Proposed Political Financing Bill Must Feature Clear Penalties and Independent Regulator, Says MACC Official

KUALA LUMPUR, Sept 8 — The upcoming Political Financing Bill must establish clear penalties for political parties violating contribution limits or failing to disclose funding, while establishing an independent regulatory body to enforce compliance, according to the Malaysian Anti-Corruption Commission (MACC).

MACC National Governance Planning Division Deputy Director Mohd Gunawan Che Ab Aziz outlined five core governance principles that should shape the proposed legislation: transparency, accountability, equity and fairness, independence, and inclusiveness.

“Under the principle of accountability, there should be clear penalties for breaching contribution limits or failing to report funding, as well as, of course, a responsible regulatory body,” Mohd Gunawan said. “The regulatory body has yet to be decided. There have been suggestions that the role could be given to the Election Commission (EC), the MACC, or a newly established special commission.”

Speaking as a panellist at the Political Financing Reform Forum organized by the Legal Affairs Division (BHEUU) of the Prime Minister’s Department today, Mohd Gunawan explained that BHEUU will review all proposed regulatory structures before presenting a finalized framework to Parliament.

He stressed that under the principle of equity and fairness, enforcing contribution limits and conditional public funding is crucial to ensuring both small and large political parties compete on a transparent, level playing field. He added that any oversight body must operate independently of external interests and the ruling government to maintain public trust and effectively enforce the law.

To ensure broad inclusiveness, Mohd Gunawan urged lawmakers to engage civil society, political parties, and key stakeholders throughout the drafting process to craft comprehensive legislation without impeding democratic participation.

“We need to ensure that this does not restrict democracy itself, but instead helps to strengthen democratic participation in a democratic country,” he noted.

The proposed legislation aims to address critical gaps in existing statutory frameworks, including the Societies Act 1966 and the Election Offences Act 1954, thereby enhancing public trust in national governance and elevating Malaysia’s international standing.

–NMT