The crusade against corruption in Malaysia is not over yet, says the Prime Minister, as the country continues to attract investment.

• When investors see consistent, transparent processes and a stronger commitment to ending corruption, both domestic and foreign investors will gain more confidence.
• Corruption continues to be a major issue in Malaysia despite efforts to improve governance.
• Official data shows that the Southeast Asian nation suffered a loss of approximately 277 billion ringgit in economic output due to corruption from 2018 to 2023.

If Prime Minister Anwar Ibrahim wants to attract more foreign direct investments into Malaysia, he must overcome the challenge of eradicating corruption in the country.

Since being sworn in as prime minister two years ago, Anwar has remained committed to cracking down on the problem and has taken a no-nonsense approach in dealing with it, he stated.

The major problem, in my view, is poor governance and endemic corruption, which we must address to save the country, as he stated to CNBC's JP Ong.

When investors see consistency in transparent processes and a stronger commitment to ending corruption, both domestic and foreign investors will gain more confidence.

Nobody will invest in a big way without trust and confidence. However, those with corrupt arrangements will continue. But this must stop, and fortunately, it has.

"Despite continuing with our mission, I strongly suggested that, given the almost systemic nature of corruption, our crusade against it must be full force," he added.

'I would just go after them without mercy'

In 2023, Malaysia experienced a decline in foreign direct investment inflows to 40.4 billion ringgit ($9.7 billion) from a peak of 48.1 billion ringgit in 2021, while the country also suffered a loss of around 277 billion ringgit in economic output due to corruption from 2018 to 2023.

Anwar stated that if he were in charge, he would not show any mercy in combating corruption.

He stated that he needed to consult with his coalition to discuss the best solutions to the issue, and emphasized that if they did not act quickly and effectively, the nation would not be saved.

He stated that we have enough ground to propose that this mission will continue.

Despite Anwar not mentioning any specific cases of corruption or former leaders during the interview, instances of corruption continue to be reported when discussing governance in Malaysia. One of the most notorious cases is the 1Malaysia Development Berhad money laundering scandal, where Najib Razak was found guilty of embezzling millions of dollars.

The government unveiled its new national anti-corruption strategy in May, with the goal of improving Malaysia's ranking on the Transparency International's Corruption Perception Index to be among the top 25 countries within the next decade. Currently, Malaysia ranks 57 on the index.

Malaysia's economy grew 3.7% in 2023, a significant decrease from the 8.7% growth recorded in 2022. In the second quarter of 2024, GDP increased by 5.9%, up from the 4.2% increase seen in the first three months of the year.

Two economic zones are being developed as part of Malaysia's plan to boost foreign investments and improve its economic position.

The Johor-Singapore Special Economic Zone agreements are expected to be finalized by year's end, with the goal of increasing cross-border trade and investment activities.

Malaysia aims to boost business activity in Iskandar Puteri by attracting investments to its Forest City special financial zone, which now offers zero-percent tax rates on family offices, as announced last week.