06/07/2026

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Future-proofing Malaysia’s governance M ALAYSIA’S commitment to integrity and good governance is well established. Over the framework, introduced by the MACC, enables ministries and agencies to identify corruption vulnerabilities within their operations. with procedures or to investigate misconduct after warning signals have emerged. Audits remain essential for accountability and assurance. Examiners estimates that organisations worldwide lose around 5% of their annual revenue to fraud. Studies also show that schemes detected earlier result in substantially lower losses, highlighting a simple principle in governance. The sooner irregularities are identified, the easier it is to contain damage and restore accountability. approaches across several federal agencies. Malaysia’s governance framework already provides a strong foundation for further evolution. The National Anti-Corruption Plan, corruption risk management frameworks, integrity units, internal audit mechanisms and financial monitoring systems collectively demonstrate the country’s commitment to accountability and transparency. COMMENT by Dr Afriza Hani Mohd Sinon

However, audits are periodic, sample-based and retrospective by design. They confirm whether procedures were followed and whether financial records are accurate but they are not intended to continuously observe behavioural patterns within financial transactions as programmes unfold. Enforcement agencies similarly play a critical role in investigating wrongdoing once allegations, complaints or audit findings trigger formal inquiries. What remains underdeveloped in many public sector systems globally, including in Malaysia, is the systematic use of forensic financial analysis as a proactive monitoring capability embedded within agencies themselves. Forensic accounting complements traditional oversight by analysing financial behaviour over time. Rather than focusing solely on documentation and procedural compliance, it examines patterns across transactions, vendors and programmes to identify anomalies that may signal emerging risks. International evidence suggests that earlier detection significantly reduces financial losses. The Association of Certified Fraud

has a darker side. That is where illegal betting syndicates emerge, a familiar adversary for authorities. While football fans see the tournament as a celebration of the world’s most popular sport, betting companies and criminal networks see it as a golden opportunity to fill their pockets with money. For many people, placing a bet is harmless. Placing a bet on your favourite team with friends can appear to add enjoyment to watching a match. Yet, sports betting is more than just a pastime; it is one of the many forms of gambling. Psychologists explain that such activities trigger the brain’s dopamine reward system which creates feelings of pleasure, similar to other addictive substances. The combination of anticipation, excitement and uncertainty produces feelings of euphoria that encourage people to repeat the experience, even after suffering repeated losses. According to Dr Luke Clark, a professor in the Department of Psychology at University of British Columbia, it promotes an illusion of control – the belief that the gambler can exert skill over an outcome that is actually defined by chance. Betting companies capitalise on this response because it is the main reason people continue to place bets. These platforms are carefully Integrity units established across ministries and agencies promote ethical conduct and strengthen internal governance while internal audit units operating under Treasury regulations provide independent assurance that financial controls are functioning effectively. BNM further reinforces financial oversight through its Anti-Money Laundering and Counter Financing of Terrorism frameworks, which monitor suspicious financial activity within the banking system. Taken together, these mechanisms demonstrate that Malaysia does not lack systems, laws or institutions to safeguard integrity. The country has built a governance structure that combines prevention, compliance monitoring, audit assurance and enforcement. Yet despite these strengths, cases of financial misconduct continue to surface across public institutions. This does not indicate the absence of oversight but instead reflects a structural reality common to many public sector systems worldwide. Oversight mechanisms are often designed either to ensure compliance

SINCE the World Cup kicked off, reports of betting activities have been making near-daily headlines locally and globally. Recently, Malaysian police arrested 1,156 individuals for their alleged involvement in illegal football-related betting activities. Authorities seized RM25,684.65 in cash and uncovered betting transactions worth RM488,582.47 during a nationwide operation targeting illegal World Cup betting syndicates. The growing concern has been reflected globally. The crackdown is expected to reach unprecedented levels during the 2026 Fifa World Cup. According to investment bank Macquarie, global World Cup 2026 wagers are expected to exceed US$50 billion (RM203.55 billion), breaking Qatar’s record of US$35 billion in 2022. A spokesperson for Flutter Entertainment, the world’s largest online betting operator, said: “We are expecting the World Cup to be the biggest betting event of all time, given the extended format as well as the benefit of it being partly hosted in our key market, the US.” Every four years, millions of people gather to watch the World Cup. It is not just about football. The tournament has always been a global event that bridges nations and cultures together. Like everything else, the World Cup decades, the country has built a strong institutional architecture to safeguard public funds and uphold accountability across the public service. Institutions such as the National Audit Department examine billions of ringgit in public expenditure each year, reflecting the scale and importance of financial oversight in government. The stewardship of the Public Service Department in strengthening governance and discipline within the civil service, the investigative mandate of the Malaysian Anti Corruption Commission (MACC) and the regulatory oversight exercised by Bank Negara Malaysia (BNM) together form a strong backbone of Malaysia’s governance ecosystem. Beyond these institutions, Malaysia has introduced several policy frameworks and preventive mechanisms to strengthen integrity within public administration. The National Anti-Corruption Plan provides a national roadmap for integrity reforms while the Corruption Risk Management

When embedded as an ongoing governance capability, forensic accounting enables earlier detection while corrective action is still possible. This shortens the time between risk and response, allowing agencies to address vulnerabilities before financial losses accumulate or public confidence is affected. Importantly, such systems do not imply suspicion towards public servants. Instead, they protect the integrity of the many honest officers who serve with professionalism and dedication. Several governments have begun embedding proactive financial intelligence within public institutions. Australia requires agencies to maintain fraud control capabilities that detect risks early. Singapore maintains forensic and investigative capacity within ministries and statutory boards to identify anomalies before issues escalate. The United Kingdom deploys counter fraud analytics to monitor public spending patterns while Canada has adopted similar

The question, therefore, is not whether Malaysia has governance systems. It clearly does. The more important question is whether these systems are fully equipped to detect emerging financial risks at the speed and scale of modern public finance. Public finance and procurement have become increasingly complex in the modern economy. Strengthening proactive financial monitoring represents a natural evolution in public sector governance. By complementing existing integrity, audit and enforcement mechanisms with forensic financial analytics, Malaysia can enhance early detection, reinforce public confidence and ensure that trust in the public service remains a national asset worth protecting. Dr Afriza Hani Mohd Sinon is a senior research fellow at the

National Institute of Public Administration. Comments: letters@thesundaily.com

LETTERS letters@thesundaily.com

The dark side of World Cup: Betting on trouble

According to Macquarie, World Cup 2026 global wagers are expected to exceed US$50 billion, breaking Qatar’s record of US$35 billion in 2022. – PIC COURTESY OF ABRAR SALAHALDIN

Sports channels can take a more active role by producing dedicated segments that expose the real consequences of sports betting. For cases of severe gambling addiction, dedicated websites and hotlines are already available to provide assistance. For those who operate these criminal syndicates, strict legal penalties must be enforced, making them an example to anyone who seeks to exploit people’s vulnerabilities for financial gain. Authorities are reminding the public that behind every winning ticket are thousands of losing ones. So ask yourself before you place a bet: Is it really worth the risk? Abrar Salahaldin City University Malaysia

The consequences do not end there. Betting also serves as fuel for violence and other social problems. Studies found that crime increases by 30% to 70% during sporting events in countries where sports betting is “legal”, with assaults rising by as much as 93% following unexpected home team outcomes. Malaysia maintains strict laws against illegal gambling and betting activities. However, enforcement alone is unlikely to address the growing demand. Combatting these phenomena requires using the same tactics by which they spread. Public awareness campaigns could be broadcast during football match commercial breaks with the support of authorities and relevant agencies.

designed to keep users coming back, convinced that the next bet will finally be the winning one. While individual bettors may occasionally enjoy significant wins, the operators are the ones who consistently generate billions of dollars and reap enormous profits. The current economic and social climate has made betting an even greater concern. Financial pressures, with the rising cost of living affecting many households, the promise of quick money can appear tempting. Easy access to legal and illegal betting platforms and the involvement of international celebrities across social media have reinforced the perception that betting is simply another form of entertainment.