KUALA LUMPUR: A comprehensive multidisciplinary national strategy and action plan against economic crime are critical to enable post Covid-19 economic recovery and to enhance Malaysia's appeal in attracting foreign direct investments (FDI), said Sarawak former state police chief Datuk Dr Yusoff Nook.
Dr Yusoff's comments came amidst recent revelations in relation to the 1MDB financial scandal as well as reports on rampant smuggling activities involving meats, cigarettes and daily essentials.
"Financial scandals, out-of-control black market and endemic corruption are economic crimes that harm every segment of our society.
"The government continues to lose billions of ringgit every year to these crimes while the very fabric of our society is threatened by criminal elements and a kleptocracy culture," Dr Yusoff said in a statement.
He said in addition to revenue losses, economic crime also deters foreign investors from investing in Malaysia.
Concerns relating to intellectual property, personnel security and market viability in an environment where the rule of law is perceived to be non-existent will cause potential investors to think twice before moving their facilities or business operations into our country, he added.
"If we take current and potential losses in totality, I predict that the cost of economic crime could reach the trillion ringgit mark in the next ten years if it is not contained," Dr Yusoff said.
According to Dr Yusoff, now is the ideal time to form a national strategy and action plan against economic crime.
"With the Covid-19 vaccine roll-out and the end of the Movement Control Order (MCO) in key cities, we as a country must now focus whole-heartedly on economic recovery.
"We cannot afford economic crime to derail our efforts to turnaround lives and businesses hurt by the pandemic.
"This national strategy and action plan against economic crime must be all-encompassing and developed with the input and recommendations from the relevant enforcement branches, public agencies, as well as the private sector.
"This initiative must also be spearheaded and supported by the highest levels in the government," he added.
Dr Yusoff said the government's recent move to curtail illegal cigarettes smuggling in Budget 2021 by strengthening the multi-agency task force (MATF) with the inclusion of the Malaysian Anti-Corruption Commission and the National Financial Crime Centre is a good example of multidisciplinary approach to combat economic crime.
"Illegal cigarettes smuggling is a major economic crime that cost RM5 billion in uncollected tax revenue each year.
"This high level of illegal cigarettes has been going on since 2016 and previous governments have tried to solve this endemic, but it still remained unsolved.
"I look forward to seeing more tangible plans and action by the MATF in tackling this problem as we are now at the tail end of the 1st quarter of 2021," Dr Yusoff stated.
He said the MATF can and must do more to play a role in tackling economic crime.
In addition, a cross-agency taskforce like MATF can also contribute to the national strategy and action plan against economic crime by recommending reforms at the policy level that will have far-reaching consequences.
"For example, the MATF can suggest policies that can bridge the wide cost difference between illegal and legal cigarettes, which at the end of the day, is the very reason that entices smugglers to commit this economic crime.
"The MATF can also recommend stricter penalties and perhaps also suggest a reward system for law enforcement officers that may improve effectiveness and efficiencies," he said.