NATIONAL INTEGRITY PLAN (NIP)
---THE ROLE OF THE PRIVATE SECTOR
By
DATUK DR SULAIMAN MAHBOB
PRESIDENT
INTEGRITY INSTITUTE OF MALAYSIA
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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
FINLAND
NEW ZEALAND
SINGAPORE
SWITZERLAND
UNITED KINGDOM
USA
JAPAN
SPAIN
BAHRAIN
TAIWAN
ITALY
MALAYSIA
TUNISIA
JORDAN
SOUTH AFRICA
SOUTH KOREA
SCORE
9.7
9.5
9.4
8.8
8.7
7.5
7.0
6.9
6.1
5.7
5.3
5.2
4.9
4.6
4.4
4.3
NATIONS
PERU
MEXICO
THAILAND
EGYPT
TURKEY
RUSSIA
PAKISTAN
PHILIPPINES
VENEZUELA
SUDAN
UGANDA
LIBYA
KENYA
INDONESIA
NIGERIA
BANGLADESH
SCORE
3.7
3.6
3.3
3.3
3.1
2.7
2.5
2.5
2.4
2.3
2.2
2.1
1.9
1.9
1.4
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
- PRIVATE SECTOR
17.9%
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 THE
FOLLOWING 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
READINESS TO
CHANGE
ADEQUATE
RESOURCES
LEGAL
FRAMEWORK &
INDEPENDENT
JUDICIARY
LEADERSHIP
BY
EXAMPLE
CONTINUOUS
EDUCATION
FACTORS
TOWARDS
SUCCESS
EFFECTIVE
COMMUNICATION
CONDUCIVE
CULTURE
ENVIRONMENT
COOPERATION
BETWEEN
POLITICAL &
MACHINERY
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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
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