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By

DATUK DR SULAIMAN MAHBOBPRESIDENT

INTEGRITY INSTITUTE OF MALAYSIA

NATIONAL INTEGRITY PLAN (NIP) ---THE ROLE OF THE PRIVATE SECTOR

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• THE NATIONAL INTEGRITY PLAN (NIP) WAS LAUNCHED BY Y.A.B THE PRIME MINISTER OF MALAYSIA DATO’ SERI ABDULLAH BIN AHMAD BADAWI ON 23 APRIL 2004 AT PUTRAJAYA.

• NIP IS NOW ACCEPTED BY THE GOVERNMENT AS A PLAN OF ACTION TO ENHANCE ETHICS AND INTEGRITY.

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GENERAL OBJECTIVE

THE GENERAL OBJECTIVE OF NIP IS TO REALISE

THE ASPIRATIONS OF VISION 2020, THAT IS,

MALAYSIA TO BECOME A FULLY DEVELOPED

NATION WITH STRONG MORAL AND ETHICAL

VALUES, AND TO ENSURE THAT THE CITIZENS

HAVE GOOD BEHAVIOUR.

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SPECIFIC OBJECTIVES OF NIP ARE AS FOLLOWS:

• GIVING DIRECTION AND GUIDANCE TO VARIOUS SECTORS SO THAT THEY WILL WORK TOGETHER TO BUILD A UNITED, HARMONIOUS, MORAL AND ETHICAL SOCIETY.

• RAISING AWARENESS, COMMITMENT, AND COOPERATION AMONG ALL SECTORS IN THE EFFORTS TO ENHANCE INTEGRITY AND THAT INTEGRITY IS A WAY OF LIFE.

• ENCOURAGING A SENSE OF ACCOUNTABILITY AMONG MEMBERS OF THE COMMUNITY AND TO PROMOTE THE DEVELOPMENT OF CIVIL SOCIETY THAT RESPECTS AND UPHOLDS THE PRINCIPLES OF INTEGRITY.

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• STRENGTHENING THE MORAL FOUNDATIONS OF THE COMMUNITY AND COUNTRY, AND IMPROVING THE WELL-BEING OF THE COMMUNITY.

• RAISING THE COMPETITIVENESS AND RESILIENCE OF MALAYSIA IN MEETING THE CHALLENGES OF THE 21ST CENTURY, ESPECIALLY THE CHALLENGE OF GLOBALISATION.

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INTEGRITY OF INDIVIDUALS

• THE INTEGRITY OF AN INDIVIDUAL INVOLVES WHAT AN

INDIVIDUAL SAYS AND DOES. THERE SHOULD BE

HARMONY BETWEEN HIS ACTIONS AND HIS MORAL AND

ETHICAL PRINCIPLE; BETWEEN SELF AND PUBLIC INTEREST.

IF HIS ACTIONS ARE CONSISTENT IN MANY RESPECTS HE IS

SAID TO BE A MAN OF INTEGRITY. IF HIS ACTIONS PROVE

OTHERWISE HE IS SAID TO HAVE NO INTEGRITY OR OF LOW

INTEGRITY.

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INTEGRITY OF ORGANISATIONS

• APART FROM INDIVIDUALS, ORGANISATIONS ALSO NEED

INTEGRITY. THE INTEGRITY OF ORGANISATIONS IS

REFLECTED IN THE FORMULATION AND IMPLEMENTATION

OF CODE OF ETHICS, CLIENT’S CHARTER OR SYSTEM OF

WORK, OR COMPLIANCE WITH GOOD PRACTICES. THE

ORGANISATIONS’ CODE OF ETHICS ARE MAINTAINED AND

OBSERVED BY MEMBERS. THEY ARE PRACTICED UNTIL

THEY BECOME PART OF THE CULTURE OF ORGANISATIONS.

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WHY DO WE NEED NIP…………

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INTERNATIONAL COMPARISON

• TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTION INDEX 2003

• MALAYSIA IS NO 37 AMONG 133 NATIONS

• SCORE “10” BEST “0” WORST

NATIONS SCORE NATIONS SCORE

FINLAND 9.7 PERU 3.7 NEW ZEALAND 9.5 MEXICO 3.6

SINGAPORE 9.4 THAILAND 3.3SWITZERLAND 8.8 EGYPT 3.3

UNITED KINGDOM 8.7 TURKEY 3.1USA 7.5 RUSSIA 2.7JAPAN 7.0 PAKISTAN 2.5SPAIN 6.9 PHILIPPINES 2.5BAHRAIN 6.1 VENEZUELA 2.4TAIWAN 5.7 SUDAN 2.3ITALY 5.3 UGANDA 2.2MALAYSIA 5.2 LIBYA 2.1TUNISIA 4.9 KENYA 1.9JORDAN 4.6 INDONESIA 1.9SOUTH AFRICA 4.4 NIGERIA 1.4SOUTH KOREA 4.3 BANGLADESH 1.3

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SURVEY FINDINGS ON CORRUPTION

1. 14.9% HAVE GIVEN BRIBES

1. 13.2% READY TO GIVE BRIBES

2. WILLING TO GIVE BRIBES:

- PUBLIC SECTOR 17.9%- PRIVATE SECTOR 39.1%

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• ONLY 43% OF COMPANIES (UNLISTED) SUBMITTED ANNUAL REPORTS TO COMPANIES COMMISSION OF MALAYSIA .

• 4000 CASES WERE FILED AGAINST BUSINESSES AT CONSUMER CLAIMS TRIBUNAL IN 2003.

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INITIAL PHASE OF NIP

• NIP WILL BE IMPLEMENTED IN A SYSTEMATIC AND PLANNED MANNER.

NIP SETS ITS OBJECTIVE IN PHASES OF FIVE YEARS EACH, IN ORDER TO

ENSURE ITS IMPLEMENTATION WILL BECOME A CATALYST FOR THE

MOVEMENT TO ENHANCE INTEGRITY AMONG ALL LEADERS. MONITORING

AND BENCHMARKING OF THE PLAN WILL BE UNDERTAKEN. THIS

ASSESSMENT WILL BE DONE BASED ON THE STANDARDS AND PRACTICES

WHICH ARE COMPATIBLE WITH THE MALAYSIAN SOCIETY AS WELL AS THE

STANDARDS SET INTERNATIONALLY.

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TARGET 2008

FOR THE FIRST FIVE YEARS (2004-2008), NIP SETS FIVE TARGETS, REFERRED TO AS TARGET 2008, NAMELY:

• EFFECTIVELY REDUCE CORRUPTION, MISMANAGEMENT AND ABUSE OF POWER

• RAISE THE LEVEL OF EFFICIENCY IN THE DELIVERY SYSTEMS OF THE CIVIL SERVICE AND OVERCOME BUREAUCRATIC DELAYS

• ENHANCE CORPORATE GOVERNANCE AND BUSINESS ETHICS

• STRENGTHEN FAMILIES AND THE COMMUNITY

• RAISE QUALITY OF LIFE AND SOCIAL WELFARE

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ENHANCE CORPORATE GOVERNANCE AND BUSINESS ETHICS

PERFORMANCE IN THIS REGARD WILL BE MEASURED BASED ON THE FOLLOWING:

• INCREASE IN THE NUMBER OF COMPANIES WHICH COMPLY WITH THE CONDITIONS SET BY MALAYSIA SECURITIES EXCHANGE BERHAD (MSEB)

• REDUCTION IN CORPORATE MISMANAGEMENT

• INCREASE IN NUMBER OF OPEN TENDER UNDERTAKEN IN A TRANSPARENT MANNER AND REDUCTION IN THE NUMBER OF NEGOTIATED TENDER.

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• THE ACCEPTANCE OF RUKUNIAGA AMONG THE CORPORATE SECTOR

• REDUCTION IN CASES OF VIOLATION AGAINST CONSUMER PROTECTION ACT 1999, AND

• OTHER BENCHMARKS USED BY AGENCIES IN THE COUNTRY AND INTERNATIONALLY.

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COMPONENTS

THE COMPONENTS OF INSTITUTIONS INVOLVED IN THESE EFFORTS

• FAMILY

• COMMUNITY

• CIVIL SOCIETY

• CULTURE (EDUCATION, HEALTH, SPORTS AND RECREATION, MEDIA, ARTS, LITERATURE AND HERITAGE)

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• RELIGION

• ECONOMY

• POLITICS, AND

• ADMINISTRATION

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MECHANISM FOR IMPLEMENTATION

• THE IMPLEMENTATION AND COORDINATION OF

INTEGRITY RELATED PROGRAMES IN EACH

COMPONENTS OR INSTITUTIONS IS THE

RESPONSIBILITY OF THE EXISTING AGENCY.

WHERE THERE IS NO MECHANISM AS YET,

EFFORTS MUST BE INITIATED TO DEVELOP SUCH

A MECHANISM.

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• THE PUBLIC SECTOR HAS ALREADY A COMMITTEE FOR INTEGRITY OF

MANAGEMENT AT ALL LEVELS. THE MECHANISM HAS TO BE

STRENGTHENED WITH THE COMMITMENT OF LEADERSHIP IN ORDER TO

MAKE IT MORE EFFECTIVE. FOR THE PRIVATE SECTOR, THERE ARE BODIES

WHICH REPRESENT EMPLOYERS’ INTEREST SUCH AS CHAMBERS OF

COMMERCE AND ASSOCIATIONS WHICH CAN PLAY THIS ROLE.

REGULATORY BODIES, SUCH AS COMPANIES COMMISSION OF MALAYSIA

(CCM), SECURITY COMMISSION (SC) AND CENTRAL BANK OF MALAYSIA

HAVE A ROLE TO ENSURE COMPLIANCE TOWARDS LAWS AND

PROCEDURES.

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IMPLEMENTATION AGENDA FOR ECONOMIC INSTITUTION

• THE ECONOMIC INSTITUTION PROMOTES PROSPERITY OF THE

COMMUNITY AND NATION THROUGH PRODUCTION AND

EMPLOYMENT CREATION. CORPORATE ENTITIES, INCLUDING

MEDIUM-SCALE AND SMALL BUSINESSES ARE ACTIVE IN THIS

FIELD. THEY PLAY IMPORTANT ROLE IN NATIONAL PROGRESS AND

PROSPERITY OF THE MALAYSIAN SOCIETY. IN ADDITION, THESE

ARE ORGANIZATIONS WHICH REPRESENT EMPLOYERS AND

WORKERS’ INTERESTS. THESE ORGANIZATIONS CONTRIBUTE TO

HEALTHY INDUSTRIAL RELATIONS WHICH IN TURN HELP THE

MANAGEMENT OF ECONOMY AND EMPLOYMENT, EFFECTIVELY.

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• THE MAIN ENGINE FOR THE ECONOMY IS THE PRIVATE SECTOR.

THE SUCCESS OF THE PRIVATE SECTOR RELIES UPON OUR ABILITY

TO HANDLE COMPETITION AND THE BUSINESS ENVIRONMENT. IN

THIS CONTEXT, ALTHOUGH THE PRIVATE SECTOR IS THE ENGINE

OF GROWTH AND CREATOR OF JOBS FOR THE SOCIETY, SOME OF

ITS MEMBERS ARE ALSO INVOLVED IN CORRUPTION AND

UNETHICAL PRACTICES. THERE HAVE BEEN SCANDALS INVOLVING

MAJOR COMPANIES IN DEVELOPED COUNTRIES AND IN MALAYSIA.

THIS ILLUSTRATES THE IMPORTANCE OF INTEGRITY AS A MAJOR

AGENDA.

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• PROFIT IS THE MAJOR CONSIDERATION FOR ALL COMPANIES

AND ENTERPRISES. IF CONFRONTED WITH ANY CHALLENGE

THAT IMPACTS UPON PROFITABILITY, THE COST OF

ADJUSTMENT IS OFTEN PASSED UPON THE WORKERS OR

SOCIETY. HENCE THE ISSUE OF ETHICS AND INTEGRITY IN

THE BUSINESS AND ECONOMIC SECTORS IS IMPORTANT.

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• THE ABOVE DEVELOPMENT UNDERSCORES THE

IMPORTANCE OF PROMOTING ETHICS AND INTEGRITY IN

THE ECONOMIC AND BUSINESS SECTORS. GOOD

CORPORATE GOVERNANCE HAS TO BE THE LIFE AND

BLOOD OF THE PRIVATE SECTOR. IT ALSO INDICATES THE

IMPORTANCE OF REGULATIONS AND ENFORCEMENT BY

SUCH BODIES AS COMPANIES COMMISSION OF MALAYSIA

(CCM) AND SECURITIES COMMISSION (SC), TO ENSURE

THAT NEGATIVE PRACTICES ARE ADDRESSED, WHILST

PROMOTING EMPLOYMENT CREATION AND ECONOMIC

PROSPERITY.

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THE AGENDA FOR ECONOMIC INSTITUTION HAS THEFOLLOWING OBJECTIVES:

• STRENGTHENING OF CORPORATE INTEGRITY

• ENHANCING COMMITMENT OF CORPORATE SECTOR TOWARDS SOCIAL ACCOUNTABILITY AND WIDER ADOPTION OF GOOD BUSINESS ETHICS, AND

• PROMOTION OF UNITY BETWEEN ETHNIC GROUPS AND REGIONS THROUGH ECONOMIC ACTIVITIES

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MOVING FORWARD -FACTORS TOWARDS SUCCESS

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LEADERSHIP BY EXAMPLE

• LEADERSHIP IS AN IMPORTANT FACTOR TOWARDS

SUCCESSFUL IMPLEMENTATION OF NIP. LEADERSHIP BY

EXAMPLE MUST BE IMBUED WITH COMMITMENT, VISION,

CLEAR PURPOSE AND HOLDING FAST TO THE PRINCIPLES

OF HONESTY, EFFICIENCY AND SINCERITY AND BEING

EXEMPLARY, PRUDENT, AS WELL AS PEOPLE-FRIENDLY.

LEADERSHIP WITH THIS QUALITY IS A SOURCE OF

INSPIRATION TO THE PEOPLE AS WELL AS HAVING THE

CAPACITY TO MOBILIZE THEM TO ACHIEVE THE OBJECTIVES

OF NIP.

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CONCRETE POLICIES AND CLEAR OBJECTIVES

• THE LEADERS MUST FORMULATE CONCRETE POLICIES THAT

OUTLINE CLEAR, REASONABLE AND IMPLEMENTABLE

TARGETS. POLICY FORMULATION AND TARGET SETTING

HAVE TO TAKE INTO CONSIDERATION VIEWS AND

SUGGESTIONS FROM ALL LEVELS OF SOCIETY AND

SECTORS. A CONSULTATIVE APPROACH THAT IS USED TO

FORMULATE NEEDS OF NIP HAS TO BE CONTINUED.

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FACTORS TOWARDS SUCCESS

COOPERATIONBETWEEN

POLITICAL &MACHINERY

LEADERSHIPBY

EXAMPLEREADINESS TO

CHANGE

EFFECTIVECOMMUNICATION

FACTORS TOWARDSSUCCESS

CONTINUOUSEDUCATION

LEGALFRAMEWORK &INDEPENDENT

JUDICIARY

CONDUCIVE CULTURE

ENVIRONMENT

ADEQUATERESOURCES

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• THE ACHIEVEMENT OF NIP WILL ALSO DEPEND UPON THE

INCULCATION OF VALUES AND NORMS ON A CONTINUING

BASIS AMONG ALL SECTORS AND LEVELS OF THE

SOCIETIES. IN THIS MANNER, GOOD VALUES WILL BE

INTERNALIZED AND PRACTICED UNTIL THEY BECOME

PERMANENT NORMS AND CULTURE OF THE SOCIETY.

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EFFECTIVE COMMUNICATION

• ONE IMPORTANT FACTOR THAT MAY RESULT IN A

FAILURE OF ANY SOCIAL CHANGE, INCLUDING

NIP, IS THE FAILURE TO COMMUNICATE

EFFECTIVELY. HENCE, COMMUNICATION THAT IS

EFFECTIVE CLEAR, FOCUSED AND EASILY

UNDERSTOOD IS ESSENTIAL.

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ADEQUATE RESOURCES

• THE ABOVE FACTORS HAVE TO BE IMPLEMENTED

WITH ADEQUATE MANPOWER WHO ARE TRAINED

AND EFFICIENT. IN ADDITION, ADEQUATE

FINANCIAL RESOURCES AND MODERN

TECHNOLOGY WILL EQUALLY BE ESSENTIAL.

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READINESS TO CHANGE

• IN TERMS OF HUMAN DEVELOPMENT, THE ROLE OF

INDIVIDUAL IS CRITICAL. HIS UNDERSTANDING,

KNOWLEDGE ON MORAL VALUES WHICH HAVE BEEN

PROMOTED THROUGH EDUCATION AND EFFECTIVE

COMMUNICATION, SUPPORT THE EFFORTS TO ENHANCE

INTEGRITY. THE REALIZATION ON THE NEED TO ADDRESS

WEAKNESSES WILL ALSO CONTRIBUTE TO THE

COMMITMENT TO CHANGE. IN THIS MANNER, THE

INDIVIDUALS CONCERNED WILL BE COMMITTED TO THE

EFFORTS TO ENHANCE ETHICS AND INTEGRITY.

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THANK YOU