Are you a small business owner in Asia Pacific? Feeling pressured to pay bribes to secure deals? You’re not alone. A new report by the Association of Chartered Certified Accountants (ACCA) reveals a shocking truth: bribery is a major hurdle for SMEs in the region. The ACCA reveals 63% of SMEs in the region believe refusing bribes could mean losing business deals.
Jason Piper, ACCA’s Head of Tax and Business Law, explained, “Many very small businesses lack the bargaining power to refuse when faced with demands for small bribes. Entrepreneurs must choose between paying the bribe or losing the business – a decision that often leaves them with no real choice, especially for those trying to support a family.”
But there’s a glimmer of hope. The report, called “Bribery and Corruption: The Hidden Social Evil on Your Doorstep,” doesn’t merely expose the problem, it also shines a light on the long-term benefits of resisting corruption.
68% of people surveyed believe a strong anti-bribery policy boosts customer trust. That trust translates to a competitive edge, with a whopping 83% believing such policies can help win contracts with big companies and government agencies.
The ACCA report also conducts a critical evaluation of the effectiveness of existing anti-corruption laws and policies across various countries in the region. While acknowledging the progress made, it emphasizes the need for further collaboration to unify efforts across borders.
Andrew Lim, Portfolio Head, ACCA Maritime Southeast Asia said, “Bribery and corruption continue to pose significant challenges for SMEs in Malaysia and the Asia Pacific region. It is crucial for businesses to uphold their integrity while thriving in a competitive market.
Recently, The Malaysian Anti-Corruption Commission (MACC) revealed that the nation lost a staggering RM277 billion due to corrupt practices over the past five years (2018-2023). This translates to an average loss of RM55 billion per year, a figure that could have significantly benefited the Malaysian public. The massive RM277 billion lost to corruption is equivalent to 28 years of Sumbangan Tunai Rahmah, or nearly matching the combined GDPs of Johor and Penang.
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