Kuala Lumpur, 22 April 2025: The Institute for Democracy and Economic Affairs (IDEAS) has today released its latest policy paper, Effective Reporting and Disclosure of Political Finance: Guidelines, Best Practices, Challenges, and Lessons for Malaysia, which advocates for a transparent political financing system and outlines ways to achieve it. The paper aims to address longstanding transparency deficits and the growing public distrust surrounding political donations in the country.

Co-authored by Dr Fernando Casal Bértoa, Associate Professor in the School of Politics and International Relations at the University of Nottingham (United Kingdom) and Sri Murniati Yusuf, former Senior Director of Research at IDEAS, the paper presents international norms, global practices of transparency, key elements to consider in regulating political finance transparency and highlights the importance of clear and enforceable for bookkeeping, reporting, and public disclosure. Drawing on global best practices from countries like the UK, Latvia, and Canada, the paper highlights that transparency in political finance not only fosters public trust but also reduces political corruption, strengthens democratic accountability and party institutionalisation.

The report points out that although political parties and candidates in Malaysia are required to submit financial reports to the Registrar of Societies and the Election Commission, these reports remain unpublished and lack meaningful inspection. The paper suggests that since the government plans to enact a political financing law, these limitations should be addressed in the new legislation.  

The paper recommends that for effective political finance reporting, government legislation should have the following elements. First, the legislation should require political parties and election candidates, at least, to keep records of all direct and indirect contributions received either from individuals or legal entities during the electoral campaign and outside it. Secondly, they should make clear the type of reporting, who should be making the reporting as well as when and how the reporting should take place. Finally, the legislation should make sure that financial reports are publicly available in “a coherent, comprehensive, and timely manner over an extended period of time” while striking a balance between a minimum level of disclosure and respect for the privacy concerns of individuals. Section 5 of the paper outlines different ways of meeting these requirements. 

“The paper responds to longstanding concerns that greater transparency could expose donors and opposition politicians to victimisation. By showcasing international examples of political finance disclosure that minimise such risks, it makes a compelling case that transparency, when properly designed, can actually serve as protection rather than a threat. It also emphasises the importance of an independent and capable regulator that engages consistently with stakeholders and enforces the rules fairly and impartially. I hope this publication serves as a valuable resource for policymakers working to build a practical and effective transparency framework for political finance in Malaysia,” said Aira Azhari, IDEAS CEO.

The publication is available for download on the IDEAS website.

Download the Media Statement PDF File Here

For enquiries, please contact:
Ryan Panicker
Assistant Manager, Advocacy and Events
T: 03 – 2070 8881/8882 | E: ryannesh@ideas.org.my