26/03/2025

WEDNESDAY | MAR 26, 2025

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Economic crime draining billions M ALAYSIA is losing billions of ringgit annually to economic crime involving acts that violate criminal law for financial gain. Economic crime also includes illegal business activities. often goes undetected, and fails to comply with laws and regulatory reporting requirements, while being linked to criminal activities. set to become the largest illegal trade in Malaysia, overtaking narcotics and other illegal activities. Businesses with minimal activities such as restaurants, laundromats, hair salons and car wash act as the front companies for these illegal activities. Bukit Aman’s Commercial Crime COMMENT By Datuk Seri Dr Akhbar Satar

could build four district hospitals with four-lane roads stretching from 50km to 5,000km to the villages. Crucial action Economic crime poses a significant barrier to Malaysia’s development and prosperity, hindering progress and eroding public trust in government and institutions. To win the fight against economic crime, it is crucial that we step up action in the following areas: 0 Putting in place laws that have strong punitive action; 0 Having enforcement agencies that are well led, resourced and independent; 0 A government that prioritises policies which promote transparency, accountability and good governance; 0 Being firm in sanctioning offenders irrespective of their background, including those in positions of authority who collude with and abet those involved in illegal activities; 0 Maintaining a strong and responsive civil service which protects and safeguards our national interest; 0 Finally, we must play our role as responsible citizens to report illegal activities to the authorities. Economic crime has been bleeding Malaysia for too long. Any further delays in firmly addressing it and plugging the leakages can have significant long-term impact on Malaysia’s economic standing and the well-being of our citizens. DatukSeri Dr Akhbar Satar is the president of the Malaysian Integrity and Governance Society. Comments: letters@thesundaily.com

Examples of shadow economy activities include smuggling of weapons, tobacco and drugs, prostitution, tax evasion, illegal and online gambling, passport fraud and human trafficking. However, its scope does not end there. The shadow economy also encompasses unregistered formal sectors and unreported income from the production of legal goods and services, such as unlicensed businesses, freelancers, part-time workers and the cash economy. This extends to substantial income from informal work that is generated by those who have permanent employment. In some cases, this informal income can be larger than their permanent income. Money laundering The UN Office on Drugs and Crime estimates that between 2% and 5% of global GDP, or about US$800 billion to US$2 trillion, is laundered each year. Based on these figures, we can estimate that Malaysia’s economic cost of money laundering is about RM55 billion per year. Money changers are the ideal conduit for money laundering activities as they deal in hard cash and can work in cohorts with their foreign counterparts. Hawala, a popular and informal value transfer system based on the performance and honour of a huge network of money brokers, is solutions that we no longer explore or adapt to new challenges? As our routines become dictated by algorithms, we risk falling into single-track thinking, where discovery and spontaneity give way to passive consumption. This convenience-driven passivity extends beyond consumer habits. “On-demand” culture has reshaped our expectations of time and efficiency. We have grown impatient with delays, however minor. If an online order arrives late, if a streaming video buffers for a few seconds or if a message is not immediately responded to, frustration sets in. We no longer have the patience to wait. This shift is reminiscent of a scene in Aldous Huxley’s Brave New World , where society prioritises pleasure and instant gratification over depth and contemplation. Have we become so fixated on avoiding inconvenience that we are losing our tolerance for patience and effort? More profoundly, this obsession with immediacy is eroding the way we build relationships. Social interactions have been compressed into short messages, emojis and voice notes, replacing meaningful conversations. We have become accustomed to instant connectivity, yet paradoxically, we are lonelier than ever. Studies suggest that despite being more digitally connected, people today report feeling more socially isolated than previous generations. The rise of convenience has not necessarily translated into stronger bonds; rather, it has created a culture where delayed responses cause anxiety, and in-person conversations are replaced by fleeting digital interactions. Call for recalibration At times, human behaviour swings between extremes. There was an era when people overshared on social media, documenting their lives in real-time, only to later withdraw into hyper privacy, wary of surveillance and online exposure. We crave connection yet struggle with the

Investigation Department said there were 41,701 commercial crime cases last year involving more than RM3 billion in losses. The overall debts arising from this case is a staggering RM48.8 billion. Results How is Malaysia faring in terms of tackling economic crimes and reining in corruption? If we look at the illegal tobacco trade, Malaysia has been losing RM5 billion in tax revenue every year. The customs director general has adopted a no-nonsense and no forgiveness approach to fighting corruption, which has resulted in a reduction in the smuggling of illegal cigarettes. In 2024, this firm action helped customs to collect RM65.57 billion in revenue, RM9.57 billion more than what was projected – RM56 billion. Meanwhile, in the case of 1Malaysia Development Bhd, criminal trials are ongoing. Efforts to recover stolen assets have resulted in RM29.75 billion being returned to the government, as reported by MACC. However, are these actions and results sufficient? Can we afford to lose so much money to illegal activities? How is this impacting Malaysia’s economic and social development? A cursory check of the ministries’ budgets shows that RM1 billion

Corruption The United Nations and World Economic Forum estimate the global cost of corruption at 5% of the world’s GDP. With a 2024 GDP of US$115 trillion (RM510 trillion), this equates to US$6 trillion per annum in global stolen funds – surpassing the annual GDP of Japan, the world’s third-largest economy. The Malaysian Anti-Corruption Commission said between 2018 and 2023, Malaysia lost RM277 billion to corruption. This translates to about RM55 billion per year, or RM1,608 for every Malaysian. In the latest Corruption Perception Index by Transparency International, Malaysia’s score remained unchanged at 50 out of 100, where 100 represents very clean and 0 highly corrupt. The country ranked 57th out of 180 nations in the 2024 survey. Shadow economy Apart from corruption, another significant contributor to economic crime in Malaysia is the shadow economy, also known (for obvious reasons) as the underground economy. It is a significant cause of tax revenue losses, with some estimates suggesting the value could be as high as 30.2% of our GDP. It operates in a murky environment that THROUGHOUT history, human ingenuity has been driven by a desire to make life easier. The discovery of fire allowed early humans to cook food, making it safer and more palatable. The invention of the wheel revolutionised transport, enabling people to travel further with less effort. Every major breakthrough, from the printing press to the internet, has been fuelled by the pursuit of convenience. Today, with just a smartphone and an internet connection, we can order food, conduct financial transactions and even consult a doctor without leaving home. The Covid-19 pandemic underscored just how indispensable these conveniences have become. Yet, as we revel in this effortless accessibility, we must also ask: What are we sacrificing in the name of convenience? Paradox of convenience Soren Kierkegaard, the 19th-century Danish philosopher, once argued that much of humanity “sleepwalks through life”, moving passively through existence, driven by habit and ease. We focus on immediate comfort, rarely pausing to examine the deeper realities that shape our decisions. Do we see ourselves in this predicament? Are we so accustomed to convenience that we have stopped questioning its impact on our autonomy, relationships and intellectual growth? The paradox of convenience is that while it is born out of innovation, it can also stifle it. Creativity and problem-solving often emerge from necessity, yet we have delegated much of our decision making to technology. Consider a simple question: Can you get a meal without using a smartphone? The answer is, of course, yes. But the thought of enduring traffic jams, waiting in line or choosing a restaurant without online reviews feels unnecessarily troublesome. Have we become so dependent on instant

COMMENT By Emeritus Prof Dr Ng Kwan Hoong Is convenience eroding our human touch?

A conversation over coffee can foster a level of connection that a string of emojis never will. – ADIB RAWI YAHYA/THESUN

vulnerabilities it entails. Is it ironic or simply the inevitable byproduct of a world where convenience has supplanted human engagement? Reclaiming depth in our lives does not require abandoning convenience altogether but it does call for conscious recalibration. Instead of defaulting to digital interactions, we can choose to engage in more meaningful ways. A handwritten letter carries an emotional weight that a text message cannot. A conversation over coffee can foster a level of connection that a string of emojis never will. Choosing to wait, to engage fully in a moment, to resist the urge for instant solutions – these are small yet significant ways to reclaim autonomy over our time, focus and deepen our relationships. Technology will continue to evolve, offering

ever more effortless solutions. However, true fulfilment does not come from taking the shortest path; it arises from the journey itself. The increasing impatience we witness today is not just shaping individual habits but also defining broader societal values. If we lose our capacity for patience, effort and deep engagement, what kind of world are we creating? Perhaps it is time to step back and ask: Are we controlling convenience or is it controlling us? DrNg Kwan Hoong is an emeritus professor of Biomedical Imaging at the Faculty of Medicine, Universiti Malaya. He is also a 2020 Merdeka Award recipient and a medical physicist by training. Comments: letters@thesundaily.com