Malaysia is ahead of most of its Asian peers in

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  • 16 Mar 2020
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Malaysia Ahead of Asian Peers in Enforcing Anti-graft Law Against Directors

Malaysia is ahead of most of its Asian peers in introducing an anti-corruption law that will hold directors personally liable for graft practices within commercial organisations, says the Institute of Corporate Directors Malaysia (ICDM). ICDM president and chief executive officer (CEO) Michele Kythe Lim said the new provision in the Malaysian Anti-Corruption Commission (MACC) Act 2009, coming into force in June this year, will serve as a “wake-up call” for board members and increase their sense of responsibility. Under the law, a commercial organisation is deemed to have committed an offence if any person associated with it commits a corrupt act in order to obtain or retain business or an advantage in the conduct of business for the commercial organisation. The offence carries a penalty of not less than 10 times the sum of gratification or imprisonment of not more than 20 years. Corporate organisations can raise a defence if they can show that they have “adequate procedures” in place.

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