Malaysia's Political–Business Complex: Public Misgovernance and Grand Corruption

Abstract This article argues that there is an urgent need to re-think the concept of corruption by unveiling covert—and deeply disturbing—trends in public governance. In Malaysia, the structure of the state features extensive state–business relations, conducted through a “political–GLC complex,” one deeply shrouded in secrecy though much economic wealth is concentrated in government-linked companies (GLCs). This political–business system, controlled ultimately by the executive arm of the government, reflects a common trend in Asia where governing elites control GLCs—or state-owned enterprises. This study offers insights into public misgovernance through the inner workings of Malaysia's vast byzantine-like GLC ecosystem, comprising many layers of public enterprises and private firms, entwined through complex ownership and control ties. This GLC ecosystem, though created to rectify socioeconomic injustices, also functions as a core tool for the conduct of corruption, including the abuse of power to serve vested political interests.