Kuala Lumpur, 15 November 2023: The Institute for Democracy and Economic Affairs (IDEAS) urges the government to codify the allocation of constituency development funds (CDF) to stabilise politics in Malaysia as well as to level the playing field between government and opposition Members of Parliament (MPs).

“In light of the recent developments regarding the transfer of support of four Perikatan Nasional MPs to the Prime Minister, we are increasingly concerned that unequal allocation of CDF between government and opposition MPs is and will continue to be a contributing factor to instability in our political system. For economic and investment confidence, a stable political system is necessary,” said Dr Tricia Yeoh, CEO of IDEAS.

Malaysia needs a legislation that codifies the transparent, equitable and accountable distribution of CDF to all MPs regardless of political parties. IDEAS has been working closely with our partner Bersih to engage and obtain buy-in from political parties at the state level on how an improved CDF allocation should look like. Some of our proposals include codifying a formula that would ensure equitable distribution as well as reporting and disclosure requirements on all elected representatives to ensure transparency and accountability in the usage of the funds.

“One immediate possibility of ensuring equal CDFs to all elected representatives regardless of political affiliation is to initiate and sign a Memorandum of Understanding which contains this requirement – alongside other reform commitments – between the government and opposition, similar to what has previously been signed under former Prime Minister Ismail Sabri in September 2021. Political stability can only be ensured when politicians on both sides of the divide are treated fairly and held to the same standards of accountability. Malaysia cannot afford further instability in our politics, thus it is urgent that this government adopts a framework for CDF that will bind all future governments, regardless of party affiliations.” concludes Dr Yeoh.

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Aira Azhari
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