Ban foreign funds in proposed political financing law - G25

Summary

• G25 advocates prohibiting foreign funding in the proposed Political Financing Act, citing risks to Malaysia’s national interests and political independence.

• The group emphasises that transparency in political financing will encourage public and corporate donations while ensuring fair competition among political parties.

G25, a group of prominent Malaysian professionals advocating good governance, has called for a prohibition on foreign funding for political parties in Malaysia under the proposed Political Financing Act.

The group argues that such a measure is vital to safeguarding the nation’s political independence and protecting its national interests.

“The law should make it clear that no foreign funding is allowed. This is important to protect foreign influence on our political activities as it can be dangerous to our national interests.

“Indeed, foreign funding for local political parties and politicians is made illegal in many countries,” G25 said in a statement.

The group welcomed discussions about introducing a legislative framework for political financing, emphasising the need for transparency and accountability in how parties collect donations.

According to G25, the proposed legislation would create a level playing field for major and minor political parties and reduce scepticism from the public about the misuse of funds.

“A law will also provide comfort to the public that rival political parties are given equal opportunities to campaign for funds. It will protect the public from scams and irresponsible groups trying to go for quick money,” the group added.

Open support for parties and candidates

G25 highlighted that transparency in political financing could encourage greater contributions from individuals and corporations.

It noted that in Western countries, wealthy individuals and companies openly support political parties and candidates, while in Malaysia, donations are often shrouded in secrecy due to fear of backlash.

“The public will be more encouraged to donate their spare cash to help political parties and election candidates if they see that politicians are made accountable for the funds they raise,” it added.

Calls for a Political Financing Act in Malaysia have been ongoing, particularly after high-profile scandals such as the 1MDB debacle exposed weaknesses in the country’s governance.

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