It is almost impossible to determine the true extent of public sector corruption in Malaysia. Given the public sector’s dominance in performing the tasks of not only providing public policy inputs into the decision-making processes of development planning but also the implementation, monitoring and evaluation of projects and programmes deemed necessary to fulfil citizens’ expectations and needs public sector corruption in this area is a cause for concern. The latest data from the Public Services Department (PSD), Malaysian Anti-Corruption Commission (MACC) and reports of the Auditor General (AG) provide ample evidence of corruption and corrupt practices that have taken place in development management. However unless the various means and strategies introduced can boost the integrity and ethical conduct of civil servants, address institutional constraints and eliminate the ways with which rules, regulations and good operating procedures and practices can be circumvented, issues and challenges remain on how public sector corruption can be effectively addressed, so that development projects and programmes can bring about optimum benefits for the target community groups.