KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) is urging the government not to backtrack on the implementation and enforcement of Section 17A of the Malaysian Anti-Corruption Commission (Amendment) Act 2018.
The Act, which is due to come into force on June 1, provides for strict corporate liability on commercial organisations for failure to prevent corruption. It was passed in Parliament on April 5, 2018 and gazetted on May 5, 2018.
FMM president Tan Sri Soh Thian Lai said there have been calls for the implementation date to be pushed back by a year to June 1, 2021 in view of the Covid-19 pandemic which has affected businesses.
“However, it is even more crucial at this point when companies are facing challenging business conditions not to compromise on corruption and to ensure that corrupt practices are kept at bay and effectively addressed both at the organisation and throughout the entire supply chain,” he said.
In a statement here, he said FMM acknowledged that the pandemic might have delayed companies’ initiatives to put in place a robust compliance programme to ensure compliance with the law.
Therefore, FMM suggested that the deferment should be for three months to a maximum of six months, with a definite date stated and gazetted immediately, to ensure companies take the new deadline seriously.
This will allow companies, especially small and medium enterprises (SMEs), to get all their procedures and systems into order.
Soh said as the driver of economic growth and development, the private sector has an invaluable and evolving role in rooting out corruption.
“It is imperative for businesses to establish robust integrity systems in their operations to minimise any risk of corruption,” he said. – Bernama