KUALA LUMPUR (Jan 30): The lack of transparency in Malaysia’s constituency development funds (CDFs) remains a concern, particularly at the state level where oversight mechanisms are weak, a think tank said.
CDFs are intended to provide members of Parliament and state assembly members (ADUNs) with funds to address local needs in their constituencies, including small-scale infrastructure works, financial assistance for vulnerable groups and the operation of constituency service centres.
However, in Malaysia, the funds have become increasingly associated with politicisation and opaque spending practices, according to the Institute for Democracy and Economic Affairs (IDEAS) in its latest policy paper.
IDEAS said it first called for legislation to regulate CDFs and mandate public disclosure of key information in 2021, but little progress has been made since then.
Among all states, Selangor stands out as the only one with publicly available CDF-related information, mainly through disclosures by district and land offices.
This stems from a brief period between 2008 and 2010 when disclosure was mandatory, although enforcement was limited. In 2024, only three districts — Hulu Selangor, Kuala Selangor and Kuala Langat — voluntarily published CDF spending information.
Even in these relatively better-performing districts, the quality of disclosure remains uneven, IDEAS noted.
Information is often incomplete, outdated or difficult to access, while reporting tends to focus on activities rather than outcomes, offering limited insight into whether CDF spending delivers meaningful benefits to constituents.
The think tank also found significant variation in fund utilisation, with constituencies held by government representatives consistently recording higher utilisation rates.
ADUNs were more likely to fully exhaust spending limits for office renovations and social assistance, while allocations for infrastructure projects were less fully utilised.
“Overall, nationwide voluntary disclosure remains the exception rather than the norm.
"Between 2012 and 2024, only 34 out of 222 MPs published any form of constituency report cards, with just 12 MPs doing so in 2023-2024,” it said. “At the state level, only 17 ADUNs reported CDF spending between 2008 and 2024.”
To strengthen governance and accountability, IDEAS recommended that all CDF guidelines, circulars and related information be made publicly available and easily accessible.
It cited Kenya’s National Government Constituencies Development Fund (NG-CDF) website as a useful benchmark, noting that the platform offers a centralised portal with constituency-level information on allocations, expenditures and funded projects.
The think tank said CDF reporting should move beyond administrative record-keeping towards a more impact-oriented approach. It proposed that all districts adopt a consistent reporting template with clearly defined fields covering allocations, expenditures, revised allocations, balances and utilisation rates, alongside project-level details such as the number of projects, total spending and implementation status.
“Reports should attempt to capture outcomes, such as the number of beneficiaries reached, improvements in service delivery, or other measurable community benefits. Where feasible, a brief evaluation or assessment should be provided to inform the public whether the project has achieved its intended objectives,” it added.
IDEAS added that disclosure requirements should be supported by clear incentives and enforcement mechanisms. For example, the release of subsequent tranches of CDF allocations could be made conditional on the timely submission and public disclosure of expenditure reports — an approach adopted in several CDF systems internationally.