Factors and impacts of corruption in Malaysia: developing the Malaysian National Anti-Corruption Strategy 2024-2028

This study examines the causal relationships between the elements of the Fraud Diamond Theory (FDT) pressure, opportunity, rationalization, and capability and their impact on corruption in Malaysia, using the PESTEL analysis, which includes politics, economy, society, technology, environment, and law. A national survey was conducted involving 2,042 Malaysian respondents across all 14 states in Malaysia. For analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM) was adopted to test the hypotheses. The findings reveal that all FDT elements significantly influence corruption across the PESTEL components. Specifically, the social component is most impacted by the pressure element. Meanwhile, the opportunity element is highly associated with political impact. Additionally, rationalization has a strong impact on law. Similarly, law is also the component most affected by the capability factor. These findings were later used as input in the development of the latest Malaysian National Anti-Corruption Strategy (NACS) 2024-2028. Furthermore, the implications align with Sustainable Development Goal (SDG) 16, which advocates for strong institutions, justice, and reduced corruption.

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