Number of integrity pacts: Not specified

Relevant sectors: Multiple

Governmental levels: National

First integrity pact: Not specified

Most recent integrity pact (project end): Not specified

Integrity pact recognised in country legislation: Yes – as an integrity agreement between contracting authorities and bidders

Transparency International Malaysia introduced the integrity pact (IP) in the late 2000s to address business integrity in state-owned enterprises. Since then, they have been instrumental in promoting the use of IPs and supporting the Malaysian government at the national and regional levels.

In 2010, the Malaysian government introduced a guideline for integrity pact implementation in public contracting. The Malaysian model includes commitments for contracting authorities and bidders concerning integrity and anti-corruption, as well as sanctions for non-compliance. However, it does not establish a monitoring mechanism. Since then, the IPs have been promoted by Malaysia’s Anti-Corruption Commission and, according to TI Malaysia, until 2012, had been used in over 140,000 tenders for government contracts.

In its latest National Anti-Corruption Plan (2019 – 2023), the government continues to endorse the use of integrity pacts to strengthen the Malaysian Public Procurement Framework. As of May 2021, Malaysia had rolled out 29 of the 115 initiatives outlined in the plan. The head of the MACC claimed that between 2018 and 2020, 582,812 IPs had been signed, involving more than 29 billion Malaysian ringgit (US$7 billion) in public procurement contracts.

In early 2022, the government introduced a mandatory IP for all bidders and civil servants appointed to committees that shortlist bidders or those making final decisions on any public contracting project. Prominent anti-corruption experts, including TI Malaysia, have criticised the measure for being just a “paper signing”, which will make very little difference in curbing corruption in public procurement.