Kuala Lumpur, 7 May 2026: The Institute for Democracy and Economic Affairs (IDEAS) launched two policy papers today highlighting growing concerns over the rising cost of politics and the absence of clear caretaker government conventions in Malaysia.
The first paper, “How Costly are Political Parties? Exploring Political Expenses and Implications for Democracy”, written by Syazwan Zainal, Nursabrina Firdaus Aloysius, and Imamul Ariffin, finds that the financing of political parties and candidates in Malaysia remains costly, opaque, and uneven. Established parties benefit from fundraising networks, while newer parties and underrepresented
groups face significant financial barriers.
“While it is a fact that political parties around the world need money to operate effectively, Malaysia stands out as one of the very few countries that do not have regulations on political financing. However, it is important to remember that a Political Financing Act will not be the panacea in reducing the cost of politics. It will introduce transparency, donation limits and a public funding system that will help level the playing field between political parties”, said Syazwan Zainal, co-author of the paper and IDEAS Assistant Manager of Research.
The second paper, ”Guidance for Malaysia’s Caretaker Government: Lessons from Four Commonwealth Jurisdictions”, written by Chang Xi Wo, highlights the absence of a comprehensive and publicly accessible framework governing executive conduct during political transitions. Drawing on Commonwealth country practices, the paper calls for clear caretaker periods, restrictions on major policy decisions and appointments, and stronger safeguards against misuse of government resources during transitions.
“Given the increasing frequency of political transitions in Malaysia, a comprehensive set of caretaker government guidelines is needed to ensure fair electoral competition, accountability during transition periods, policy predictability, and continued public trust in democratic institutions. This is an important step for Malaysia’s evolving multi-party democracy, especially as post-election governing coalition negotiations and mid-term realignments might become more common,” said Chang Xi, author of the report.
IDEAS calls for urgent reforms, including the immediate enactment of a Political Financing Act, stronger disclosure and oversight mechanisms, and the publication of clear caretaker government guidelines.
“Fair competition and transparency are essential to a healthy democracy. Stronger political financing rules, alongside clear caretaker government guidelines, will reduce opportunities for abuse, improve accountability, and help level the political playing field. Together, these reforms strengthen trust in institutions and support better democratic outcomes. Malaysian democracy and governance would benefit profoundly from the institutional reforms we are advocating for,” said Aira Azhari, IDEAS CEO.
IDEAS also extends its appreciation to the Department of Foreign Affairs and Trade (DFAT) of Australia for its support of this research, which contributes to our ongoing efforts to strengthen democratic and institutional governance.
“DFAT is pleased to support IDEAS and its practical contribution to Malaysia’s democratic and institutional strengthening efforts, particularly as the country prepares for a general election. Australia values its partnership with Malaysia and through DFAT, is partnering with IDEAS through our new development bilateral program, the Australia-Malaysia Kerjasama Program (AMKP) to drive reforms towards Malaysia’s ambition of being a high-income country by 2030”, said H.E. Danielle Heinecke, Head of Mission of the Australian High Commission in Malaysia.
For more information, please download the full report Here
For enquiries, please contact:
Ryan Panicker
Manager, Advocacy and Events
ryannesh@ideas.org.my
+6017-2919087
