AUGUST 25 — “G25 had previously issued a statement dated July 30, 2022 congratulating the All-Party Parliamentary Group for announcing its proposals on a political financing bill to regulate political donations and thereby make Malaysian politics cleaner, less prone to corruption and more respectable in the eyes of the people as well as to the outside world. Earlier, the government had achieved success on a major democratic reform with parliament passing the anti-party hopping law. It’s a major progressive step towards protecting the integrity of federal and state elections.
We in G25 are pleased to note that the APPG members from various political parties spoke up to express their support for regulating political donations and setting limits on what political parties can receive from each donor, whether it’s a company or an individual. GLC donations are not allowed in the APPG proposal. In view of the limitations placed on donations, the APPG members said that there will be federal funding to assist political parties get financial assistance for their political activities. The proposal is that this legislation on political financing will be enforced by a new agency to be created in the form of a commission with full autonomy to administer the law on political financing with fairness and justice to all political parties.
We are pleased to hear from the Minister of Law in the Prime Minister’s Department, a few days after the APPG announced its proposals, that this reform on political financing is now being studied in the government and that he expected the matter will likely be tabled at the coming October meeting of Parliament. In his statement, Datuk Seri Wan Junaidi Tuanku Jaafar highlighted the key features of the reform, in particular the limits on donations, the ban on GLC donations and the public funding to compensate political parties for the restrictions on receiving donations and assist them financially in the running of their political activities.
G25 supports the APPG proposals as our view is that although the setting up of a new agency and the provision of federal funding to political parties will cost extra spending in the budget ; and although we understand the need for fiscal prudence, we also believe that with the reforms proposed on political financing, the benefits that will accrue to the country will be much greater than the costs of defending the integrity of our democracy. Local and foreign investors can plan ahead to expand their operations in our economy resulting in them making more profits and paying more corporate and personal income taxes to the Treasury. The extra tax revenue collected will be much more than the Rm130 million to be spent on the proposed public funding of political parties. And assuming that it costs Rm 50 million a year to maintain the proposed new commission to implement the proposed law on political financing, it’s also a small price to pay for the sake of making our democracy take its place in the international community with honour and dignity with our people feeling proud of their country.
Therefore, we G25 call upon the government not to make the extra costs to the Federal Treasury as an issue in implementing the proposals regarding public funding for political parties and the creation of a new independent commission to enforce the regulatory controls over the giving and receiving of political donations.
We also want to make a plea to the government that after the AG Chambers has drafted the bill on political funding, it should be submitted for review at a special parliamentary committee meeting, with the APPG members and civil society representatives in attendance, so that it can be debated whether the AG’s draft meets the expectations for reform of political donations. An indication of government willingness to be open in its drafting of laws will further strengthen public and business confidence in, as well as international respect for our parliamentary democracy.
G25 Malaysia
* This is the personal opinion of the writer or organisation and does not necessarily represent the views of Malay Mail.
