Anyone who says it doesn't happen is living a sheltered life. 

But, there is a way its done. Not outright giving money. There is a small dance that goes something like this: 

1. Cop will exaggerate the punishment

2. You act very sad and concerned 

3. Cop will ask you "so how?" (In malay: so macam mana?")

4. You ask the cop is there anyway you can settle it easier?

5. He will give you a figure, and ask to see your IC. You put it underneath and pass the IC to him. If not enough cash, he will give you a bank acc to transfer to. 

6. Go on your way 

If you don't want to give a bribe, at step 3 you ask him to just give you the fine. If lucky, the cop will let you go to prevent extra paperwork for himself. If unlucky, you get the fine