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ASSET DECLARATION SYSTEM BRIEF FAQ
1. What is an asset declaration system and why is it necessary?
 An asset declaration system is a powerful tool to help combat corruption in the
public sector.
 Those in government have immediate control over public assets and funds, and
they manage the award of government contracts. Asset declarations curb abuses
of power by preventing conflicts of interest or detecting misappropriation of
funds through illicit enrichment.
 Government can also build trust by having the opportunity to clarify the origins
of officials’ personal wealth.
2. Does Malaysia have an asset declaration system and how effective is it?
 Malaysia currently has an asset declaration system:
o The civil service is required to declare their assets via service circulars
and regulations. But their declared assets can only be accessed by the
government.
o Parliament declares assets through a Code of Ethics
o Members of the cabinet confidentially declare their assets to the Prime
Minister annually.
 The system is not comprehensive, lacks transparency, and does not have a
strong verification mechanism to ascertain the accuracy of assets declared.
3. What are the rules for an effective asset declaration system?
Countries have different practices in place for asset declaration systems. However,
studies have found that successful asset declaration systems have these features:
 Dual objectives of detecting conflict of interests and illicit enrichment
 A clear legal framework
 Requires officials in all branches of government to declare their various assets
on an annual basis
 An effective and independent monitoring and verification mechanism
 An effective and enforced sanctions mechanism for non-compliance
 Public access to assets declared
4. How have other countries benefited from asset declaration systems?
 In Slovenia, both the Prime Minister and Opposition leader were demanded to
resign after they hid high-value assets and did not declare conflicts of interest in
business deals. Investigations were also prompted as a result.
 Public accessibility to asset declarations has also resulted in an impetus for
reform. In 2008 for example, Louisiana’s Governor, Bobby Jindal launched the
ethics reform package after the Centre for Public Integrity gave the state of
Louisiana a low ranking for asset declaration transparency, which led to
improvements.
 Hong Kong and the United States of America also have comprehensive and
transparent asset declaration systems which have aided in investigations and
anti-corruption efforts.
5. How can Malaysia’s asset declaration system be improved?
 Make it a legal requirement for Ministers and Members of Parliament including
Senators to declare their assets to a Special Committee in Parliament.
ASSET DECLARATION SYSTEM BRIEF FAQ
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Give a mandate to the Malaysian Anti-Corruption Commission (MACC) to verify
and monitor asset declarations as well as cross check the information with
other agencies like the Inland Revenue Board and Unit Perisikan Kewangan at
Bank Negara.
Strengthen the current practice for civil servants by handing over the
verification responsibility from the department to the MACC.
Allow the information on asset declaration to be available upon public request.
Studies have shown how public access lowers levels of corruption and
perceived corruption in a country. The information should be available by
public request with the option to make it automatically available. However, if
the information is only available by public request, Parliament should seriously
consider adopting a Freedom of Information Act.