KUALA LUMPUR: About 70% of the proposed amendments to the Majlis Amanah Rakyat (Mara) Act 1966 will focus on strengthening corporate governance, including preventing abuse of power and conflicts of interest within the organisation.
Mara chairman Datuk Dr Asyraf Wajdi Dusuki said the amendments were necessary as the existing law remained limited within a 1960s governance framework and gave excessive concentration of power to the chairman and the Mara council.
He said such a structure could expose the institution to risks of abuse of power, manipulation and misappropriation if not regulated through a clearer legal framework.
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"If we look at the current Act, there have only been minor amendments while the concentration of power in the chairman and council is too extensive.
"I could simply influence council members, for example, by recommending that RM100mil be allocated for my own interests or the interests of council members.
"No one would be able to question it because under the current rules, the council members can make such decisions," he said on Thursday (May 14).
Asyraf said the bulk of the proposed amendments under the new Mara Bill 2026, which will be tabled to the Cabinet and later Parliament, centred on ensuring good corporate governance and stronger checks and balances.
Among the key proposals are the establishment of governance bodies mandated by law, including the Mara audit committee, risk committee, finance and governance committee, as well as investment committee.
The amendments will also introduce fit-and-proper criteria for the appointment of Mara council members while clarifying the institution’s roles and mandate.
"The drafting of the Bill is aimed at strengthening governance to ensure the institution remains credible and free from abuse of power," Asyraf said.
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He added that an institution as large as Mara could not depend solely on individuals, as excessive concentration of power among the chairman and council members could open the door to leakages and manipulation.
"People may come and go – director-generals, council members – but the institution must remain with a proper and orderly governance structure.
"A sound governance structure requires separation of powers between the management led by the director-general and the council as the body responsible for determining policies and organisational direction," he said.
Asyraf also said the separation of powers between the board and management was not clearly reflected in the existing Act, resulting in weak oversight mechanisms.
"This creates room for abuse, intrusion and manipulation for individual interests.
"Mara today is no longer a small institution like it was when the Act was drafted in 1966. It now manages assets worth RM23bil, 345 educational institutions, as well as major investment and entrepreneurial development sectors," he said.
He added that the amendments were crucial to ensure Mara remained strong and resilient despite changes in leadership.
