Malaysia is in third place for cumulative illicit financial outflows between 2001 and 2010. What a colossal shame.
According to a Global Financial Inegrity report in December 2012, the top 10 countries with the highest measured cumulative illicit financial outflows between 2001 and 2010 were:
China: US$2.74 trillion
Mexico: US$476 billion
Malaysia: US$285 billon
Saudi Arabia: US$210 billion
Russia: US$152 billion
Philippines: US$138 billion
Nigeria: US$129 billion
India: US$123 billion
Indonesia: US$109 billion
United Arab Emirates: US$107 billion
From the report:
Asia still remains the primary driver of illicit flows from developing countries led by China. In fact, five of the ten countries with the highest illicit outflows are in Asia (China, Malaysia, the Philippines, India, and Indonesia). The Western Hemisphere follows at 15.6 percent of total outflows while the MENA region contributed 9.9 percent of total outflows. In inflation-adjusted terms, outflows from MENA grew the fastest at 26.3 percent followed by Africa (23.8 percent), Asia (7.8 percent), developing Europe (3.6 percent), and Western Hemisphere (2.7 percent). The rapid growth in illicit outflows from the MENA region can be traced to the increase in crude oil prices.
According to our estimates, trade misinvoicing is the preferred method of transferring illicit capital from all regions except the MENA region, where it accounted for just 37 percent of total outflows over the decade ending 2010. Large current account surpluses are the main drivers of illicit outflows from the balance of payments of countries in that region.
Will the Prime Minister/Minister of Finance and Bank Negara shed some light on these outflows?