Political funding: Govt to propose recording of foreign funds, including via NGOs

KUALA LUMPUR: The proposed Political Financing Bill seeks to prohibit political parties from accepting foreign funds, including those routed through third parties, subject to the same regulatory oversight. Minister Datuk Seri Azalina Othman Said stated that this proposed regulation would apply at both the federal and state levels, as well as throughout the political process, both before and after elections.

She emphasized that the aim is to ensure transparency and accountability in the handling of political funds. The Bill also proposes that political funds must be received and utilized through official channels, which can be recorded, traced, and audited. This encompasses regular reporting, the submission of audited financial statements annually, and the public disclosure of funding details, once the final specifics are determined in the Bill's drafting phase.

Azalina explained that the Legal Affairs Division of the Prime Minister's Department, in collaboration with the International Islamic University Malaysia and the Institute for Democracy and Economic Affairs (Ideas), convened the 2026 Political Financing Convention on September 8. The convention compiled research findings and collected additional perspectives from various stakeholders.

Based on these findings, a series of policy recommendations were drafted and are set to be presented to the Parliamentary Special Select Committee for review and further input before being finalized for cabinet consideration. Azalina addressed concerns raised by Datuk Idris Ahmad regarding the prevention of foreign funds from being channeled through non-governmental organizations (NGOs) or third parties to finance political campaigns or activities supporting specific parties or candidates.

She also clarified that the Bill would necessitate the disclosure of funding sources and expenditures.