THE government has been urged to introduce stricter guidelines governing the management and use of funds by non-governmental organisations (NGOs), including stronger and more sustained monitoring mechanisms to safeguard public donations.
Alliance for a Safe Community chairman Tan Sri Lee Lam Thye said the proposed reforms are necessary in light of recent cases involving alleged misappropriation of NGO funds currently being investigated by the Malaysian Anti-Corruption Commission (MACC).
He stressed that all NGOs collecting public donations should be required to submit regularly audited financial statements, which should also be made publicly accessible to ensure transparency and accountability.
He further suggested that the government consider establishing a dedicated regulatory body or strengthening existing agencies to oversee fundraising activities and financial governance within the NGO sector.
“It is time for the government to consider the need to enact specific legislation regulating NGO operations, particularly in the collection and use of public funds,” he said.
“The government should also take firm legal action as a lesson and preventive measure against those found to have misused public funds,” he added in comments to Berita Harian.
Lee said the proposals are crucial as public donations are driven by trust in charitable missions, and any breach of that trust constitutes a betrayal not only of donors but also of vulnerable communities who depend on such assistance.
At the same time, he cautioned against allowing isolated cases of misconduct to undermine the credibility of legitimate and well-managed NGOs.
However, he stressed that systemic reform is necessary to ensure the sector remains credible, respected and continues to serve as a key partner in national social development.
“If this issue is not addressed firmly and comprehensively, it could jeopardise the continuity of operations of NGOs that are truly transparent and have integrity,” he said.
Lee added that while enforcement is essential, regulatory improvements must also ensure that genuinely transparent organisations are not unfairly affected by the actions of a minority of bad actors.- April 25, 2026
