General Objective

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

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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.

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• 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.

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• 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.

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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.

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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, CLIENTS 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.

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WHY DO WE NEED NIP
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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 9.7 PERU 3.7
• NEW ZEALAND 9.5 MEXICO 3.6
• SINGAPORE 9.4 THAILAND 3.3
• SWITZERLAND 8.8 EGYPT 3.3
• UNITED KINGDOM 8.7 TURKEY 3.1
• USA 7.5 RUSSIA 2.7
• JAPAN 7.0 PAKISTAN 2.5
• SPAIN 6.9 PHILIPPINES 2.5
• BAHRAIN 6.1 VENEZUELA 2.4
• TAIWAN 5.7 SUDAN 2.3

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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

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• 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.

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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.

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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

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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.

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• 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.

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COMPONENTS

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

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• RELIGION
• ECONOMY
• POLITICS, AND
• ADMINISTRATION

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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.

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• 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.

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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.

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• 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.

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• 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.

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• 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.

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• 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

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• MOVING FORWARD -FACTORS TOWARDS SUCCESS

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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.

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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.

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

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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.

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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.

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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.

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THANK YOU