Money Politics Keeps Crony Capitalism Going Says C4 Chairman

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Anti-graft activist Edmund Terence Gomez says cronyism has been a feature in Malaysian politics and the economy since the 1980s.PETALING JAYA: Crony capitalism remains difficult to eliminate because of deep-seated money politics in the country, says anti-corruption campaigner Edmund Terence Gomez.
He said proposals and recommendations to tackle the problem had long been submitted to the government by civil society organisations yet no reforms had been enacted.
Gomez, who is chairman of the Centre to Combat Corruption and Cronyism, said the government did not have to “reinvent the wheel” and could simply take what has been proposed as legislative reforms.
However, he was doubtful the necessary reforms would be implemented soon given the current political situation.
“(Numerous political) leaders who have taken power have talked about dealing with corruption and breaking the nexus between politics and business and thereby bringing an end to this problem of cronyism,” said Gomez, a former professor of economics who has written extensively about Malaysia’s political economy,
“This has not happened because this link between politics and business, which facilitates the flow of money from the corporate sector as well as GLCs into the political system, is imperative in this period when politicians and different parties are trying to consolidate power,” he told FMT.
He said the close relationship between business and politics was evident from the court cases involving high profile politicians, such as former prime minister Muhyiddin Yassin and former finance minister Lim Guan Eng, who are both facing graft charges.
Gomez said Malaysia’s high ranking on the Economist’s 2023 crony capitalism index was not surprising as there have been no sustained or concerted efforts to eliminate cronyism,
Malaysia was ranked third behind Russia and the Czech Republic in the Economist index, released on Tuesday. The UK-based weekly said the wealth of Malaysian billionaires accounted for a tenth of the country’s 2023 gross domestic product.
Ads by KioskedHe said cronyism has been a feature in Malaysian politics and economy since the 1980s.
Ramon Navaratnam, a former deputy secretary-general of the Treasury, said a failure to eliminate cronyism would lead to grave consequences, such as a decline in domestic and foreign investment.
He called for the Malaysian Anti-Corruption Commission to be empowered to investigate anyone suspected of graft and for improvement in governance practices, and tendering procedures.
Navaratnam also urged Putrajaya to eliminate oligopolies and monopolies to increase market competition. - FMT

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