1.0 Introduction

Recently the terms "governance" and "good governance" are

being increasingly used in development literature. Bad

governance is being increasingly regarded as one of the root

causes of all evil within our societies. Simply put

“governance" means: the process of decision-making and the

process by which decisions are implemented (or not

implemented).

Since governance is the process of decision-making and

the process by which decisions are implemented, an analysis of

governance focuses on the formal and informal actors involved

in decision-making and implementing the decisions made and the

formal and informal structures that have been set in place to

arrive at and implement the decision. Government is one of the

actors in governance. Other actors involved in governance vary

depending on the level of government that is under discussion.

Governance is consistent with the rule of law and the

spirit of the law; does not result from nor can it be

justified by illegal or legally-suspect actions. The absence

of good governance can undermine the legitimacy of public

institutions and disrupt policy goals.

1

In order to achieve the desirable concerns of management

and governance, administrative reform policies have emphasized

not only reforms of the civil service system, public finance,

and state-owned enterprises, but also restructuring in market

liberalization, privatization, deregulation, and

decentralization. Policy measures need to emphasize

professional efficiency and ethical norms and values so as to

reduce bureaucratic corruption, social inequalities, and

political influence in administration otherwise called for and

from using the state to distort private exchanges (Norlida et

al., 2011).

Based on recent experiences, it is crucial to

conceptualize the administrative reform at work in both

driving and restraining change and in turn promote efficient

governance and ethical practices within the state bureaucracy.

The implication is that more often than not, good governance

could often have positive effects on the economy and

development.

1.1 What Is Good Governance?

2

Good Governance is among other things, participatory,

transparent and accountable. It is also effective and

equitable and it promotes the Rule of Law. Good governance

ensures that political, social and economic priorities are

based on broad consensus in society and that the voice of the

poorest and the most vulnerable are heard in decision making

over the allocation of development processes.

“Good governance” is a normative conception of the values

according to which the act of governance is realized, and the

method by which groups of social actors interact in a certain

social context. The lack of a generally accepted definition of

the concept is compensated by the identification of principles

that strengthen good governance in any society. The most often

enlisted principles include: participation, rule of law,

transparency of decision- making or openness, accountability,

predictability or coherence, and effectiveness. The

international donor community generally shares the view that

these principles stand at the foundation of sustainable

development.

The first characteristic refers to equal participation by

all members of society as the key element of good governance,

3

with everyone having a role in the process of decision-making.

Secondly, good governance implies the rule of law maintained

through the impartiality and effectiveness of the legal

system. Rule of law also means the protection of human rights

(particularly those of minorities), independent judiciary and

impartial and incorruptible law enforcement agencies. The rule

of law involves a variety of conditions, being strongly

connected to good administration of justice, good legal

framework, verified dispute mechanisms, equal access to

justice, and the independence of judiciary workers (lawyers,

judges).

Good governance is also based on the transparency of the

decision-making process, which ensures that information is

freely available and accessible to those involved or affected

by the decisions taken. Transparency therefore means free

access to information. Last, but not least, accountability and

responsibilities (of the institutions, just as much as of the

civil society) are key requirements of good governance, with

all of the participants in the political and economic

processes being accountable for their decisions to each other.

2.0 Challenges to Good Governance

4

2.1 Corruption

In every society, a large percentage of national expenditure

is swallowed up by corrupt practices. In Malaysia, combating

corruption, declaration of the assets of all public and

political officials, more openness about political donations

and a semblance of openness and competitiveness in the tender

process are urgent tasks.

Malaysia has been ranked as one of the most corrupt

nations and listed as country which is most like to take

shortcuts to meet targets when economics times are tough,

according to a recent survey by Ernst & Young, signalling that

the government’s Performance Management and Delivery Unit

(Pemandu) has failed in its role to transform the economy

(Rakyat Times, October, 2, 2014)

 According to an international study by Transparency Inte

rnational UK‟s Defence and Security Programme (TI-DSP) had

stated that Malaysia is a “very high” risk of corruption in

the procurement of defence equipment. It is because the amount

of money involved in contract is enormous.

5

Another latest report, Asia-Pacific Fraud Survey Report

Series 2013 had stated that Malaysia has the highest levels of

bribery and corruption anywhere in the world. Our survey finds

that bribery and corrupt practices are prevalent in Malaysia.

Thirty-nine per cent of respondents say that bribery or

corrupt practices happen widely in Malaysia, which is nearly

double the Asia-Pacific average of 21%. In addition, 29% of

respondents say that bribery or corrupt practices have

increased due to tough economic times and increased

competition, which is the third highest amongst the countries

surveyed

Prime Minister Datuk Seri Najib Razak has staked his

premiership on six National Key Result Areas (NKRA), of which

“Reducing Corruption” was one of the most important. Najib and

his team have taken great pains to point out to Malaysia and

foreigners the efforts and successes in achieving the key

performance indicators (KPIs) of the NKRA. In 2011, “Pemandu”

boasted that the initiatives taken have shown tremendous

results in eradicating corruption. The government also pointed

out that “the effectiveness of the actions taken is being

slowly felt and acknowledged by the general public”- September

6

27, 2013. In July, (2013), civil servants were also listed as

the third-most corrupt, according to local respondents to

global anti-corruption watchdog Transparency International's

Global Corruption Barometer survey.

To prevent corruption the government was also set up the

Public Complaints Bureau (PCB) as one of the mechanisms

through which members of the public could lodge complaints on

malpractices and abuse of power in the public service. The

Auditor General's Department has been set up to audit Public

Accounts and to ensure that public expenditure, revenue and

assets are properly managed and accounted for according to the

law and established procedures. The Malaysian Administrative,

Modernisation and Management Planning Unit (MAMPU) have been

established for the purpose of initiating changes in

government administration to ensure the creation of a modern,

competent and effective public service.( Abdullah Ahmad

Badawi, Pelan Integriti Negara, 2004)

2.2 Political Intervene

It is important for civil servants to have neutral

attitude when it comes to political believe. For example, the

7

results of the 2013 general election has resulted in four

opposition controlled states, namely Selangor, Penang, Kedah

and Kelantan . Thus the civil servants in the four states

concerned should act wisely in addressing an issue involving

the federal and state governments. In this case it was a big

challenge to apply rational thinking among employees as an

action that seems a double standard would create a negative

perception of both public and private governance service

image. Public servant should be neutral from the politic when

they are on job position. They can’t choose to divide by

political view when they are doing their job, they should fair

to all citizens who need the public service from them. For

example, Kelantan are state that under Parti Islam Malaysia

(PAS) but the federal government are from Barisan Nasional

(BN), if the state of Kelantan need some approval some more

budget from federal are too difficult. As a government or

public servant, they must serve our nation first and put their

ideology besides when they are on job.

Every servant should not show any tendency of political

affiliation in the performance of daily tasks. Each servant

must have a clear focus on the job, which is to serve the

8

people and not bow to political pressure. They have to act

rationally and not to be obsessive political belief and make

sure their task have to be implemented in a fair and equitable

manner (Harold Crouch, 1996).

2.3 Workplace Deviance

Ethics is a set of moral principles or values that defines

right and wrong for a person or group. Ethical behaviour, thus

advocates accepted principles of right and wrong. Workplace

deviance refers to unethical behaviour that violates

organizational norms concerning right and wrong. If a

management was unaware of workplace deviance, the organization

could not be held responsible for an employee’s unethical

acts. Experts estimate that workplace deviance alone may cost

organization as much as billions a year. There are four types

of workplace deviance are production deviance, property

deviance, political deviance and personal aggression. While

production and property deviance harm organizations, political

deviance and personal aggression are unethical behaviours that

9

hurt particular people within the organizations. Production

deviance refers to unethical workplace conduct that hurts the

quality and quantity of work. For example are leaving work

early, taking excessively long leaves, working slowly or

calling in sick to avoid work.

Property deviance refers to unethical workplace conduct

that is aimed at organization property. For example, the act

of sabotage or vandalism, stealing from the workplace,

damaging organization equipment, embezzling organization funds

or overcharging customers for services and then pocketing the

difference. Political deviance refers to unethical workplace

conduct that causes harm to others. For example, using one’s

influence to harm others in an organization, making decisions

based on favouritism rather than performance, spreading

rumours or falsely blaming others for mistakes they did not

commit. Personal aggression refers to unethical workplace

conduct, such as being hostile or aggressive towards others.

It also includes behaviour such as sexual harassment, verbal

abuse and making threats.

10

3.0 Conclusion

It is clearly that governance means much more than

government.. Good governance considers accountability,

transparency, openness, predictability, participation,

political legitimacy, freedom of association and participation

in the process of governance, an established legal framework

based on the rule of law and the independence of judiciary to

protect human rights and freedom of information and

expression. Good governance will avoid any corruption and

mismanagement. Obviously, it shows that private sector is the

main engine for economic growth and development while the

public sector playing as a facilitative and supportive role in

the process.

Malaysia is a developing country that needs to focus on

ethics and guideline in organisation to minimize any

wrongdoing. There are various unethical issues and

malpractices involving both the public and private sector in

Malaysia. One major problems affecting public and private good

governance is corruption. Generally the private sector is seen

11

as the “giver” while public officials the “receiver”. Good

governance in public and private sector is important to avoid

abuse of power and position, wastage of resources, poor

delivery system and erosion of competitiveness. The public’s

needs are rapidly changing as society’s become more diverse,

fragmented and complex. They expect the public service to

deliver more of these services accurately, better, faster but

cost-effective. The ability to deliver more choice services,

more transparency and more accountability is what is needed to

re-establish public trust in the public service. All of this

must be grounded on good governance. It must be recognized

that to achieve the ultimate state of good governance, all

sectors within the country must “live and abide” by its

principles. It is clear that good governance in all sectors is

a critical prerequisite for any country to achieve social and

economic development.

REFERENCES

Building a more ethical business environment, Asia-Pacific Fraud Survey 2013.

Corporate Governance In Malaysia For Vision 2020:Issues And Expectations.

  Retrieved November 17, 2014from http://companylaw.tripod.com/governance

12

Cogito Ergo Sum. (2014, October 2). Malaysia one of the mostcorrupt nations - Ernst

& Young survey. Rakyattimes. Retrieved November 17, 2014,fromhttp://www.rakyattimes.com/~wolf/index.php/news/1336-malaysia-one-of-the-most-corrupt-nations-ernst-young-survey

Ethics in Malaysian Corporate Governance Practices.

Retrieved November 17, 2014 fromhttp://search.taylors.edu.my/journalonline

Govt Practised 'Wasatiyyah' in Handling Intrusion. (n.d.) Retrieved November18, 2014 from

http://www.nst.com.my/latest/don-govt-practised-wasatiyyah-in-handling-intrusion

Good governance – the concept. Retrieved November 8, 2014, from

http://www.edrc.ro/docs/docs/11-17.pdf

Harold Crouch, Government and Society in Malaysia (Ithaca: CornellUniversity Press,

1996).

Malaysia Recognises Foreign Workers' Contribution To Country's Development.

(n.d.) Retrieved November 18,2014 fromhttp://www.nst.com.my/latest/malaysia- recognises-foreign-workers- contribution-to-country-s-development

Norlida Kamaluddin, Za’faran Hassan, Rabiah Abdul Wahab,Rohaya Mohd Hussein

(2011).Principles of Management. Oxford Fajar Sdn. Bhd.

NKRA : Fighting Corruption. Retrieved November 19, 2014

from http://www.pmo.gov.

Transparency International Global Corruption Barometer (GCB)Survey 2013 – Malaysia’s 2013 GCB results.

13

Attachment

14

Source: Transparency International Global Corruption Barometer (GCB) Survey 2013

– Malaysia’s 2013 GCB results.

15

Source: Transparency International Global Corruption Barometer (GCB) Survey 2013

– Malaysia’s 2013 GCB results.

16