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LAST_UPDATEMon, 20 Nov 2017 2am

Malaysia Ranks Fifth In Illegal Capital Outflow, According To US-Based Anti-Graft NGO

Pic: GlobalFinancialIntegrityPic: GlobalFinancialIntegrity

Malaysia has found its way into many top ten lists lately for various achievements but if there is one list we should try our hardest to get out of, its being ranked top 10 for illegal capital outflow.

In the latest report released in December 2014 by the Global Financial Integrity, a US-based non-profit financial research and advisory organization, Malaysia holds the unenviable fifth ranking globally, after China, Russia, Mexico and India for illicit financial outflow for the years 2003 - 2012.

In total, Malaysia's accumulated illicit capital outflows amounted to US$394,869 million, which is over RM1.3 trillion. It is dubious honor indeed to be ranked with industrial powerhouses like China and Russia in this top ten list.

In retrospect, Malaysia has dropped from 4th place last year to this year's fifth position, which is a small consolation.

The table above ranks all countries by the highest average annual illicit financial flows over the decade (when data is available). (in millions of U.S. dollars, nominal)The table above ranks all countries by the highest average annual illicit financial flows over the decade (when data is available). (in millions of U.S. dollars, nominal)

When last year's results were made public by the Global Financial Integrity, Asian Strategy and Leadership Institute chairman for public policy studies Tan Sri Ramon Navaratnam had stated in an interview with a local news daily that “the most prudential way to address the large illicit capital outflows..is to find out the causes of the problem and then address it at the root." 

Among the steps outlined by the report to curb illicit capital outflow is to step up financial monitoring and adopt best practices in anti-money laundering, beneficial ownership of legal entities, automatic exchange of global financial information, insist on country-by-country reporting for multinational corporations and step up efforts to curtail trade misinvoicing.

- mD