Academic proposes watchdog for crowdfunding, fundraising
PUTRAJAYA: An academic has called for a dedicated commission to strengthen governance and integrity in Malaysia's crowdfunding and fundraising sectors.
Malaysian academic Dr Muhammad Iqmal Hisham Kamaruddin has proposed the establishment of a dedicated commission to improve governance and integrity within Malaysia's crowdfunding and fundraising sectors. This recommendation emerged from his research identifying regulatory gaps and overlapping functions among existing authorities. At the Fifth National Governance, Integrity and Anti-Corruption Research Conference 2026, Dr Kamaruddin presented three regulatory models for consideration.
The first model proposes creating a single commission with full regulatory functions, consolidating the roles of three existing authorities. This approach aims to eliminate overlapping powers over public funds. The second model suggests a commission with specific regulatory functions while leaving registration with existing bodies. The third option involves forming a council or committee to coordinate regulatory functions if the government opts not to establish a standalone commission.
Dr Kamaruddin emphasized that the first model is the preferred option as it combines the functions of three relevant authorities into one, addressing regulatory gaps caused by the absence of a comprehensive law governing crowdfunding. The proposed commission would oversee aspects such as financial reporting, audits, disclosures, and other governance requirements.
Additionally, the study recommended introducing a dedicated Charities Act or Crowdfunding Act, establishing a governance framework, and differentiating entities based on size and funds raised. The research also suggested implementing a rating system and digitalised record-keeping.
Other proposals included strengthening security screening for trustees, providing external audit support for smaller non-profit organisations and NGOs, granting the commission stronger enforcement powers, and conducting public awareness campaigns. The commission could also oversee professional certification and training in crowdfunding governance, establish an industry association or council, and promote public awareness.
Dr Kamaruddin's study involved surveying 1,000 respondents nationwide, conducting five focus group discussions with stakeholders, and holding an engagement session with three relevant authorities.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
