KUALA LUMPUR (Jan 26): Mandatory public disclosure of political parties’ financial reports is among proposals being considered by the government as it works to formulate a political financing bill, Deputy Law Minister M Kulasegaran said.
He said the proposal was submitted to the Legal Affairs Division of the Prime Minister’s Department following 20 stakeholder engagement sessions involving representatives from the government, business chambers, civil society organisations (CSOs), non-governmental organisations (NGOs) and academia.
Other proposals include public funding for political parties, caps on political donations, and restrictions on eligible donors, Kulasegaran told the Dewan Rakyat during the question-and-answer session on Monday.
He added that a public perception study on political financing is currently underway, led by the International Islamic University Malaysia (IIUM) in collaboration with NGOs and CSOs. The study runs from Sept 1, 2025, to Feb 28, 2026.
“Inputs from the engagement sessions and findings from the study will be used to set policy parameters for a proposed political financing bill, with policy recommendations to be referred to the Dewan Rakyat Special Select Committee on Human Rights, Elections and Institutional Reforms for further consideration,” Kulasegaran said.
Calls for a political financing law intensified following reports that former prime minister Datuk Seri Najib Razak had received funds in his personal accounts — which he said were political donations from Saudi Arabia — amid the multibillion-ringgit 1Malaysia Development Bhd (1MDB) scandal.
An earlier version of the bill released in 2022 proposed several restrictions, including a ban on foreign donations, except for purposes related to training, skills or policy development.
It also proposed donation caps of RM50,000 per individual annually, RM100,000 per company, and RM500,000 for donations made by a group of companies.
The bill further outlined the establishment of a Political Party Fund overseen by a commission, which would collect parliamentary allocations, donations, and monies recovered or confiscated under the Act.
Up to RM130 million could be allocated annually from the fund to political parties, based on region, votes obtained and the number of elected women representatives. The allocation would be reviewed every five years and would require parliamentary approval.
Those found to have breached the Act would be liable to a fine of up to RM10,000, imprisonment of up to six months, or both.
Separately, Subang member of Parliament Wong Chen last week called for stricter limits on political donations, warning that policymakers risk becoming “puppets” of the ultra-wealthy without reform.
He said that Malaysia needed a comprehensive political financing law to curb corruption and prevent undue influence by wealthy donors.
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