The Development of an Anti-Corruption and Ethical Governance Policy for Malaysian Small Enterprise

Teng, Sin You (2026) The Development of an Anti-Corruption and Ethical Governance Policy for Malaysian Small Enterprise. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

Text 19 Teng Sin You.pdf Restricted to Registered users only Download (893kB)

Abstract

This study examines the corporate governance practices of Pink Ladies Souvenirs Sdn. Bhd., a Malaysian small enterprise, with a particular focus on anti-corruption and ethical governance. The research identifies key governance weaknesses within the Company, including reliance on informal practices, absence of structured procedures, and limited internal control mechanisms. A qualitative research approach was adopted, involving semi-structured interviews with the Director and management staff to assess existing practices and identify governance gaps. Based on the findings, a comprehensive Anti-Corruption and Ethical Governance Policy were developed, aligned with relevant Malaysian legal and governance frameworks, including the Companies Act 2016, Malaysian Code on Corporate Governance (MCCG) 2021, and the Malaysian Anti-Corruption Commission (MACC) Act 2009. The proposed policy introduces structured governance mechanisms, ethical standards, and control measures addressing key risk areas such as procurement, cash handling, and interactions with external parties. The study further analyses the effectiveness, practicality, and limitations of the policy within the SME context and provides recommendations to enhance implementation through improved monitoring, training, documentation, and communication. The findings demonstrate that the adoption of structured governance policies can significantly strengthen accountability, reduce corruption risks, and improve operational consistency in SMEs. Overall, this study contributes to both practical and academic understanding by offering a tailored governance framework that supports ethical conduct, regulatory compliance, and sustainable business performance within small business environments.