KUALA LUMPUR (April 3): The slow progress in rolling out a bill aimed at regulating political party funding and expenditure could undermine broader reforms in Malaysia, a think tank warned.

The continued absence of the proposed Political Financing Bill, despite repeated commitment from the government, raises serious concerns about the pace and depth of the reform agenda, the Institute for Democracy and Economic Affairs (Ideas) said in a statement on Friday.

“The glaring omission of the Political Financing Bill cannot be ignored,” said Ideas CEO Aira Azhari.

While the issue of political financing is not new, it has gained heightened scrutiny following a scandal involving former prime minister Datuk Seri Najib Abdul Razak, who received RM2.6 billion in his personal bank accounts misappropriated from a state investment fund.

In 2023, Prime Minister Datuk Seri Anwar Ibrahim had pledged to enact a political donation law ahead of the 16th general election. However, progress has been sluggish with Deputy Law Minister M Kulasegaran saying in January that a public perception study on the bill is still ongoing.

Initiatives under phase two of the Madani Accountability Framework that covers May to August 2026, including the proposed Ombudsman Bill and Freedom of Information legislation, are crucial towards strengthening accountability, transparency and the rule of law, Ideas noted.

However, when it comes to the political financing bill, there is still no clear legislative timeline, no draft bill and no indication of when it will be tabled.

“With four more months remaining in the year after that, what assurance do we have that the bill will come to light even then?” Aira asked. “We are concerned that there is a disconnect between stated commitments and actual policy delivery.”

Political financing reform is a foundational pillar of the accountability framework and without it, the government’s broader reform efforts risk lacking credibility and impact, the think tank cautioned.

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