The country needs better judges to counter low confidence in its legal system, said Megat Najmuddin Khas, president of the Federation of Public Listed Companies.

"Until we get better judges, give them better service conditions and at the same time try to better peoples' perceptions locally and internationally, we shall continue to have this problem of low foreign confidence in Malaysia," he said.

Najmuddin was responding to a recent survey on legal systems in Asia which ranked Malaysia a dismal eighth out of 12 economies studied.

"It's almost unbelievable that Malaysia ranked below Taiwan, South Korea, the Philippines and Thailand!" lamented Najmuddin, who is an advocate for good corporate governance and business practices.

The survey, by Hong Kong-based Political and Economic Risk Consultancy (Perc) which produces regular risk reports on the business environment in the region, gave the Malaysian legal system a score of 7.43 out of 10 (10 is the worst possible score and zero the best). ("[#1]Furore signifies 'a major crisis of confidence' in the judiciary[/#]", June 13)

Perc Survey
1 Singapore
2.57
2 Japan
3.00
3 Hongkong
3.76
4 Taiwan
6.00
5 The Philippines
6.50
6 Thailand
6.67
7 South Korea
6.83
8 Malaysia
7.43
9 India
8.40
10 Vietnam
9.00
11 China
9.33
12 Indonesia
9.38


When asked what could be attributed to the low foreign confidence as implied by the survey's findings, he responded that Malaysia has been very poor in its efforts in handling foreign perceptions about itself and its institutions.

"It doesn't help when we have judges who are less than competent sitting on the bench. The problem has been accentuated by the shortcomings of the Attorney-General's Chambers," he added.

According to Najmuddin, the implications of the survey will be adverse, as it will negatively impact the future of foreign investments in Malaysia.

Yet he also believes that the local business confidence will be unaffected, since Malaysia has never been a litigation-conscious country.

"Most of our business problems are solved amicably between the parties without resorting to the courts," he said.

"However, compared to 20 years ago, the level of confidence of Malaysians in their judiciary has eroded."