The Malaysian government is seeking formal input from all 72 registered political parties on the proposed Political Funding Act, as part of ongoing efforts to draft legislation aimed at regulating political contributions ahead of the next general election. Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department for Law and Institutional Reform, emphasized the importance of obtaining official written feedback from each party to ensure transparency and accountability in the legislative process.

Azalina noted that while public response to the bill has been largely positive, securing formal positions from political parties would provide clear evidence of their support—or objections—toward the law and allow them to propose amendments. She expressed surprise at the prospect of parties opposing the legislation, suggesting that those advocating for anti-corruption measures would likely endorse tighter controls on political funding.

Key issues under consideration include the regulation of foreign donations to prevent external influence, potential tax exemptions for donors, requirements for disclosing the sources of contributions, and whether individuals may donate to multiple parties. Azalina acknowledged concerns that stringent disclosure could deter legitimate contributions, underscoring the need to balance transparency with protections for lawful donors. She also highlighted the necessity of clarifying the role of the Malaysian Anti-Corruption Commission in investigating donors, to prevent undue scrutiny solely based on making political donations.

The Minister further explained that these matters would be central topics in parliamentary debates, noting that politicians must actively participate since the legislation will directly affect their financing practices. The bill’s development has involved extensive consultation, with 18 engagement sessions attracting over 1,500 participants convened by the legal affairs division under the Prime Minister’s Department since May 2023. Additionally, a public perception survey of more than 3,400 respondents has been conducted to gauge general attitudes toward political funding reform.

Among the elements being finalized are nine policy parameters addressing contribution sources and limits, foreign donations, the traceability of funding channels, reporting obligations, auditing and disclosure standards, and the definition of offences and penalties. Azalina reiterated the government’s goal to implement the Political Funding Act before the next general election, aiming to enhance transparency and institutional integrity in Malaysia’s political financing landscape.