KUALA LUMPUR: The long-awaited Political Funding Bill could be tabled in Parliament next year as the government refines draft proposals covering contribution limits, foreign donation bans, and stricter financial disclosure.
Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said disclosed Tuesday (Sept 8) that nine key policy parameters are currently under review to establish a comprehensive legal framework governing political financing.
Speaking at the Political Funding Convention 2026, Azalina said the proposed parameters focus on regulation of donation sources, limits on contributions, restrictions on foreign funding, mandatory reporting, auditing requirements, and penalties for non-compliance. The establishment of an independent regulatory body to oversee political funds is also being considered.
"Without a clear framework, political funding can create room for conflicts of interest, abuse of power, political corruption, and undue influence in decision-making," Azalina said, emphasizing that while parties require funding to operate, financial flows must remain transparent and accountable.
She noted that the Legal Affairs Division under the Prime Minister's Department took over the drafting study in May 2023 following Cabinet approval in principle. Since then, the government has conducted 18 engagement sessions involving 1,544 participants nationwide, alongside a public perception study surveying 3,422 respondents and 11 focus group discussions.
Azalina stated that the government aims to finalize the policy framework before submitting it for Cabinet approval, targeting a parliamentary tabling in 2027. She added that successful reform requires collective commitment from political parties, civil society, the private sector, and the public to restore trust in the democratic process.
