Malaysia needs to improve CPI ranking to boost investor confidence

SHAH ALAM – Malaysia’s stagnant position at 57th place in the 2024 Corruption Perceptions Index (CPI) needs to be addressed to strengthen foreign investor confidence in the country.

Malaysia University of Science and Technology (MUST) economist Prof Emeritus Barjoyai Bardai said the unchanged score of 50 points since 2023 indicates that transparency remains low compared to other nations.

"While the CPI is not the sole factor influencing investment decisions, it does have an impact, though not a major one," he said.

He urged the government to manage foreign perceptions of Malaysia while also working towards improving the country's CPI ranking.

Barjoyai also pointed out that the government should reassess the free market system that has long been practiced, as it can expose industries to corrupt practices.

"This system makes businesses and industries more susceptible to abuse of power, ultimately affecting the country's CPI," he said.

He added that the government should take this issue more seriously and look at how Hong Kong successfully eliminated corruption within five years, making it a model for tackling such challenges.