Security is a necessary condition for businesses to operate successfully. To promote economic growth, governments have to provide a safe environment to the business community. If not, security and crime concerns will have a negative impact on the business climate. Crime like theft, robbery, vandalism, and arson “act like a tax on the entire economy”. It serves as an entry barrier to new business, discouraging both domestic and foreign direct investments. Because of the threat of crime, firms may need to protect their assets by hiring security services and installing alarm systems. Such allocation of resources undermines profit maximization by adding to operating costs. Although local governments do not have authority over local police forces, they are involved in making decisions related to combating crime and maintaining law and order in their districts. Therefore, crime and security are important indicators of local governance.

The Crime & Security Sub-index aims to measure the amount of financial loss due to crime and the need to hire security services for protection.

The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.

In partnership with:

The Malaysia Business Environment Index (2012) is the result of the collaborative efforts of many individuals. The authors of the report were Dr. Jane Terpstra Tong (Monash University Sunway Campus), Nina Merchant-Vega (The Asia Foundation) and Dr. Robert Terpstra (Monash University Sunway Campus). Expert technical advice was provided by Dr. Edmund Malesky (University of California, San Diego). Valuable comments and support were provided by Anthea Mulakala, Reid Hamel, Herizal Hazri, Dr. Yeah Kim Leng, Kristina Fong, Jason Fong, and Munsifah Abdul Latiff. Research assistance was provided by Koh Jen Li, Peg-Gy, and Collin Gerst.

The survey data visualization project "Business Environment Index: Malaysia" was led by John Karr, Director for Digital Media at The Asia Foundation. Steve Ubiera, Production and Systems Administrator for The Asia Foundation served as the project manager and data visualization designer. Site development was conducted by William Wang and Johan Baversjo.