Political Risk:
Moderate
Score:
59/100
Defence and Security Policy and Policy Transparency
Q1
42/100
Is there formal provision for effective and independent legislative scrutiny of defence policy?
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Malaysia is a parliamentary democracy in the form of a constitutional monarchy, with His Majesty the Yang di-Pertuan Agong the ceremonial head of state.…
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Although the Parliament has formal rights to scrutinise defence policy, these rights are not exercised in practice, as the formulation of the current National…
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Although the Parliament has formal rights to scrutinise defence policy, these rights are not exercised in practice. The formulation of the current National Defence…
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Q2
33/100
Does the country have an identifiable and effective parliamentary defence and security committee (or similar such organisations) to exercise oversight?
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One of the six new standing committees introduced in the recent parliamentary reform after the 14th General Election (GE14) includes the Defence and Home…
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Only one member of the new Defence and Home Affairs Committee has expertise in the defence sector, Hon. Datuk Abd Rahim bin Bakri, who…
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Prior to the recent parliamentary reform post GE14, the role of scrutiny was solely vested in the PAC. The responses of the PAC, however,…
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The Defence and Home Affairs Committee is too newly established and therefore cannot be assessed. As such, this indicator is marked ‘Not Applicable’.
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The Defence and Home Affairs Committee is too newly established and therefore cannot be assessed. As such, this indicator is marked ‘Not Applicable’.
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The Defence and Home Affairs Committee is too newly established and therefore cannot be assessed. As such, this indicator is marked ‘Not Applicable’.
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Q3
81/100
Is the country’s national defence policy or national security strategy debated and publicly available?
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The currently maintained National Defence Policy (NDP) lacked legislative and public debate prior to and after its inception in 2010. However, public debate has…
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There is no evidence of public debate prior to or after the inception of the current NDP in 2010. However, public debate relating to…
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Whilst the current NDP lacked legislative and public debate and scrutiny prior to and after its release and publication in 2010, the Malaysia Defence…
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The current NDP is available for public consultation in both Malay and English. [1] [2] However, the process of its formulation was kept secret.…
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Q4
67/100
Do defence and security institutions have a policy, or evidence, of openness towards civil society organisations (CSOs) when dealing with issues of corruption?
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There is a informal policy of openness towards civil society organisations (CSOs) when dealing with issues of corruption within MINDEF. In fact, the Ministry…
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Although CSOs theoretically enjoy freedom of operations in Malaysia, their operations are notably limited. There are a number of restrictive laws in place which…
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In anti-corruption initiatives, greater involvement of CSOs can be noted. The Malaysia Anti-Corruption Commission (MACC) consistently works with numerous representatives of CSOs such as…
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Q5
75/100
Has the country signed up to the following international anti-corruption instruments: UNCAC and the OECD Convention?
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Malaysia is a member of a number of notable anti-corruption institutions and is signatory to a number of relevant anti-corruption treaties. Malaysia became a…
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The most recent review by the UNCAC Implementation Review Group on Malaysia’s compliance to UNCAC was published on May 28, 2013 and included Chapter…
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Q6
25/100
Is there evidence of regular, active public debate on issues of defence? If yes, does the government participate in this debate?
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There is limited public debate on issues of defence. Debate is mostly limited to academia and interested parties in the commercial defence sector. Few…
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Within the defence circle in Malaysia, there is growing debate and engagement with public actors. The Malaysia Defence White Paper that was tabled in…
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Q7
88/100
Does the country have an openly stated and effectively implemented anti-corruption policy for the defence sector?
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The new government has stepped up efforts to combat corruption, as a result of the 1MDB grand corruption scandal which saw former Prime Minister…
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Malaysia has released the formulation of the National Anti-Corruption Plan, [1] in which practical goals based on initiatives to be taken by every government…
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Q8
100/100
Are there independent, well-resourced, and effective institutions within defence and security tasked with building integrity and countering corruption?
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There is an Internal Audit and Investigation Division (BADSA) which is tasked with carrying out internal audits and conducting general investigations to ensure compliance…
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Both BADSA and the Integrity Unit are placed under the direct command of and report to the Chief Minister of Defence. [1]
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BADSA actively oversees activities within MINDEF. [1] [2] [3] In 2018, eleven audits were carried out by BADSA within the Ministry of Defence. [4]…
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Q9
NS/100
Does the public trust the institutions of defence and security to tackle the issue of bribery and corruption in their establishments?
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This indicator is not assigned a score in the GDI. The leading anti-corruption agency in Malaysia has adopted the results of two pieces of…
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Q10
75/100
Are there regular assessments of the areas of greatest corruption risk for ministry and armed forces personnel, and are the findings used as inputs to the anti-corruption policy?
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Both the Internal Audit and Investigation Division (BADSA) and the Integrity Unit are tasked with conducting corruption risk assessments. While the Integrity Unit oversees…
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The Auditor General provides an annual assessment and report. [1] However, the Internal Audit and Investigation Division (BADSA) and the Integrity Unit regularly conduct…
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The Ministry’s annual report incorporates both the Internal Audit and Investigation Division (BADSA’s, page 28) and the Integrity Unit’s (page 53) activities and assessments…
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Defence Budgets
Q11
33/100
Does the country have a process for acquisition planning that involves clear oversight, and is it publicly available?
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The Ministry is required to advertise “in at least one local daily in the Malay language. International tenders must be advertised in at least…
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Information on acquisitions for any military and defence-related projects is not made public. The details of acquisitions or the associated process do not appear…
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A Parliamentary Select Committee has been set up by the new government, but the details and acquisition planning progress are still under the strict…
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Q12
38/100
Is the defence budget transparent, showing key items of expenditure? And it is provided to the legislature in a timely fashion?
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The defence budget is available online via the Ministry of Finance’s website. [1] However, it is a general budget outlining related functions without a…
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Once tabled, the annual National Budget Estimate is up for discussion for a maximum of 20 days in the Parliament. [1] The budget proposals…
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Q13
50/100
Is there a legislative committee (or other appropriate body) responsible for defence budget scrutiny and analysis in an effective way?
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Until recently, there was no legislative committee or other appropriate body responsible for the scrutiny and analysis of the defence budget. The formulation of…
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This indicator is scored ‘Not Applicable’, as the Special Select Committees are too new and have yet to take action or make decisions. [1]
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Q14
50/100
Is the approved defence budget made publicly available? In practice, can citizens, civil society, and the media obtain detailed information on the defence budget?
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The formulation of the annual defence budget is done internally by the Ministry of Defence (MINDEF) and is submitted to the Budget Division of…
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The approved budget is available online for public consumption through the Treasury’s website. [1] However, the budget is general in nature and lacks transparency…
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In accordance with the National Anti-Corruption Policy (NACP), MINDEF has stepped up efforts to become more transparent. [1] Most information, including with regard to…
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Q15
100/100
Are sources of defence income other than from central government allocation (from equipment sales or property disposal, for example) published and scrutinised?
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The totality of the Ministry of Finance (MINDEF)’s budget comes from the central government and there are no other sources of defence income. All…
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The totality of the Ministry of Finance (MINDEF)’s budget comes from the central government and there are no other sources of defence income. All…
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The totality of the Ministry of Finance (MINDEF)’s budget comes from the central government and there are no other sources of defence income. All…
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Q16
63/100
Is there an effective internal audit process for defence ministry expenditure (that is, for example, transparent, conducted by appropriately skilled individuals, and subject to parliamentary oversight)?
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An Internal Audit Unit is an essential requirement in every ministry and government agency in Malaysia. The government, through the Ministry of Finance, has…
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Oversight previously was not possible since there was no special parlimentary committee for defence and security; however, a committee was set up in December…
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The process requires internal audit reports to be made available and submitted to the Ministry of Finance every year. The reports are examined by…
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Although the audit findings have highlighted several issues in the reports, the Ministry’s response appears to have been selective and purposely slow, especially when…
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Q17
63/100
Is there effective and transparent external auditing of military defence expenditure?
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The National Audit Department and Auditor General’s functions and powers are enumerated in Articles 105, 106, and 107 of the Federal Constitution. Its legal…
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The Auditor General Office is set up under the Federal Constitution, Article 146. Under the Constitution, the Auditor General is “appointed by the Yang…
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The full annual reports of all government agencies and ministries are available on the official Portal of the Department of the Auditor General. The…
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There are a number of examples such as the land-swap deal and the non-delivery of six helicopters, which illustrate how the Ministry of Defence…
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Nexus of Defence and National Assets
Q18
80/100
Is there evidence that the country’s defence institutions have controlling or financial interests in businesses associated with the country’s natural resource exploitation and, if so, are these interests publicly stated and subject to scrutiny?
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It is outlined in Regulation 5(1)(a) of the Public Officers (Conduct and Discipline) Regulation 1993 that public officials may not, directly or indirectly, participate…
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The only defence institution with evident involvement in businesses associated with Malaysia’s natural resource exploitation is the Armed Forces Fund Board (Lembaga Tabung Angkatan…
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The researcher was unable to find any reported cases of individual defence personnel involved in businesses relating to the exploitation of natural resources in…
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Details on LTAT activities are reflected in its annual reports, which detail sources of income, operations, and expenditure. The reports are made public through…
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LTAT is subject to annual external audits by the Attorney-General’s Office which are tabled in Parliament for adoption. [1] Furthermore, the national anti-corruption agencies…
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Organised Crime
Q19
88/100
Is there evidence, for example through media investigations or prosecution reports, of a penetration of organised crime into the defence and security sector? If no, is there evidence that the government is alert and prepared for this risk?
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There is no evidence of organised crime penetration in the defence and security sector. The government is continuously on high alert and is prepared…
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While there is no evidence of organised crime penetration in the defence and security sector, it is evident that the government is aware of…
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Q20
100/100
Is there policing to investigate corruption and organised crime within the defence services and is there evidence of the effectiveness of this policing?
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There is a military police unit within the armed forces, although its functions beyond providing training and maintaining discipline are unclear and even the…
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The MACC, [1] the Special Branch of the Royal Malaysian Police Force [2] and the Crime Prevention Board are all independent bodies and are…
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There has been no evidence of organised crime penetration in the defence sector, therefore the effectiveness of the Special Branch of the Royal Malaysian…
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Control of Intelligence Services
Q21
0/100
Are the policies, administration, and budgets of the intelligence services subject to effective and independent oversight?
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The Auditor General Office (AG) is the only independent body that oversees all budget expenses of government machineries, but it never issues public reports…
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This indicator is scored Not Applicable. The Auditor General Office (AG) is the only independent body that oversees all budget expenses of government machineries,…
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Q22
50/100
Are senior positions within the intelligence services filled on the basis of objective selection criteria, and are appointees subject to investigation of their suitability and prior conduct?
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Senior appointments and promotions also go through rigorous vetting in addition to the background checks that are conducted for all intelligence officers. The criteria…
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The appointment of senior officers to the National Defence Intelligence Office (BSPP) is not without political influence as outlined in 22A. No specific inside…
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There is a vetting process whereby any senior appointments must be vetted by the Military Council, which is chaired by the Chief of the…
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Export Controls
Q23
50/100
Does the government have a well-scrutinised process for arms export decisions that aligns with Articles 7.1.iv, 11.5, and 15.6 of the Arms Trade Treaty (ATT)?
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Malaysia signed the Arms Trade Treaty (ATT) on September 26, 2013, but has yet to ratify it [1].
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Malaysia has yet to ratify the ATT, which it signed on September 26, 2013. [1] As such, this indicator is scored Not Applicable.
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Malaysia does not produce or export arms. [1] As such, this indicator is scored Not Applicable.
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Lobbying in Defence
There is no written law to regulate lobbying in defence institutions. [1] [2] There is also a lack of regulation and oversight on defence…
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This indicator is marked Not Applicable as Malaysia does not regulate the lobbying of defence institutions. [1] Most of the lobbying is done through…
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This indicator has been marked Not Applicable, as the country does not have legislation that regulates lobbying in the defence sector. Malaysia does not…
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This indicator has been marked Not Applicable, as the country does not have legislation that regulates lobbying in the defence sector
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