Malaysia has a high vulnerability to defence corruption, according to the latest Government Defence Anti-Corruption Index.

Malaysia is among 17 countries assessed in the index conducted by Transparency International (TI), and received a D grade, together with India, the Philippines, Indonesia and Bangladesh.

TI defence and security programme director Katherine Dixon said Malaysia has firm foundations for building accountability and transparency in defence institutions.

“The armed forces are professional and transparent in some critical areas,” Dixon said in a press statement released today.

Nevertheless, she said, greater independent oversight over the defence budget was essential if the risk of public funding being wasted or stolen is to be reduced.

“And in light of the ongoing 1Malaysia Development Bhd (1MDB) case, there has never been a greater need for defence institutions to demonstrate their ethics and integrity,” she said.

The report also highlighted the vital role of the Malaysian Anti-Corruption Commission (MACC) in investigating corruption in defence.

Legislative scrutiny a key gap

However, formal legislative scrutiny over the defence policy is a key gap, as little detail about defence spending is submitted to Parliament in the annual budget estimate, the graft watchdog noted.

Across the region, New Zealand, Australia, Taiwan and Japan topped the index with strong institutional controls over military spending and policy.

South Korea, where the government has taken a strong public stand against defence corruption, also scored ahead of the regional average.

Six of the 17 states assessed in the index were placed in either the E or F grade, representing either a 'very high' or 'critical' risk of defence corruption.

This shows how several Asian powers were at high risk of corruption, posing a threat to stability in the region.

TI therefore urged Asean defence ministers to make a collective commitment to accountability and transparency in defence.

“TI is calling on Asean defence ministers, which are meeting in Malaysia for the Third Annual Defence Ministerial Plus, to take the lead in setting new Asean standards for defence institutions.”

The Government Defence Anti-Corruption Index assesses the existence and effectiveness of institutional and informal controls to manage the risk of corruption in defence and security institutions and of their enforcement.

Evidence is drawn from a wide variety of sources and interviewees across 77 indicators to provide the government with a detailed assessment of the integrity of their defence institutions.