DEMOGRAPHIC ANALYSIS OF WHISTLEBLOWING BEHAVIOUR IN OCCUPATIONAL FRAUD CASES IN MALAYSIA

International Postgraduate Conference on Accounting and Finance (IPCAF 2025) 2 May 2025 Kuala Lumpur e-ISBN: 978-967-0760-39-1 Publish Date: 14 October 2025 Paper ID: IPCAF202526 DOI: DEMOGRAPHIC ANALYSIS OF WHISTLEBLOWING BEHAVIOUR IN OCCUPATIONAL FRAUD CASES IN Muhammad Syahmi Adli Roslan 1*, Roshima Said 2 , Muhammad Hariz Hamid 3, Fazlida Mohd Razali 4 1 Accounting Research Institute, Universiti Teknologi MARA Cawangan Shah Alam, 40450 Shah Alam, Malaysia 2 Faculty of Accountancy, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia 3 Faculty of Accountancy, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia 4 Accounting Research Institute, Universiti Teknologi MARA Cawangan Shah Alam, 40450 Shah Alam, Malaysia *[email protected] ABSTRACT Whistleblowing plays a crucial role in exposing occupational fraud, yet in Malaysia, it remains relatively limited even after the introduction of the Whistleblower Protection Act 2010 (WPA). While prior studies have investigated factors encouraging or discouraging whistleblowing, few have specifically examined the influence of demographic factors. This paper explores the relationship between demographics— such as age, gender, education, ethnicity, and job position—and the likelihood of reporting fraud in Malaysian workplaces. A literature review of academic studies and official reports was conducted. Findings suggest that job level and education exert the strongest influence, with individuals in senior positions or with higher educational attainment being more willing to report misconduct. Conversely, age and gender appear to have minimal impact. Organisational type also matters, with employees in government-linked organisations being more likely to report wrongdoing, particularly when perceptions of fairness are high. These insights highlight the need for whistleblowing frameworks that are inclusive of demographic diversity to foster a more equitable reporting culture in Malaysia. Keywords: Whistleblowing, Occupational Fraud, Demographic Factors, Malaysia, Fraud Reporting Behaviour International Postgraduate Conference on Accounting and Finance (IPCAF 2025) 2 May 2025 Kuala Lumpur e-ISBN: 978-967-0760-39-1 Publish Date: 14 October 2025 1. INTRODUCTION Whistleblowing serves a critical role in uncovering occupational fraud, enabling employees to report misconduct within organisations. Despite the protections offered by Malaysia’s Whistleblower Protection Act 2010, whistleblowing practices remain underutilised. Previous research has predominantly explored organisational culture, ethics, and external pressures affecting whistleblowing decisions. However, the influence of demographic factors—such as age, gender, education, and job position—remains underexplored in the Malaysian context. This paper investigates how these characteristics impact whistleblowing behaviour, focusing on employees' decision-making processes in reporting fraud. 2. LITERATURE REVIEW Whistleblowing behaviour is shaped by multiple factors. Although the Whistleblower Protection Act (WPA) provides legal protection, demographic variables such as education level, seniority, and religious beliefs also play important roles. Mansor et al. (2020) highlight that professional commitment and independence encourage external auditors in Malaysia, particularly those in senior positions or with higher education levels, to report fraud. In addition, Mansor et al. (2022) found that religiosity positively influences Muslim auditors' decisions to blow the whistle, as strong religious values bolster moral responsibility and self-efficacy. Research on Malaysian civil servants further shows that ethnicity and organisational commitment are key determinants of whistleblowing intentions. Solikhah et al. (2020) suggest that employees from certain ethnic backgrounds, influenced by strong organisational loyalty, are less likely to report wrongdoing. Similarly, Pangestu and Rahajeng (2020) assert that employees in high power distance cultures, like Malaysia, are generally reluctant to question or report superiors, making whistleblowing less likely. While the WPA aims to encourage whistleblowing, its effectiveness is often compromised by limited awareness and persistent organisational barriers. Sani et al. (2020) argue that power distance discourages employees from using formal reporting channels, highlighting the need for greater education about whistleblower protections. Lastly, Potipiroon and Wongpreedee (2020) found that age and gender are not significant predictors of whistleblowing tendencies. 3. METHODOLOGY This study employs a secondary data review approach, analysing existing literature on whistleblowing behaviour in Malaysia. Key sources include academic journal articles, government reports, and corporate sector surveys. A thematic synthesis method was used to explore how demographic characteristics correlate with whistleblowing behaviour in occupational fraud cases, providing a comprehensive understanding of the topic. 4. DISCUSSION AND CONCLUSION This demographic analysis indicates that professional commitment and independence strongly influence whistleblowing decisions among Malaysian external auditors. Religiosity, particularly among Muslim auditors, also positively impacts whistleblowing intentions. Ethnicity and organisational commitment affect civil servants' willingness to report misconduct, especially within government sectors. However, significant barriers remain. Power distance and moral intensity discourage whistleblowing, particularly within hierarchical organisations. Although the WPA provides legal safeguards, its effectiveness is limited by a lack of awareness and persistent organisational culture issues. To foster a stronger whistleblowing culture, it is essential to promote organisational justice, enhance training programmes, and raise awareness about the WPA. Future research should explore how multiple demographic factors interact to influence whistleblowing behaviour. International Postgraduate Conference on Accounting and Finance (IPCAF 2025) 2 May 2025 Kuala Lumpur e-ISBN: 978-967-0760-39-1 Publish Date: 14 October 2025 5. ACKNOWLEDGMENT The authors would like to express their sincere gratitude to the Ministry of Higher Education of Malaysia, for the generous funding provided under the Fundamental Research Grant Scheme (FRGS) (FRGS/1/2023/SS02/UITM/02/22). 6. REFERENCES Mansor, T. M. T., Ariff, A. M., Ngah, A. H., & Hashim, H. A. (2022). Religiosity and external whistleblowing intention. Asian Journal of Business and Accounting, 15(2), 111–147. https://doi.org/10.22452/ajba.vol15no2.4 Pangestu, F., & Rahajeng, D. K. (2020). The effect of power distance, moral intensity, and professional commitment on whistleblowing decisions. Journal of Indonesian Economy and Business, 35(2), 144– 162. https://doi.org/10.22146/jieb.55010 Potipiroon, W. and Wongpreedee, A. (2020). Ethical climate and whistleblowing intentions: testing the mediating roles of public service motivation and psychological safety among local government employees. Public Personnel Management, 50(3), 327-355. https://doi.org/10.1177/0091026020944547 Sani, N. B. A., Salim, A. S. B. A., & Jaffar, N. B. (2020). Limitation factors of whistleblowing practices among public sector internal auditors in Malaysia: In-depth interview study. International Journal of Business Continuity and Risk Management, 10(2-3), 133–145. https://doi.org/10.1504/IJBCRM.2020.108511 Solikhah, B., Ismayunda, A. P., Yulianto, A., Suryarini, T., & Ulupui, G. K. A. (2020). Identifying factors influencing civil service intentions to conduct whistleblowing. Management Science Letters, 10(12), 2695–2704. https://doi.org/10.5267/j.msl.2020.5.001 Tuan Mansor, T. M., Mohamad Ariff, A., & Hashim, H. A. (2020). Whistleblowing by auditors: The role of professional commitment and independence commitment. Managerial Auditing Journal, 35(8), 1033–1055. https://doi.org/10.1108/MAJ-11-20192484