Investigating Fraud in Malaysian Transportation Projects: Insights from Game Theory

Fraud in Malaysia's transport sector has been a persistent issue, significantly impacting the efficiency and integrity of infrastructure development. This sector, encompassing road, rail, and maritime transport, is vital for the country's economic growth and connectivity. However, the prevalence of fraudulent activities has raised serious concerns about the effective use of public funds and the quality of transport projects. Game theory provides a robust framework for analysing and addressing fraud in various contexts. By modelling the strategic interactions between different players, game theory helps in understanding the incentives and predicting the outcomes of fraudulent behaviour. This understanding can inform the design of more effective fraud detection and prevention strategies. As demonstrated in various case studies, the application of game theory in fraud investigations can lead to improved risk assessments, audit planning, and the design of anti-fraud mechanisms. By leveraging game theory, investigators can enhance the effectiveness of their efforts to combat fraud and promote integrity in organizations. The Malaysian Anti-Corruption Commission (SPRM) has played a pivotal role in combating corruption within the transport sector, highlighting the need for stringent measures and continuous vigilance. Overall, game theory's application in fraud detection and prevention offers valuable insights and strategies to mitigate corruption and promote ethical governance in Malaysia's transport sector.