Exploring public procurement in Malaysia: how institutional arrangements manufacture fraudulent practices

This paper examines procurement fraud in the Malaysian public sector. The study demonstrates how the institutional arrangements in Malaysia manufacture fraudulent practices within government purchasing. Qualitative data were collected through a total of 31 semi-structured interviews. The thematic analysis approach has been used to analyse data. Drawing on state-business relations theory, the study shows a system in place involving state-business ties in Malaysia enables the abuse of procurement practices. Findings illustrate how public policy and development, state-business relations, and power relations in Malaysia manufacture fraud in public procurement. This paper provides evidence of collaboration in continued corruption and fraud within government purchasing through organised financial crime by Malaysia's ruling elites, politicians, and private capitalists, which is assisted by public officials and regulators. The paper concludes that any effort to control and reduce corruption and fraud in Malaysia or its embeddedness within institutional arrangements must involve effective enforcement to prosecute perpetrators.