KUALA LUMPUR: A list of policy recommendations for the proposed Political Financing Bill will be presented to a parliamentary select committee soon for further scrutiny and feedback, says Datuk Seri Azalina Othman Said.
The Minister in the Prime Minister's Department (Law and Institutional Reform) said the recommendations would subsequently be finalised for Cabinet's consideration.
She said the proposed legislation would cover several key areas, including the scope of the law, sources and limits of political contributions, mechanisms for receiving funds, reporting requirements, audits, transparency, offences and penalties.
"These policy recommendations will be presented to the Parliamentary Special Select Committee on Human Rights, Elections and Institutional Reform in the near future for further examination and feedback before being finalised for the Cabinet's consideration," she said in a written parliamentary reply on Monday (Oct 26).
Azalina was responding to Datuk Seri Tuan Ibrahim Tuan Man (PN-Kubang Kerian), who asked what safeguards would be included in the proposed legislation to protect donors to political parties, including the opposition, from retaliation or abuse of government powers through tax audits, licence reviews or government contracts.
Addressing these concerns, Azalina said one of the principles under consideration was that individuals making lawful political contributions should not face retaliation or unfair treatment solely because of their donations.
However, she stressed that such protection would not grant political donors immunity from the law.
“Where legitimate and independent grounds existed, including tax non-compliance, breaches of licensing conditions, criminal offences or irregularities in government procurement, enforcement action could still be taken under existing laws,” she said.
Azalina said a clear distinction must be maintained between lawful political contributions and the government's responsibilities in auditing, regulation, enforcement and procurement.
“Proposed requirements for periodic reporting, audits and public disclosure, alongside appropriate offences and penalties, would help ensure that all parties were subject to the same rules and held accountable for violations,” she said.
On the Bill's progress, Azalina said the Legal Affairs Division of the Prime Minister's Department had taken over the study in May 2023, with its policy scope agreed upon on Sept 8 that year for referral to the parliamentary select committee.
She said research findings showed that 88.4% of 3,422 survey respondents supported the need for specific legislation governing political financing, alongside engagement sessions involving 1,544 stakeholders.
“The division subsequently organised the Political Financing Convention 2026 on Sept 8, in collaboration with the International Islamic University Malaysia and the Institute for Democracy and Economic Affairs (Ideas), to present its research findings and gather further stakeholder feedback.”
Azalina said the government's commitment to introducing the legislation remained in line with the National Anti-Corruption Strategy (NACS) 2024–2028, with the aim of establishing a clearer, more transparent and accountable political financing framework.
