Relationship between Good Governance and Integrity System: Empirical Study on the Public Sector of Malaysia

Abstract

This study is an attempt to measure the relationship between the current practice status of good governance and that of integrity in the public sector of Malaysia. This study collected primary data based on a set of questionnaire survey among heads of 109 departments and agencies under 24 federal ministries, including the Prime Minister Department in Malaysia. The data were analysed under descriptive statistics, ordinal regression and structural equation model. Furthermore, standard diagnostic tests were also conducted to check the reliability of the data and models. To improve the integrity system, the study suggests to focus on the practices of strategic alliance, strategic planning, audit and fraud control. Overall, the public sector in Malaysia must also focus significantly on the development of good governance system and a proper appraisal system to achieve an effective integrity system.

Keywords: Public Sector; Integrity; Good Governance; Structural Equation Model; Ordinal Regression; Malaysia