CORRUPTION PERCEPTIONS INDEX 2021

1 A Nation without CORRUPTION ; A Society with IntegrityCORRUPTION PERCEPTIONS INDEX 2021Dr Muhammad MohanPRESIDENT TI-MALAYSIA25 JANUARY 2022A Nation without CORRUPTION ; A Society with IntegrityA global (180countries/territories) aggregate INDEX (up to 13different data sources) capturing PERCEPTIONS (experts/business people) of CORRUPTION (abuse of power for private gain)in the public sector (public officials and institutions)WHAT IS CPI ?2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityWHAT DOES THE CPI MEASURE?All of our sources measure public sector CORRUPTION , or certain aspects of public sector CORRUPTION ,including: Bribery Embezzlement/ Diversion of publicfunds The government s ability to enforceintegritymechanisms The government s commitment to fight CORRUPTION Disproportionate restriction on freedom of expression, association and assembly Useofpublicofficeforprivategain AccessforCivilSocietytoinformationonpubl icaffairs Statecapturebynarrowvestedinterest Theeffectiveprosecutionofcorruptofficial s Redtapeandexcessivebureaucraticburden Adequatelawsonfinancialdisclosure,confli ctofinterestpreventionandaccesstoinforma tion Legalprotectionforwhistleblowers,journal istsandinvestigators2021 CPI RESULTSA Nation without CORRUPTION .

2 A Society with IntegrityCPI DOES NOT CAPTURE:Based on the dimensions included in our external sources, the following aspects are not captured in the CPI: Citizens PERCEPTIONS or experience oncorruption Taxfraud Illicit financialflows Enablers of CORRUPTION (lawyers, accountants, financialadvisorsetc.) MoneyLaundering Any type of private sectorcorruption Informal economies and markets2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegritySURVEY Stiftung Transformation INDEX Intelligence Unit country Risk Service Insight country Risk Ratings World Competitiveness Center World Competitiveness Yearbook Executive Opinion Survey and Economic Risk Consultancy Asian Intelligence PRS Group International country Risk Guide Economic Forum Executive Opinion Survey Justice Project Rule of Law INDEX Expert Survey of Democracy (V-Dem) Development Bank country Policy and Institutional Assessment Stiftung Sustainable Governance Indicators HouseNations in Transit Bank country Policy and Institutional Assessment 2021 CPI RESULTSA Nation without CORRUPTION .

3 A Society with IntegrityMETHODOLOGY 4 STEPSSTEP 1 STEP 2 STEP 3 STEP 4 Select Data SourcesRescale & Standardise Data SourcesCalculate the AverageReport Uncertainty2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityRESCALING SOURCESR everse the data (if necessary) Low number = Highly corrupt High number = Very cleanStandardise original data to z scoresStandardise data to CPI scale (0-100) Transform Z scores to 0-100 scale Fix the spread of data to have a max 100, min 02021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityCALCULATING THE AVERAGE At least three data sourcesfor eachcountry Simple average ofscores EachCPI score is accompanied by a Confidence Interval & Standard Error2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityEXTERNAL AUDIT theCorruptionPerceptionsIndex(CPI),besid esbeingappealingforreasonsoftransparency andreplicability,isalsoconceptuallyandst atisticallycoherentandwithabalancedstruc ture( )" :Updateformulaforcalculationofstandarder rorsConducted by European Commission Joint Research Centre2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegritySOURCES What makes a valid source?

4 Methodological reliability andinstitutional reputation Conceptual alignment of the data Cross country comparability Multi year data availability2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityWHY DO WE STILL NEED THE CPI?Coverage:TheCPIcoversmorecountriesth ananyoftheindividualsourcesaloneStatisti calreliability:TheCPIisbetterthanthesumo fitspartsasitcompensatesforeventualerror samongsourcesbytakingtheaverageofatleast 3differentsourcesandasmanyas13 Precision:TheCPI sscale(0-100)introducesmoreprecisioninco mparisontoothersourcesthatmayhavescaleso f1-5or1-7(andwheremanycountriesareequall yranked)Neutrality:TheCPIreconcilesdiffe rentviewpointsontheissueofpublicsectorco rruption,itisalsomoreneutralwhenhandling differentpoliticalregimesThe external audit re-iterated that the CPI is an important globalindicator for the following reasons: 2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityCPI 2021 MAP2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityGlobal Highlights2021 CPI RESULTSA Nation without CORRUPTION .

5 A Society with IntegrityGlobal Highlights2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityGlobal Highlights2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityHealthcare Spending to GDP & CPI Score-MalaysiaSource: Transparency to GDPA Nation without CORRUPTION ; A Society with IntegrityCorruption & Human Rights2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityCPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityTOP 10 COUNTRIES80818284858585888888 GermanyLuxembourgNetherlandsSwitzerlandS wedenSingaporeNorwayNew ZealandFinlandDenmark2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityBOTTOM 10 C0 UNTRIES111313141616161717190246810121416 1820 South SudanSyriaSomaliaVenezuelaYemenKorea, NorthAfghanistanLibyaEquatorial GuineaTurkmenistan2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityRegional Highlights2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityYEARSCORE 1 RANK 220214862 Notes:1.

6 100 (very clean) to 0 (highly corrupt)2. 180 countries ranked for all 3 years20205157201953512019 2021 MALAYSIA s SCORE2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityResult AnalysisA Nation without CORRUPTION ; A Society with Integrity20192021 CPI BAROMETER2021 CPI RESULTSDrop of 5 points in 3 yearsA Nation without CORRUPTION ; A Society with IntegritySURVEYS Stiftung Transformation Index49532 Economist Intelligence Unit country Risk Service55553 Global Insight country Risk Ratings59594 IMD World Competitiveness Center World Competitiveness Yearbook Executive Opinion Survey43515 Political and Economic Risk Consultancy Asian Intelligence38356 The PRS Group International country Risk Guide41417 World Economic Forum Executive Opinion Survey 54628 World Justice Project Rule of Law INDEX Expert Survey48529 Varieties of Democracy (V-Dem)4954 Total:Aggregate:43646248512021 CPI RESULTSA Nation without CORRUPTION .

7 A Society with IntegrityASEAN COUNTRIESCOUNTRY country Score Rank2021202020212020 Singapore 858543 Brunei -60-35 Malaysia 48516257 Indonesia 383796102 Thailand3536110104 Philippines 3334117115 Vietnam 393687104 Myanmar2828140137 Laos 3029128134 Cambodia23211571602021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegritySELECTED ISLAMIC COUNTRIESCOUNTRY country Score Rank2021202020212020 UAE69712421 Qatar63633130 Brunei Darussalam-60-35 Oman52545649 Saudi Arabia53535252 Malaysia48516257 Jordan49495860 Senegal43457367 Tunisia44447069 Maldives404385752021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityMALAYSIA S SCORE 2012 to 20211 MDB Case Surfaced49505250494747535148424446485052 5420122013201420152016201720182019202020 21GE 14 Change of GovernmentChange of GovernmentNACPL aunched2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityPositive Developments Signing of an MOU between the Government & Pakatan Harapan which includes: Reducing the minimum voting age to 18 and automatic voter registration Malaysia Agreement (MA) 63 Anti-Hopping Law or Recall Elections Parliamentary Reforms Limiting the tenure of the PM in office to 10 years Judicial independence on CORRUPTION cases2021 CPI RESULTSA Nation without CORRUPTION ; A Society with IntegrityWhy has Malaysia s Score Digressed?

8 Institutional reforms have stalled Last 4 governments have lacked political will to table thePolitical Financing Bill. As a result money politics is still rampant, both during elections and as aschemefor CORRUPTION Proposed IPCMC Bill was revised to a watered down, ineffective IPCC Bill No progress on reforms to MACC recommended in 2015 Acquittal or Discharge Not Amounting to Acquittal (DNAA) to high profile personalities in several CORRUPTION cases with no clearclarification from the AG s Office No closure yet on the two cases of high impact to the country SRC & 1 MDB Suspension of Parliament during the MCO. Huge stimuluspackageswere pushed through without parliamentary debate and scrutiny Continued lack of political willfrom various administrations in fighting institutional corruption2021 CPI RESULTSA Nation without CORRUPTION ; A Society with Integrity Appointmentofpoliticianswithoutexperienc etoheadGLCs/GLICs Limitedprogressorpublicupdateonhighprofi lecases WangKelianSabahWaterLittoralCombatShip(L CS) GovernmentProcurementBillisyettobetabled inParliament LackofprogressonamendmentstotheWhistleBl owerProtectionAct2010 Continuedadversefindingsandrepeatedgover nancefailuresobservedintheAuditorGeneral sannualreport Lackofactionagainstpublicofficialsfoundt ohaveabusedtheirposition Slowprogressonthevariousinitiativeswithi ntheNationalAnti-CorruptionPlan s(NACP)2021 CPI RESULTSWhy has Malaysia s Score Digressed?

9 A Nation without CORRUPTION ; A Society with Integrity Narrow the scope of the Official Secrets Act so that matters of public interest directly negotiated contracts can be released and only matters related to national security are protected Share information transparently including uploading data on all public contractsand providing regular updates on the status of pending high profile cases Monitor implementation of the National Anti- CORRUPTION Plan and disclose progress on the 115 initiatives via a public dashboard Empower KSNto be responsible for the public service s role in the successful implementation and achievement of the NACP s goals. This was highlighted last year Adopt International Standards on Integrity Pact in Government Procurement for transparency and good governance. Latest government circular failed to address this issue Improve the power and independence of the Enforcement Agency Integrity Commission(EAIC)TI-M s RECOMMENDATIONS2021 CPI RESULTSFor improved Transparency and Governance practice the government should:A Nation without CORRUPTION ; A Society with Integrity Reform MACC to make it truly independent and report to Parliament.

10 Will require amendment to the MACC Act and the Federal Constitution (as proposed by Civil Society in 2015) Amend the Whistleblower Protection Act 2010 to provide wider reporting channels for the public and strengthen protection for whistle blowers Enactment of an Asset Declaration law to compel all politicians and high ranking public officials to declare their assets and make it accessible to the public Reduce large off budget projectsthat use public funds. Mandate that they have publicly disclosed Cost Benefit reportsand require parliamentary approval before commencing Amend Election Offences Act 1954to include sanctions against CORRUPTION Compel public officialsfound guilty of CORRUPTION to vacate their official positions, even while they exhaust their appeal process IncludeMisconduct in Public Officeas a provision in the MACC Act to hold public officials accountable for their decisions Enact a new Ombudsman lawto investigate complaints involving public interest2021 CPI RESULTSTI-M s RECOMMENDATIONSA Nation without CORRUPTION ; A Society with IntegrityTI-Malaysia A Coalition Member of2021 CPI Implementation of the the tabling of the Political Financing & Transparency of key institutions: MACC AG s Chambers4.