0 Conclusion    37
6.1 Linking Objective with Literature    37
6.2 Recommendation    39
6.2.1 Removing Political Influence on National Judiciary System    39
6.2.2 Empowering Asset Declaration System in Malaysia    39
6.2.3 Remove the Political Control on Election Commission and its Employee Recruitment    39
6.3 Limitations of the Research    40
6.4 Future Scope of the Research    40
References    41
Appendix    47
List of Figures and Table
Figure 1: Structure of the Dissertation    12
Figure 2: Conceptual Framework    18
Figure 3: Research Onion    22
Figure 4: Top Three Type of Crimes in Malaysia    27
Figure 5: Most Corrupt Countries    28
Figure 6: Corruption in Malaysia, Indonesia, Thailand and Filipina    29
Figure 7: Malaysian Political Power Percentage    31
Figure 8: Control of Government over Media in Malaysia    31
Figure 9: Malaysian Judicial System Overview    33
Figure 10: National Single Window    35
Table 1: Gantt chart    47
Chapter 1: Introduction
1.0 Introduction
The lust for power and security has been the major reason for the widespread promotion of corruptions and the high inclination of the humans for it. Due to the global population increase, the resources have become limited and the degree of available resources for luxury has declined significantly, making people use unethical means to cater resources in the form of tangible assets (Shah, 2018). As corruption promotes the unequal distribution of resources, they tend to create pressure on local, national and global economies. It is found that in order to resolve the issue of corruptions from a certain location, the causes of the corruptions, especially, the root cause must be identified, and as the identification of the root cause and its preventive measures help eliminate corruption. In the current research, the root cause of corruption in Malaysia has been discussed critically, as Malaysia is found to be one of the most corrupt countries in the world, thus, offering ample chance of learning from the country’s condition (Star, 2018).
1.1 Background of the Research
Due to the profound impact corruption on economy, society and culture, it has been poised as the core topic of discussion in literary works such as Hanley and Sikk (2016), which discusses the aspect of economic corruption, while the work of Bauhr (2017), which brings to the front social dimensions leading to corruptions. In both the mentioned literature, corruption has been examined and discussed, keeping different variables for a critical dimension assessment. However, as mentioned by Dimant and Tosato (2018), majority of the literary works on corruption does not try to locate the root cause of corruption in the context of a specific country or society.
Instead, most of the literary works are based on exploring only one aspect, which is associated with corruption and it acts either as a result or a factor that regulates the degree of occurrence. In the current research he root cause of corruption in Malaysia has been attempted to be identified, assessed and discussed, going through a series of factor analysis and theoretical applications and strategic methods application. The current research would offer a wider perspective about the development of corruption within a country, focusing on a root cause that would also act as the source of secondary reasons amplifying the reach and intensity of corruption.
1.3 Background of Malaysia
Malaysia is small country within the Asian content and has a sound economy, which has developed over the decades based on the industrial and business sectors it has nurtured and harboured properly. The geographic location places it near the South China Sea, Singapore, Indonesia, Vietnam borders, which have acted as the source of profound business propositions for decades. The country has a multi-ethnic population that makes the culture of the country unique in itself, although there remains a distinct difference between the ethnic Muslims and Chinese in the country (One World Nations Online, 2019). Despite the profound potential of business in the country, it is found that it has a far less economical prowess that one that it deserves.
The ethnic Muslims, belonging to the Malay origin are highly active dominant in the political system and the political transparency is non-existent leading to the occurrences of political and financial swindles that have undermined the country’s economic strength. In 2015, 1 Malay Development Berhad, accounting U$700 million has occurred as a scam that identified that the entire money was laundered into the private account of M. Razak, the prime minister of the company (New Mandala, 2015). The wide-scale corruption has promoted bribery-based systems in which the government and the private organisational systems operate. It is evident that Malaysia needs to overcome corruption to prosper faster, which makes the identification of the root cause of corruption worth finding.
1.4 Research Rationale
1.4.1 What is the Issue?
The impact of corruption has been felt on the economic system of Malaysia, which has made the distribution of monetary resources for the welfare of the citizens of the country hindered and unfulfilled. As mentioned by Pinho (2018), corruption takes away the money, required for proper welfare and development of people in a specific setting, be it country, society or groups. In case of Malaysia, it is found that the unidentified root cause of corruption is triggering more number of unethical actions, which are undermining the current and future growth potential of the country. Hence, it is emerging as an issue to deal with. It is also noted that corruption is taking away the power from the populace of Malaysia to question the political frauds, which are only benefitting a small part of the total population (The Star, 2018).
1.4.2 Why is it considered an Issue?
The lack of identification of the root cause of corruption in Malaysia is making the preventive measures inaccurate, resulting in the failure of monetary reforms, financial systems. As supported by Rodriguez-Sanchez (2018), when the root cause of corruption is not identified the country or region affected by corruption faces issues of inflation, slower development, lower GDP. It is found that due to unrestrained corruption, Malaysia is facing inflation, lower growth in GDP and most importantly is not being able to cope up with the faster development of the counties around it (The Star, 2018), making its economy weaker, therefore, it is an issue that requires careful attention providing.     
1.4.3 Why is it an issue now?
It is found that considering the importance of meeting the demands of the increasing population, majority of the countries around the globe are focusing on globalisation and refining their monetary, political and social reforms, which are taking them further in the global context. However, within the last few years, the level of corruption has slowed down the financial and monetary progression of Malaysia due to its increasing corruption. The country is found to lose its Corruption Perception Index in 2017, reaching an all-time low of 62th in the rankings from previous year’s 55th (GAN Integrity Inc., 2018). Corruption is undermining the scope of Malaysia’s future by keeping it less capable of taking full advantage of globalisation and its increasing popularity around the globe. Therefore, corruption in Malaysia has become even a larger problem than before and hence, it is a contemporary issue, which requires immediate measures.
1.4.4 What could the research shed light upon?
The current research would shed light upon the root cause of corruption in Malaysia, along with the details about the justification for the identification of the root causes. The research would also hint at the probable solutions that can be used as preventive measures against corruption and help Malaysian politics and economic system in gaining a much-needed inflow of cash. The research will also bring under light the areas the external and internal factors that has made the root cause of corruption strong and dominant along with secondary causes that have sprouted from the root cause.
1.5 Research Aim
The aims of the current research is to identify the root cause of corruption in Malaysia and analyse the associated factors of the root cause for formulating suitable solutions to mitigate the issue of corruption in the country.
1.6 Research Objectives
· To comprehend concepts and theories of corruption in Malaysian context
· To find and identify the root cause of corruption in Malaysia
· To critically analyse the factors contributing to corruption in Malaysia
· To evaluate the impact of corruption in Malaysia and find strategies to prevent them
1.7 Research Questions
The main question of the research is ‘What is the root cause of corruption in Malaysia?’
Taking cue from the main question, the following research questions are formed
· What is the reason for having high corruption rate in Malaysia?
· What are the subsequent results of corruption in Malaysia?
· Why and how corruption in Malaysia be challenged?
1.8 Significance of the Current Research
The current research would be able to provide detailed information to the readers, making them well aware of corruption and its effect. Reading the current research the private and the government companies in Malaysia would be able to improve their financial transaction and would take necessary steps to mitigate the issues, using the hinted and discussed solutions. The current research, in a general sense would help the entire country of Malaysia to recover from the adverse situation they are in due to high level of corruption, thereby, making the research significant.
1.9 Dissertation Structure
Figure 1: Structure of the Dissertation
(Source: Learner)
1.10 Summary
The current chapter provides the initial details that are needed for a reader to get an idea about the research. The chapter introduces the topic of the research, provides details about the aims, objectives and research questions. In addition, the chapter also gives brief description of the rationale, significance and structure of the research, thereby, helping the readers to get a proper idea about the following chapters. The current chapter paves the way for the literature review chapter, in which the mentioned aim, objectives and questions will be used as the base for selecting discussion topics and associated aspects.
Chapter 2: Literature Review
2.0 Introduction
In the current chapter, the through concepts, aspects, perspectives and themes have been included, which are closely related to the current research topic and the variables included in the title. The current chapter would help to understand better about the variables on a critical degree and would help in meeting the demands of approaching in the right direction.
2.1 Concept and Causes of Corruption
Corruption is the unethical practices, under the influence of which a person in power makes improper use of his or her designation to exploit resources from others by doing favours, which are either unethical or should have been done as a part of the task, the person is empowered with. As mentioned by Zhang et al. (2016), corruption is the malpractice of resource catering in unethical ways, while being an active part of a legal system. The human nature has been positioned as a major cause of corruption. As opposed by Williams and Dupuy (2017), corruption cannot be viewed as an outcome of human nature. Nevertheless, it is the outcome of resource crunch, legislature loopholes, social practices and perspective towards officials, which regulate the degree of corruption and these are the eminent causes of it.
Another major cause of corruption is the lack of surveillance, which makes the acts that promote corruption such as biased preferences, unethical approvals, bribery and many more. However, as argued by Alm et al. (2016), corruption is the outcome of self-centred mind-set induced with greed and it has nothing to do with legislature, resource availability or surveillance, as corrupt persons find ways of bribery eventually, despite imposition of corruption-restricting measures. Lastly, the unbalanced distribution of power among the general populace and the government officials act as a reason of corruption, as the government officials use their power to enforce the general populace to get engages in corruption either forcibly or on their will.
2.2 Factors Affecting Corruption
Firstly, there is the factor of population and resource availability. As mentioned by Victor Hartman and CIA (2016), in order to meet the demands of a large population, higher amount of resource is required, otherwise the general development and standard of living declines, promoting corruption. In countries, where the resources are ample to satisfy the needs of the entire population or majority of it, there rate of corruption remains low, whereas a large population with limited resources are found to be more susceptible to corruption.
Secondly, the ethical abidance of the politicians in a country regulates the degree of corruption practices among the masses and the officials. As affirmed by Uberti (2016), the acts of top politicians, who control the system of a country, are perceived as the role models and his or her ideologies celebrated, therefore, any politician found engaged in corruption, promotes corruption among the masses, while an honest and incorrupt politician in power restrains corruption though inspiration and value promotion.
Thirdly, the transparency, in the contexts of monetary dealing and knowledge of government functionality, is a major factor that regulates corruption. As assessed by Forson et al. (2016), when the public of a country becomes aware of the legal and official systems in details, they do not rely upon the government officials for their directions and guidance. Instead, the public argues about the actions of the officials and disagree to provide bribes of any sort to them. On the other hand, a national system, about which the public has no idea, makes them agree to pay bribe to the government officials, for proper execution of their required tasks. Hence, this promotes corruption.
2.3 Corruption at Social Level
Corruption is often found to be in practice as a part of the society. The values and ethical perspective of a society, as mentioned by Warf (2016), determines the inclination towards corrupt practices. In societies, where the ethical values are less prioritised, corruption is perceived as a benefit enjoyed by the powerful in contrast to the general population of the country or area within a fixed political boundary. In certain societies, in which bribery is seen as a mode of making official tasks faster, the citizens offer bribes to the officials and promote corruption. In societies, which are highly crowded and have no fixed rules in terms of getting the approval of officials, the rate of corruption tends to be high as the officials use the lack of transparency in systems and flexibility of rules for their benefits.
2.4Impact of Corruption on Economy of a Country
All the corrupt activity is conducted with the sole purpose of securing future store of assets and resources, especially monetary resources. In a corrupt economy, as mentioned by Dimant and Schulte (2016), a major section of the total monetary resources get trapped into the hands of a limited number of people, which makes the available monetary resources distributed among the larger population, making undermining contribution for their development. As, lesser amount of money reaches the greater masses of a country, as identified by Talvitie (2017), the pressure on the value of the currency increases resulting in inflation higher values of commodities and slower economic growth. The laundering of money by a small section of the society makes the difference between the upper and lower segment of the economic groups more distant, which hampers the collective growth of the economy. The economy, due to its high differential ratio of monetary resource further generates resource crunch, which increases corruption.
2.5 Impact of Legislature on Corruption
The framework of legislature, its norms, the degree of control over system, the provisions for legal offenders and the functional patter of the processing of actions determine the degree of corruption in a sovereign country. As mentioned by Turedi and Altıner (2016), a properly laid out legislature reduces corruption, while an improper legislature fails to regulate corruption. However, as argued by Andersson (2017), the legislature and its effective does not regulate the degree of corruption at all, as in every legal system, the people with power and resources tend to get away event being proven corrupt in general. The legislature of all country vests higher power upon their government officials, which makes them in control of government processes and proceedings, positioning at an advantage for taking bribes and promote corruption. In addition, the legal loopholes in legislatures tend to have a equally proportional ratio with corruption in a country.
2.6 Comparative Study of Corruption in Malaysia with Other Countries
In terms of Global Corruption Index Report 2018, Malaysia has retained its spot at 47, which is significantly better than larger economies such as India and China, which rank 78 and 87 respectively. Based on the previous rankings of Malaysia, it has become clear that the country has taken measures to restrict its high degree of corruption and has improved its rank further. However, in terms of its Global Corruption ranking among Malaysia’s neighbouring countries such as Singapore and Brunei, the results show its high degree of corruption, as the mentioned neighbours rank 3 and 31 respectively (Transparency International, 2018).
In case of the laundered money, Malaysia is seen to have corruption rooted deep in its political system, as the country has experienced period swindles of huge amounts of money that has slowed down the development. After the 1 Malaysia Development Berhad, nearly $4.5 billion was accounted to be stolen, whereas in Singapore the average corruption percentages are less than the global average. (Singapore’s average is 20%, while global average is 25%), (Malay Mail, 2018 and PricewaterhouseCoopers, 2018).
It terms of GDP losses Malaysia accounted a loss of RM47 Billion, while in case of India, the GDP losses has been an average of 5% over the years (Malay Mail, 2018 and The Wire, 2017). Considering the losses registered by both the countries and comprehending their size, population and legislature in the context it can be said that Malaysia is significantly ahead of India, whoever, the degree of monetary losses it is losing out though corrupt practices needed to be stopped. In case of India, the government actions on corruption and black money has generated a prospect of higher GDP growth and lower corruption, while Malaysia is yet to undertake large scale initiative for reducing corruption.
2.7 Causes of Corruption in Malaysia
Firstly, the extended retention of political power by the same political party has been a major reason for high corruption in Malaysia. Barisan Nasional party has ruled Malaysia for 61 years, which makes it evident that the people positioned in power used their constant positions for corrupt activities. Although the change in the political power in 2018 is a remarkable event in the history of the country, it logically assumed that it would take long to recover from the corruption (The Conversation, 2018).
Secondly, the lack of transparency in government system, that does not allow regular citizens to access the information of government dealings, norms and regulations of system, is another major factor that increases corruption in Malaysia. As the local people do not get to know the system of development of a government task, they tend to rely entirely onto the government officials, of which the employees take advantage of (New Mandala, 2015). Thirdly, the Malaysian legislature is highly inspired by the British Legislature, although both the countries’ political, social and economic conditions are different, therefore, the...