Political Financing Act: A test of integrity and political will

FOR decades, Malaysia’s political system has operated in a grey zone of financing where party donations, campaign funds and expenditures have flowed with little transparency or oversight. Malaysia’s last serious attempt to address this gap came in 2015 when the Consultative Committee on Political Financing (JKNMPP) was established. However, none of its recommendations were implemented. The Electoral Reform Committee Report 2018 also proposed the creation of a Political Financing Act (PFA) but progress has since stalled.

While existing laws such as the Elections Act 1958, the Election Offences Act 1954 and the Societies Act 1966 provide some regulations, they do not define the sources, limits or disclosure requirements for political donations. The latest update indicates that the PFA is still in the process of gathering public feedback, according to the Minister of Law and Institutional Reform in the Prime Minister’s Department, Datuk Seri Azalina Othman Said (Oral Answer No. 60, February 2025). This is a welcome step, but one that must now move toward enactment.