1. DATUK DR SULAIMAN MAHBOB INTEGRITY INSTITUTE OF MALAYSIA
NATIONAL INTEGRITY PLAN (NIP)
---THE ROLE OF THE PRIVATE SECTOR By
DATUK DR SULAIMAN MAHBOB
PRESIDENT
INTEGRITY INSTITUTE OF MALAYSIA

2. THE NATIONAL INTEGRITY PLAN (NIP) WAS LAUNCHED BY Y. A
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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. WHY DO WE NEED NIP…………

9. INTERNATIONAL COMPARISON
TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTION INDEX 2003
MALAYSIA IS NO 37 AMONG 133 NATIONS
SCORE “10” BEST “0” WORST
NATIONS SCORE NATIONS SCORE
FINLAND PERU 3.7
NEW ZEALAND MEXICO 3.6
SINGAPORE THAILAND 3.3
SWITZERLAND EGYPT 3.3
UNITED KINGDOM TURKEY 3.1
USA RUSSIA 2.7
JAPAN PAKISTAN 2.5
SPAIN PHILIPPINES 2.5
BAHRAIN VENEZUELA 2.4
TAIWAN SUDAN 2.3
ITALY UGANDA 2.2
MALAYSIA LIBYA 2.1
TUNISIA KENYA 1.9
JORDAN INDONESIA 1.9
SOUTH AFRICA NIGERIA 1.4
SOUTH KOREA BANGLADESH 1.3

10. SURVEY FINDINGS ON CORRUPTION
14.9% HAVE GIVEN BRIBES
13.2% READY TO GIVE BRIBES
WILLING TO GIVE BRIBES:
- PUBLIC SECTOR 17.9%
- PRIVATE SECTOR 39.1%

11. 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.

12. 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.

13. 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

14. 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.

15. 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.

16. COMPONENTS THE COMPONENTS OF INSTITUTIONS INVOLVED IN THESE EFFORTS
FAMILY
COMMUNITY
CIVIL SOCIETY
CULTURE (EDUCATION, HEALTH, SPORTS AND RECREATION, MEDIA, ARTS, LITERATURE AND HERITAGE)

17. RELIGION
ECONOMY
POLITICS, AND
ADMINISTRATION

18. 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.

19. 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.

20. 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.

21. THE MAIN ENGINE FOR THE ECONOMY IS THE PRIVATE SECTOR
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.

22. PROFIT IS THE MAJOR CONSIDERATION FOR ALL COMPANIES AND ENTERPRISES
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.

23. 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.

24. 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

25. MOVING FORWARD - FACTORS TOWARDS SUCCESS

26. 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.

27. 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.

28. FACTORS TOWARDS SUCCESS
LEADERSHIP BY
EXAMPLE
READINESS TO
CHANGE
CONTINUOUS
EDUCATION
ADEQUATE
RESOURCES
FACTORS
TOWARDS
SUCCESS
EFFECTIVE
COMMUNICATION
CONDUCIVE
CULTURE
ENVIRONMENT
LEGAL
FRAMEWORK &
INDEPENDENT
JUDICIARY
COOPERATION
BETWEEN
POLITICAL &
MACHINERY

29. 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.

30. 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.

31. 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.

32. 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.

33. THANK YOU