KUALA LUMPUR, Sept 30 — Prime Minister Datuk Seri Anwar Ibrahim has reiterated his government’s unwavering commitment to tackling corruption, stating that it remains a key obstacle to boosting foreign investments in Malaysia.

As he approaches his second year in office, Anwar told CNBC that eradicating corruption and improving governance are paramount for the nation’s economic progress.

"We need to save the country. The primary issue is poor governance coupled with systemic corruption,” he reportedly said in the interview.

CNBC news report further stated that Anwar stressed that both local and foreign investors seek stability and transparency, and these are essential to building trust.

"Without that trust and confidence, major investments won’t come. Unless they involve corrupt arrangements — which must be stopped,” he said, adding that some corrupt practices have already been halted.

"But the mission is ongoing, and it has to be relentless.”

Malaysia saw a significant drop in foreign direct investment (FDI) inflows, with 2023 bringing in RM40.4 billion, a decrease from the RM48.1 billion recorded in 2021. Government data further revealed that corruption cost the nation RM277 billion in lost economic output between 2018 and 2023.

When questioned about the aggressive pace of his administration’s anti-corruption efforts, Anwar replied, "If it were up to me, I’d go after them without mercy.” However, he noted the need to engage his coalition in discussions on finding the best solutions.

Anwar did not specify any ongoing corruption cases, nor did he name any former leaders.

Nevertheless, high-profile cases such as the 1Malaysia Development Berhad (1MDB) scandal — which saw former Prime Minister Datuk Seri Najib Razak convicted of embezzling millions — continue to cast a shadow on Malaysia’s governance.

In May, the government launched its National Anti-Corruption Strategy, aiming to position Malaysia among the top 25 countries on Transparency International’s Corruption Perception Index within the next decade. The country is currently ranked 57th.

Malaysia’s economy expanded by 3.7 per cent in 2023, a sharp decline from the 8.7 per cent growth it experienced the previous year. The government has also been focused on attracting more FDI, with two major economic initiatives on the horizon.

Agreements for the Johor-Singapore Special Economic Zone are expected to be finalised by year’s end, aiming to strengthen cross-border trade and investments. Meanwhile, the Forest City Special Financial Zone in Iskandar Puteri is set to become a key business district, with plans to offer zero per cent tax rates on family offices to attract high-skilled talent.