Volume 20 No 12 (2022)
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UNVEILING THE RISKS OF CORRUPTION IN THE MALAYSIAN TELECOMMUNICATION SECTOR
Hartini Saripan , Rafizah Abu Hassan , Normawati Hashim , Ahmad Shukree Md Salleh , Nurus Sakinatul Fikriah Mohd Shith Putera , Mastika Nasrun
Abstract
As the world’s telecommunications field accustoms itself to digital transformation spurring the
global technological revolution, Malaysia is no exception in experiencing this significant change.
The breakneck growth of the telecommunications services charts the substantial demand in the
market and showing the rise of revenue in 2018. The mobile operators contributed a big chunk
to it, equivalent to 64% of the total revenue. Hence, the telecommunications industry is set to
fully embrace the inevitable changes, which come with an evolving communications sector.
Nevertheless, with its high revenue generation, the telecommunication is vulnerable to the risks
of corruption. Therefore, this research aims at investigating the factors leading to the risk of
corruption in the telecommunication sector and the role of Malaysian existing integrity and
transparency policies in reducing or eliminating the risk of corruption posed by the structural and
digital transformation of the telecommunications sector in Malaysia. This research adopted the
doctrinal research approach as systematic means of legal reasoning, analysing the legal
propositions and instrumentalizations from both primary and secondary sources. The primary
sources include statutes, regulations, bye-laws, cases, government circulars and directives,
which will form the legal reasoning on the issue of integrity and transparency in the
telecommunications industry. Furthermore, the secondary sources will also be scrutinised
ranging from journal articles, books and cases commentaries to shape the critiques of the
existing practice and the legal framework in Malaysia. Identifying the factors leading to the risks
of corruptions assists in the development of improved mechanisms in strengthening integrity
and transparency in the Malaysian telecommunications sector as underlined by the National
Anti-Corruption Plan (NACP) 2019-2023. It is indeed a gold standard which aims to further
improve the quality of life in paving the way towards a corrupt-free nation. In this setting, the
research findings indicate that the telecommunication ecosystem is susceptible to layers of the
network, intricate governance systems that imply regular engagement between corporations and
government, scale effects and technological disruption, all of which impede the development of
competitive markets, fair trade and prices establishment as well as the setting of public interestdriven regulations.
Keywords
Corruption in the Telecommunication Sector, Integrity and Transparency in Governance, Governance of the Telecommunication Sector
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