Kuala Lumpur, 18 September 2024: The Institute for Democracy and Economic Affairs (IDEAS) is gravely concerned over the recent developments surrounding the Memorandum of Understanding (MoU) between the government and opposition. The MoU, which was meant to lay down the terms in which Constituency Development Funds (CDF) were to be distributed to the opposition MPs, has become a political negotiation tool that harms Malaysia’s democracy.

“We would first like to reiterate that CDF distribution should not be subject to negotiations of any sort. All MPs should receive equitable allocations, with the only condition being that they must be transparent with how the allocation is used. The best way to institutionalise this is through legislation, which IDEAS and Bersih have consistently pushed for. The opposition has also racialised this issue unnecessarily, when they could have used this opportunity to demand for a CDF Act to be tabled, which will bind all future governments and put to rest the utilisation of CDF as a political weapon,” comments Aira Azhari, Acting CEO of IDEAS.

“We also urge all parties to look beyond CDF allocations alone and call for longer term improvements to the status quo. First, a Political Financing Act must be tabled, with public funding of political parties as one of its key pillars. Second, there needs to be an in-depth discussion regarding the sustainability of the current CDF mechanism, and third, there must eventually be a move away from the current system to one where CDF is no longer distributed to elected representatives but to elected local councils. 

This will entail a comprehensive shift in how the electorate perceives their representatives, and a holistic change in how politics operates. For Malaysia’s multiparty democracy to truly mature and move beyond partisan battles, it is crucial that our politicians prioritise institutionalising reforms that will help to prevent the winner-takes-all culture that has paralysed our politics for decades,” adds Aira.

For a more detailed discussion about equitable CDF distribution and other longer term recommendations, please download here.

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Download 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