Factors and impacts of corruption in Malaysia: Developing the Malaysian national anti-corruption strategy 2024-2028
Authors
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Muhammad Iqmal Hisham Kamaruddin
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Malaysia.
https://orcid.org/0000-0001-6619-9882
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Aimi Fadzirul Kamarubahrin
Faculty of Forestry and Environment, Universiti Putra Malaysia, Serdang, Malaysia.
https://orcid.org/0000-0002-3841-1564
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Nathasa Mazna Ramli
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Malaysia.
https://orcid.org/0000-0001-6318-7595
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Ummi Salwa Ahmad Bustamam
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Malaysia.
https://orcid.org/0000-0001-6525-1052
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Mustafa Mohd Hanefah
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Malaysia.
https://orcid.org/0000-0002-0880-6856
DOI:
https://doi.org/10.18488/74.v12i3.4342Abstract
This study examines the causal relationships between the elements of the Fraud Diamond Theory (FDT) pressure, opportunity, rationalization, and capability and their impact on corruption in Malaysia, using the PESTEL analysis, which includes politics, economy, society, technology, environment, and law. A national survey was conducted involving 2,042 Malaysian respondents across all 14 states in Malaysia. For analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM) was adopted to test the hypotheses. The findings reveal that all FDT elements significantly influence corruption across the PESTEL components. Specifically, the social component is most impacted by the pressure element. Meanwhile, the opportunity element is highly associated with political impact. Additionally, rationalization has a strong impact on law. Similarly, law is also the component most affected by the capability factor. These findings were later used as input in the development of the latest Malaysian National Anti-Corruption Strategy (NACS) 2024-2028. Furthermore, the implications align with Sustainable Development Goal (SDG) 16, which advocates for strong institutions, justice, and reduced corruption.
