Kuala Lumpur, 12 December 2024: The All-Party Parliamentary Group on Political Financing (APPG) convened its 8th meeting today and resolved to broaden its scope of discussion to include additional critical areas for a better-functioning democracy and a fairer political competition. These new areas include:

• Improving the capacity of Parliament with a particular focus on the re-enactment of the Parliamentary Services Act
• Electoral campaign financing reforms, including necessary amendments to the Election Offences Act
• Strengthening asset declaration mechanisms
• Improving the regulatory framework for political parties

This expanded scope aligns with the APPG’s founding objective: to create a platform for MPs, Senators, civil society organisations (CSOs), and experts to engage in detailed discussions on enhancing the governance of political financing. Going forward, our focus will extend to the broader financing of Malaysia’s political system, addressing the structural reforms required to strengthen transparency and accountability. With this expanded scope, the APPG hopes to be a platform on which critical discussions involving the long-term maturity of our democracy can thrive.

The APPG has made significant progress in laying the groundwork for political financing reforms. Key milestones include:

• A Political Financing Bill that was drafted through consultation with MPs and constituencies in various states. This bill shows the public and stakeholders how political financing can be regulated to improve our democratic system. The bill provides key regulatory measures needed for a better political financing system including donation limits, public funding for political parties, and an independent regulator and oversight entity.
• Discussed the Bill with the Parliamentary Special Select Committee on Human Rights, Elections, and Institutional Reforms and presented it to YB Dato’ Seri Azalina Othman Said and YB M. Kulasegaran, Minister and Deputy Minister at the Prime Minister’s Department

• The Bill was submitted to the Legal Affairs Department (BHEUU). BHEUU is currently studying the Bill and comparing it with the draft or parameters that the government has.

The expansion of APPG’s scope highlights the need for a comprehensive approach to the financing of Malaysia’s political system. While progress has been made on the Political Financing Bill, it is critical for the government to deliver on its promises. Broader reforms, including campaign financing, constituency development funds, and asset declarations, are essential to rebuilding public trust in our political institutions. The APPG remains a vital platform for driving these reforms forward.

The APPG reaffirms its commitment to advocating for the enactment of the Political Financing Bill, as pledged by the government in the National Anti Corruption Strategy (NACS) 2024-2028. At the same time, we recognise the importance of pursuing parallel reforms in other key areas of reforming the political system. With this expanded scope, the APPG will continue to act as a necessary check and balance on the government, provide informed feedback on significant institutional reforms and maintain consistent pressure for the tabling of the long-overdue political financing legislation.

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For more information on the All-Party Parliamentary Group Malaysia (APPG) – Political Financing in Malaysia, please visit: bit.ly/APPGPolfin

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