KUALA LUMPUR (Dec 9): The Institute for Democracy and Economic Affairs (IDEAS) has urged the government to introduce clear requirements for political actors to disclose how they fund and coordinate political influencer activities, warning that the rise of paid digital opinion leaders is now shaping public discourse with minimal transparency.

IDEAS said modern influencers have become central to the dissemination of political messaging, with government and political party machinery increasingly pivoting towards commercial influencer engagement to reach audiences disengaged from mainstream media.

Its latest report, titled Political Influencers in Malaysia: Growth, Methods and Policy Implications released on Tuesday, found that politically commissioned content is not only lucrative but also central to the financial sustainability of political influencers.

“The report shows a growing pivot by government and political party machinery towards the use of influencers in disseminating information, with money moving invisibly and leaving the public to decipher what is authentic and what is disingenuous,” co-author and senior executive of research at IDEAS Sabrina Firdaus Aloysius said in a statement.

"In Malaysia, where rules for political financing and spending remain under deliberation and where influencers are not subject to journalistic standards, there are potentially significant implications for transparency, accountability, and democratic integrity in Malaysia’s digital public sphere," the executive summary of the report read. 

Co-author of the report Dr Ross Tapsell said that while the influencer economy has become a growing form of political media buy, “very little is known about their financial models and payment is rarely declared”.

"Transparency and accountability are crucial to Malaysia’s democratic reforms. Citizens deserve to know who is paying for content that shapes their political choices," he said.

Interviews cited in the report show that payments are typically structured on a project basis and closely tied to performance metrics.

Some influencers reported receiving RM2,500 monthly for around 30 posts, while others said monthly payments of RM1,000 for policy-related content ceased once viewership declined.

Fees range widely, from several hundred ringgit per post for micro-influencers, to RM500 for a short video, to contracts worth RM20,000 to RM40,000 for a five-minute video for top-tier creators with national reach. 

The report also highlights the crucial role of intermediaries, including public relations firms and influencer agencies, which negotiate tiered packages ranging from basic posting to bundled production and networked distribution, often absorbing a substantial share of allocated funds before payments reach influencers.

One content creator interviewed said they received RM1,000 per month while the official allocation for their role was RM3,000, citing “mouths to feed” along the chain, while another interviewee noted that agencies “build in the budget for them to disperse to the KOL (key opinion leader)”.

IDEAS further noted that political financing flows underpin the expansion of influencer activity, with funding sourced from both taxpayer-funded communications budgets and direct disbursements from political parties.

Interviewees in the report cited RM2 million as a baseline allocation for each ministry, with claims that the Health Education and Communications Centre managed budgets as large as RM14 million, while the ministry running the Agenda Nasional received RM25 million annually, covering digital promotions and on-the-ground outreach programmes.

IDEAS chief executive officer Aira Azhari said transparency remains critical to safeguarding trust in the digital public sphere and reiterated the think tank’s call for a Political Financing Act with clear public disclosure rules.

“IDEAS has long called for a Political Financing Act with clear and enforceable rules on public disclosure of party funding and a strong regulatory framework for private and public donations. In today’s digital media landscape, transparency is essential to safeguard public trust, protect democratic integrity, and ensure any content that may sway public opinion is held accountable,” she said.