This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Last week, Prime Minister Datuk Seri Anwar Ibrahim said the cabinet had ordered a study on a proposed Charities Bill to regulate public fundraising. The planned law is to ensure that funds held in trust are administered “transparently and responsibly”.

This is a welcome development, particularly in light of controversies in recent years involving alleged irregularities in charitable organisations, with Aman Palestin being among the most high-profile cases.

In February 2024, three individuals, including the then executive chairman and CEO of Aman Palestin, were charged with 164 counts of criminal breach of trust, cheating and money laundering involving tens of millions of ringgit. The case unsettled Malaysians as Aman Palestin, a non-profit organisation, had raised funds from the public to be channelled to Palestine.

Charities play an important role in society, but their good intentions alone should not be enough to command public trust. A proper legal framework could help establish clearer standards on how funds are collected, managed and spent. It would certainly give donors greater confidence if they knew there were mechanisms in place to address potential misuse or abuse.

The challenge, however, will be to ensure that the regulation does not become so onerous that it hurts smaller, genuine organisations that may not have the resources of larger charities.

The law should therefore strike a balance. It needs to protect the public without making it unnecessarily challenging for charities to do their work.

Ultimately, charity depends on trust. The proposed law should ensure that trust is backed by transparency, accountability and proper oversight.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.