THE Corruption Perceptions Index (CPI) is widely used as a key reference to assess a country’s integrity and the quality of its governance.
CPI rankings not only shape public perception but also influence foreign investor confidence, assessments by international financial institutions, and a nation’s reputation on the global stage. In today’s interconnected world, the CPI has effectively become part of the “international language” used to evaluate government credibility.
The importance of the CPI is further emphasised at the highest levels of national leadership. Prime Minister Datuk Seri Anwar Ibrahim has articulated a vision for Malaysia to rank among the top 25 countries globally in the CPI by 2033.
This target reflects an understanding that the CPI is not merely a measure of perception but a global benchmark for reputation, closely linked to economic competitiveness, investor confidence, and the international community’s trust in governance. It also signals a clear political commitment that integrity and anti-corruption efforts are central to national development.
However, to understand the CPI objectively, the public must recognise a fundamental reality: the CPI does not measure the actual number of corruption cases or prosecutions. Instead, it measures perceptions of public-sector corruption, based on a composite of nine independent sources, including assessments by experts, risk analysts, and the international business community.
Beyond corruption, the CPI also captures perceptions related to democracy, media freedom, bureaucracy, national competitiveness, judicial independence, abuse of power, and transparency in public procurement.
As such, the CPI reflects how multiple interrelated elements associated with corruption and abuse of power are perceived, rather than providing empirical evidence on the ground.
This is where the gap between perception and reality often arises. In many cases, robust enforcement actions, including high-profile investigations, prosecutions of influential individuals, and the exposure of major cases, increase media coverage and public awareness.
In the short term, however, this can create the perception that corruption is worsening, when in fact more cases are being uncovered and addressed. This paradox is commonly observed in countries that are strengthening accountability systems.
Another factor influencing CPI scores is the international information ecosystem and prevailing global narratives. Reports by international media, analyses by rating agencies, statements from think tanks, and discussions in global forums shape perceptions.
Even when countries consistently implement legal reforms, successful prosecutions, and asset recovery, without fact-based, strategic communication, these achievements may not translate into improved CPI perceptions.
What the CPI does not measure
To assess the CPI accurately, it is important to note what the index does not capture:
Statistical data on corruption: The number of complaints, investigations, arrests, prosecutions, or convictions is not part of the CPI methodology. Countries actively prosecuting corruption may not see immediate improvements in CPI scores, even if enforcement is effective.
Tax fraud: Tax evasion and fraud, which can result in substantial revenue losses and affect fiscal fairness, are not categorised as public-sector corruption under the CPI.
Illicit financial flows and money laundering: Cross-border criminal financial activity, including tax evasion and unlawful fund transfers, is not a central component of CPI assessment. A country’s ability to detect, freeze, and confiscate proceeds of crime is important but not directly measured by the CPI.
Private-sector corruption: Corruption or abuse of power within the private sector, including market manipulation, falls outside the CPI’s primary scope, despite its economic and social implications.
Performance reality and international recognition
Despite these limitations, Malaysia’s real-world performance in combating financial crime has gained international recognition. A recent evaluation by the Financial Action Task Force-Asia Pacific Group (FATF-APG) commended Malaysia for progress in its anti-money laundering regime and asset recovery efforts.
Between 2019 and 2025, Malaysia successfully recovered assets worth about RM37.63 billion (€8.11 billion), largely linked to the 1Malaysia Development Bhd (1MDB) case. This achievement led to Malaysia’s upgrade to the highest “regular follow-up” tier, signalling international confidence in the country’s ability to combat financial crime effectively and sustainably.
CPI as an indicator, not the full picture
These considerations demonstrate that the CPI is an important indicator, but not a comprehensive reflection of corruption and integrity in a country. The goal of reaching a top 25 global ranking by 2033 should be seen as a catalyst for reform, rather than simply improving perceptions.
The nation’s true priority is to build a governance system that is transparent, accountable, effective, and fair. As good governance is embedded and strengthened consistently, global perceptions will evolve over time, even if not immediately.
In conclusion, bridging the gap between perception and reality requires firm action, continuous reform, and credible, fact-based communication. In an increasingly interconnected world, integrity must not only be practised, but also understood.
The CPI ultimately reminds us that global trust is built not through numbers alone, but through evidence, consistency, and long-term commitment.
The writer is the Malaysian Anti-Corruption Commission Strategic Communication Division director.
© New Straits Times Press (M) Bhd
