Reported in The Star:

In the month of January 2006, a restructuring company, Malaysia Airlines (MAS) introduced a whistle –blower programme as part of a revamp under the stewardship of the managing director, Encik Idris Jala.

The objective is towards the keynote of encouraging transparency and accountability by reporting on any wrongdoings within the organization.

This action by MAS has sparked discussions in the Malaysian Corporate sector and was perceived as a pioneering effort.

It is interestingly to note that in fact earlier in the 2004 annual reports, a few listed companies have talked about whistleblower policies which include Government linked companies like Telekom Malaysia Bhd, Chemical Co of Malaysia Bhd and KPJ Healthcare Bhd. Two other listed companies, Shell Refining Co (Federation of Malaya) Bhd and TH Group Bhd, touched on their approaches to whistle-blowing in their 2003 annual reports.

Developments that is noteworthy:

• In September 2003, the Securities Industry Act was amended to incorporate whistle-blowing provisions;
• Whistle-blowing has become an integral part of change management;
• The shift in mood is most evident in statements by Prime Minister Datuk Seri Abdullah Ahmad Badawi, who has frequently asked for the public to help in the fight against graft. Whistle blowing is especially a good tool to counter corruption. There cannot be punitive actions if wrongdoings are in the first place not being reported and properly investigated;
• Investigations by the Securities Commission (SC) into two proposed initial public offerings –Hospitech Resources Bhd and GP Ocean Food Bhd. Both cases are believed to have been the result of tip-offs;
• The need for listed companies to formulate solid whistleblower policies and to communicate these effectively to employees. The stigma attached to whistle-blowing has to be wiped out and would-be whistleblowers must be convinced that they will be protected and
• GLCs must lead the way in this, because these companies are essentially managing national assets and thus whistle-blowing in respect of these companies is a matter of national interest.

By implementing a Statement of Policy on whistle-blowing will definitely helps in the long run. Maybe, if the policy and procedure for whistle-blowing is implemented well and employees feel that they are well protected, perhaps this will lead to early exposure of white-collars crimes and or acts as deterrent for would be corruption as the “crooks” might feel that they have been “watched”.