03/02/2026

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TUESDAY | FEB 3, 2026

Combatting public sector corruption R ECENT corruption investigations involving senior public officials have once again unsettled public confidence in Malaysia’s public institutions. COMMENT by Dr Noor Adwa Sulaiman

transactions, auditors can analyse entire populations of payments, contracts, payroll records and asset registers to identify anomalies that signal potential fraud risks. Data analytics allows auditors to detect red flags, such as split procurements to bypass approval thresholds, repeated awards to related vendors, abnormal price variations, unusual payment timings or mismatches between contract terms and actual deliveries. When combined with historical data, analytics can also help identify emerging risk patterns across ministries or agencies, enabling auditors to prioritise high-risk programmes before losses escalate. In this sense, analytics shifts auditing from a reactive to a preventive function. Artificial intelligence (AI) further strengthens this

While each case carries its own legal and factual complexities, the persistence of such scandals points to a deeper governance challenge. Fraud and corruption in the public sector are rarely the product of individual

misconduct alone; more often, they reflect weaknesses in oversight, accountability and risk management. Addressing these vulnerabilities requires not only ethical leadership but also stronger governance systems supported by modern, data-driven auditing. Good governance is fundamentally about stewardship of public resources. It rests on transparency in decision making, clear allocation of authority, effective internal controls and credible assurance mechanisms. Where these elements are robust, opportunities for fraud are constrained. However, where they are weak – particularly in high value and high-discretion areas such as procurement, defence spending and major infrastructure projects – corruption risks may escalate. Recent Malaysian cases

“Fraud and corruption in the public sector are rarely the product of individual misconduct alone; more often, they reflect weaknesses in oversight, accountability and risk management.

capability. Machine learning tools can learn from past fraud cases to improve risk scoring, flagging transactions or entities that deviate from expected behaviour. Network analysis can uncover hidden relationships between suppliers, officials and intermediaries that are difficult to detect through manual reviews. Continuous auditing systems powered by AI enable near real-time monitoring, reducing the time lag between irregular activity and corrective action which can be a critical factor in deterring fraud. Malaysia’s public audit

By aligning strong governance principles with risk-based auditing and responsible use of data analytics and AI, Malaysia can move beyond reactive responses to scandals and towards a more resilient, preventive integrity system. – AFPPIC

repeated observations. Finally, leadership commitment and a strong tone at the top remain indispensable in shaping an organisational culture that does not tolerate corruption. Ultimately, combatting fraud and corruption in Malaysia’s public sector is not merely a technical challenge but also a governance one. By aligning strong governance principles with risk-based auditing and responsible use of data analytics and AI, Malaysia can move beyond reactive responses to scandals and towards a more resilient, preventive integrity system. Such an approach may not eliminate corruption entirely but it can meaningfully raise the cost of wrongdoing and, in doing so, help restore public trust in institutions entrusted with the nation’s resources. DrNoor Adwa Sulaiman is an associate professor at the Department of Accounting, Faculty of Business and Economics, Universiti Malaya. Comments: letters@thesundaily.com

governance systems. When governance structures are robust, these tools enhance oversight and early detection. When governance is weak, they merely reveal and may even intensify existing deficiencies rather than correcting them. To be effective, digital audit tools must be embedded within sound institutional arrangements. Several policy directions, therefore, merit priority. First, audit planning should be explicitly risk-based, with sustained focus on high-discretion and high-value activities. Second, investments in analytics and AI must be matched by investments in auditor capability, professional judgement and ethical training. Third, data integration across procurement, finance, human resources and asset systems is essential to ensure reliable analytics. Fourth, audit findings must be accompanied by enforceable follow-up and consequence management, so that red flags lead to corrective action rather than

institutions have begun to move in this direction. The National Audit Department has publicly emphasised the adoption of technology-driven and data analytics-based auditing to improve audit efficiency, accuracy and impact, alongside faster reporting and stronger follow-up on audit findings. These efforts reflect an important recognition that modern public-sector risks require modern assurance tools, particularly when public funds are increasingly managed through digital platforms. Nevertheless, technology alone is not a cure-all solution. Research shows that data analytics and AI do not function as stand alone solutions; instead, they reflect and reinforce the underlying strength of

involving senior army officers illustrate how governance gaps, rather than the absence of rules, often create the conditions for abuse. Auditing is a cornerstone of this governance framework. Yet, the traditional emphasis on retrospective compliance checking is no longer sufficient in a public sector characterised by complex transactions, digital systems and large data volumes. International research consistently shows that audit quality improves when auditors adopt risk-based approaches supported by data analytics. Instead of sampling limited

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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