Corruption in the Malaysian construction industry: Investigating effects, causes, and preventive measures

Yap, J B H; Lee, K Y; Rose, T and Skitmore, M (2022) Corruption in the Malaysian construction industry: Investigating effects, causes, and preventive measures. International Journal of Construction Management, 22(8), pp. 1525-1536. ISSN 1562-3599

Abstract

Corruption has long plagued the construction industry, more so in the developing world. Given its impact, empirical evidence is needed to gain a deeper insight into the phenomenon. This paper examines the influence of corruption on project outcomes, explores the causes of corruption, and evaluates anti-corruption measures. Drawing on an empirical survey in Malaysia, the significance of the causes and preventive measures are prioritized. The findings suggest that negative encouragement is more likely to induce corruption, followed by the nature of the construction industry, and flawed regulatory systems. As for the preventive measures, enforcement of law, regulations, and sanctions, high integrity and honest construction culture, and effective reporting channel rank the highest. Finally, correlational analysis reveals audit mechanism and code of conduct as the most significant cause-driven preventive measures. The paper sheds new light on the salient issues of construction corruption and recommends feasible measures for its reduction.

Item Type: Article
Uncontrolled Keywords: anti-corruption; causes; corruption; Malaysia; unethical practices
Index terms: construction industry, enforcement, unethical practices, Malaysia, integrity, audit, project outcome, encouragement, corruption, regulation, evidence, regulatory system, drawing, survey
Subjects: technical documentation, ethical practice, project completion, data collection methods, evaluation and assessment methods, political science, industry analysis, professional ethics, performance measurement, management, Geography, health safety and environment
Topics: Human Resources, Quality Management, Design Practice, Legal Issues, Governance, Project Management, Geographical Context, Research Practice, Health and Safety
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here