THE proposed Political Financing Bill is currently under detailed review, with its policy parameters to be referred to the Parliamentary Special Select Committee for consideration before formal drafting begins, the government confirmed today.
Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said, said the process is still at the consultation stage and is being shaped by feedback from a wide range of stakeholders across federal and state levels.
“Eighteen engagement sessions have been held so far with representatives from political parties, village development and security committees (JPKK and JPKKP), chambers of commerce, business associations, non-governmental organisations, academics and youth groups,” Azalina said in a written parliamentary reply.
The Pengerang MP added that further grassroots engagement is ongoing at the state level to gather public input and ensure the draft legislation reflects ground realities and concerns.
Key policy issues raised during consultations include proposals for public funding of political parties, mandatory disclosure of financial statements, donation caps, and clearer definitions around permissible and prohibited donors.
Azalina also confirmed that a public perception study on the proposed Political Financing Bill is underway, led by a multidisciplinary team of researchers from various public universities, headed by the International Islamic University Malaysia (IIUM), in collaboration with civil society organisations.
“The study is expected to run for four months and conclude by December,” she said.
The move to regulate political financing follows calls by the Malaysian Anti-Corruption Commission (MACC) earlier this year to expedite the bill’s formulation. MACC Chief Commissioner Tan Sri Azam Baki, in February, urged the government to prioritise legal reforms to address election campaign financing, given the country’s upcoming electoral calendar.
The bill, once passed, is expected to reduce corruption risks and limit abuse of power among political actors while improving transparency and public trust in Malaysia’s democratic institutions.
Azalina reiterated that the government remains committed to institutional reforms under the MADANI governance agenda and views the Political Financing Bill as a crucial step toward building a cleaner, more accountable political system. - October10, 2025
