THE long-awaited Political Funding Bill is targeted to be tabled in Parliament next year as the Government moves to tighten regulations governing political donations and financial flows.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the Government was currently refining nine key policy parameters to establish a comprehensive framework for political financing.
The proposed legislation is expected to regulate sources of political donations, impose contribution limits and restrict foreign funding, while introducing mandatory reporting, auditing requirements and penalties for non-compliance.
The Government is also considering the establishment of an independent regulatory body to oversee political funds.
"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.
She said political parties needed funding to operate but stressed that financial flows must be transparent and accountable.
Speaking at the Political Funding Convention 2026 today, Azalina said the Legal Affairs Division under the Prime Minister’s Department had taken over the drafting study in May 2023 following the Cabinet’s approval in principle.
Since then, the Government has held 18 engagement sessions nationwide involving 1,544 participants, alongside a public perception study involving 3,422 respondents and 11 focus group discussions.
Azalina said the Government aimed to finalise the policy framework before submitting it to the Cabinet for approval, paving the way for the Bill to be tabled in Parliament in 2027.
She said the success of the reform would depend on collective commitment from political parties, civil society, the private sector and the public to strengthen confidence in the democratic process. - September 8, 2026
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