This article first appeared in The Edge Financial Daily on December 12, 2018

KUALA LUMPUR: Malaysia has made the biggest gain in this year’s Asian Corporate Governance Association’s (ACGA) survey, rising three spots to fourth place.

The 2018 CG Watch report ranked Malaysia fourth out of 12 Asia-Pacific economies in terms of market accountability and transparency, said Finance Minister Lim Guan Eng.

“This is a significant improvement from seventh place in 2016 when the report was previously published. This means Malaysia is the biggest 2018 gainer among regional rivals that include Australia, China, Hong Kong, Japan and Singapore,” Guan Eng said in a statement.

He said the ACGA had noted the improvement reflects Malaysia’s “concrete moves” in tackling endemic corruption issues fostered by the previous administration.

The improvement, he added, proves the government’s continuous effort in instilling the principles  of competency, accountability and transparency in its administration is bearing fruit.

“The report states the jump is based on optimism over the May 9, 2018 political change in Malaysia, translating into ‘tangible improvements to enforcement and reporting’.”

Apart from the anti-corruption measures undertaken, Guan Eng said the government has ensured the open tender system is widely implemented that not only increases transparency in the public sector, but also has had a positive impact on the local market.

“Applying a zero-based budgeting and migrating towards accrual accounting from cash accounting by 2021, as announced in Budget 2019, are also part of the government’s wider institutional reform agenda that will further raise accountability and transparency in the government.”

Guan Eng said the improvement in ranking is only one example on how the government’s institutional reform agenda is raising Malaysia’s governance quality and contributing to fiscal sustainability.

“The biggest proof that the government’s plan is working can be seen in the surge of approved foreign direct investments in manufacturing of 379% year-on-year since May 2018 as reported by the Malaysian Investment Development Authority.”

These institutional reforms by the government have also convinced the top three rating agencies to maintain Malaysia’s sovereign credit ratings at A- or A3, with Moody’s being the latest to have done so, Guan Eng noted.