Economic criticisms of corruption can create an unstable environment for investment and may result in the migration of investors from the country due to lack of competency in curbing such activities said the Sultan of Perak Sultan Azlan Shah.

malaysian law conference 291007 sultan azlan shah 1 The impact of losing foreign investment and multi-national corporations equates to loss of employment, human capital, loss of legitimate tax revenue and loss of capital flows, all positively correlated to development, he said.

Professionals will start looking for greener pastures in other countries for fear that their career and profession would have no future in a country that does not take concerted efforts to curb corruption.

"Many countries have fallen from grace and remain backward in development due to unethical and fraudulent corruption practices that are not controlled," said Azlan Shah when opening the Perak state Malaysian Anti-Corruption Commission (MACC) office complex in Meru Raya in Ipoh today.

Corruption in legislative bodies reduces accountability and distorts representation in policymaking; corruption in the judiciary compromises the rule of law; corruption in public administration results in the unfair provision of services while corruption in sports results in fans feeling cheated.

‘Lead a decent lifestyle’

More generally, corruption erodes the institutional capacity of government as procedures are disregarded, resources are siphoned off, and public offices are bought and sold while corruption also undermines the legitimacy of government and such democratic values as trust and tolerance.

Corruption creates uncertainty, it hampers economic growth and development, and it leads to an unfair and an inequitable distribution of wealth.

The economic impacts of corrupt practices such as nepotism, bribery and embezzlement can slow down economic growth directly and indirectly through adverse effects on human capital and public finance.

Azlan Shah said the people must assist efforts to wipe out corruption and should not in any way assist those involved in corrupt practices.

Moral and religious principles must become a way of life since no culture or religion encourages corruption, he said.

"Lead a decent and healthy lifestyle that is free from corruption to ensure all income derived are legally sourced," he said.

Meanwhile, the Perak MACC office that was built at a cost of RM24.7 million is the first MACC office to be equipped with video interviewing rooms to ensure transparency when carrying out investigations.

- Bernama