POLICY recommendations for the proposed Political Funding Bill will be submitted to a parliamentary special select committee for scrutiny before the draft is finalised for Cabinet consideration.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the recommendations followed research, stakeholder consultations and an assessment of the findings.
In a written parliamentary reply published on Parliament’s website, she said the Legal Affairs Division (BHEUU) had organised the Political Funding Convention 2026 on Sept 8 in collaboration with the International Islamic University Malaysia (IIUM) and the Institute for Democracy and Economic Affairs (IDEAS).
The convention presented research findings and gathered feedback from stakeholders to inform the proposed legislation.
Azalina said the recommendations covered the scope of the law, sources and limits of political contributions, procedures for receiving funds, reporting requirements, audits, transparency, offences and penalties.
She also addressed concerns that political donors could face tax audits, licence reviews or scrutiny of government contracts because of their contributions.
Azalina said the principle under consideration was that individuals or companies making lawful political donations should not face retaliation or unfair treatment solely because they had contributed funds.
However, she stressed that this would not exempt donors from the law.
“Where there are legitimate and independent grounds, such as tax non-compliance, breaches of licensing conditions, criminal offences or issues involving government procurement, appropriate action may still be taken in accordance with the law,” she said.
She explained that the legislation must establish a clear distinction between lawful political contributions and the government’s responsibilities in auditing, regulation, law enforcement and public procurement.
Azalina added that periodic reporting, audits and public disclosure, supported by appropriate offences and penalties, would help ensure the rules applied equally to all parties and that violations could be addressed. - October 27, 2026
