Malaysia's improved CPI score boosts investor confidence - Economist
Cleaner image, bigger investments?
SHAH ALAM - The rise in Malaysia's Corruption Perceptions Index (CPI) score from 47 to 50 in 2023 signifies positive progress in the fight against corruption, potentially enhancing investor confidence and contributing to long-term economic vitality, according to economist Dr Mohd Faisol Ibrahim.
Faisol highlighted that the improvement, regardless of ranking, paints a favorable picture of the government's anti-corruption efforts.
"This fosters trust among existing and potential investors, indicating a commitment to preventing corruption and eliminating cost inflation caused by such practices.
"Investors can perceive this as a sign of transparent governance in policymaking, economic management, and investment processes, leading to increased trust and confidence.
"This could ultimately encourage them to invest in Malaysia, anticipating a return to robust economic growth exceeding the current moderate rate," he told Sinar when contacted.
While applauding the progress, Faisol stressed the need for further efforts to achieve the ambitious goal of placing Malaysia among the top 10 corruption-free nations.
He believed this feat could significantly boost Gross Domestic Product (GDP) growth by attracting large-scale foreign investment driven by enhanced investor confidence.
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