KUALA LUMPUR, Oct 7 — Putrajaya and all its agencies should adopt the Sultan of Perak’s move to enforce a no-gifts policy at official functions, anti-corruption watchdog Transparency International Malaysia (TI-M) said today.

Pointing out that it made a similar recommendation in 2012, the group such a policy will help inculcate integrity among civil servants and reduce public spending.

"Our Prime Minister, Datuk Seri Najib Tun Razak, should instruct all governmental agencies, both at federal and state levels, as well as government linked companies to cease the presentation of the customary mementos in all government and private sector functions," it said in a statement today.

The Sultan of Perak, Tuanku Nazrin Muizzuddin Shah, issued a royal decree on September 8 for all events organised by the state government and agencies not to present any gifts to him and Raja Permaisuri Perak, Tuanku Zara Salim.

Today, TI-M said government leaders should follow the Perak ruler’s precedent and set an example.

"TI-M strongly believes that this step will lead to strengthening the culture of integrity, conducting business in an open, transparent manner and thus helping to address corruption in the long run,” said TI-M.

Citing the 2014 Report to the Nations on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners (AFCE), it said an average of five per cent of revenue is lost to workplace misuse and fraud.

"It has become so common that no civil servant would want to put a stop to such waste of money," said TI-M.