Malaysia
Should political parties’ donors be protected? Azalina says issue among those being studied
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said today that this was among the technical issues that have to be studied before steps are taken to introduce a political financing law in Malaysia. — Picture by Choo Choy May

 

KUALA LUMPUR, Sept 8 — If Malaysia were to have a law regulating donations to political parties, should it protect donors from being pursued by anti-corruption investigators after donating money?

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said today that this was among the technical issues that have to be studied before steps are taken to introduce a political financing law in Malaysia.

Azalina today listed nine parameters or areas of the proposed political financing law that are currently being fine-tuned, including who the law will cover; the supervisory body; the source and limits of donations; prohibition on foreign donations; traceable ways of receiving funds; reporting, auditing and disclosure; and offences and penalties.

At a press conference here, Azalina gave examples of issues that still have to be considered under the proposed law, including foreign donors.

Azalina said some countries, for example, prohibit foreigners from donating, while others have procedures requiring foreign donors to disclose their donations.

“Secondly, when you donate, will you be subjected to income tax deduction, or you must inform the source of your money? If everyone who donates have to inform the source of the money, maybe many will not want to donate,” she said at a press conference after the Political Financing Convention 2026.

Noting that some people might donate to all political parties as a form of “buying insurance”, Azalina said another issue to be considered was whether the law would allow donors to contribute to more than one political party.

She added that there was a possibility that no one would want to donate to political parties if such a law were introduced.

“And fourthly, do we want to make sure that when people donate, MACC won’t come and disturb, ‘why you donate?’” she said.

Later, when speaking on the same point, Azalina said she personally felt that political parties could issue receipts to donors, but said it had to be studied whether “to give protection to donors”, as donors might be deterred from donating if they were pursued after making donations.

“But we must give protection to donors also. If not, who will want to donate right?” she said at another point.

“But I agree if it’s a foreign donor, we must have a certain process. There must be a procedure, whether select committee or Parliament is informed, because if a foreign donor wants to influence our decision, this is also a problem right,” she said.

Azalina had explained that the Prime Minister’s Department’s Legal Affairs Division (BHEUU) had been carrying out engagement studies and surveys over the past two years.

Azalina today urged BHEUU to obtain written official views from political parties on whether they agreed with having a political financing law in Malaysia.

After that, Azalina said the proposed law would be brought to the Cabinet for evaluation from multiple perspectives.

She told the media that the Cabinet would then decide on the final “format” of the technical aspects of the proposed law before the Bill is brought to Parliament to be voted on.

Earlier, when speaking as minister in a speech at the same convention, Azalina said the government’s goal was not just to enact laws, but to ensure they were truly effective and capable of being implemented.

She had spoken of the simple principle of being “transparent but practical, stern but fair, and accountability without curbing the legitimate democratic process”.

Today, Azalina, when giving her personal opinion as a lawyer and MP, said politicians could easily find themselves being charged with corruption if there is no political funding law in Malaysia to regulate donations to them.

Recommended reading:

Azalina: Malaysians want political funding law before GE16; political parties’ buy-in needed to avoid delay 

Azalina: Politicians could face corruption charges without political financing law 

 

 

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