Kuala Lumpur, 17 July 2023 – The Institute for Democracy and Economic Affairs (IDEAS) commends YB Anthony Loke, DAP’s Secretary General and Minister of Transport for his support to institutionalise the allocation of constituency development funds (CDF). IDEAS also noted that there have been calls by different political parties from both sides of the aisle to ensure that the CDF is allocated equitably. 

The current pain points that have been identified by different parties include the centralisation of power to the Executive in deciding the allocation of CDF, the weaponisation of CDF against opposition parties by incumbent government, and the opacity of disbursement and utilisation of the CDF at the constituency. 

In March 2021, IDEAS and Bersih co-published a policy paper titled “Removal or Reform: Charting the Way Forward for Malaysia’s Constituency Development Funds”. The paper stated that the immediate goal should be creating transparent Constituency Development Funds (CDFs) that are distributed equitably and with accountability among MPs. Among the recommendations which we pushed for included:

• To make CDF disbursement equitable. If different allocations are to be given to the MPs, the government should disclose the distribution formula and the exact amount to be allocated to each MP;    
• To disclose the total amounts allocated for these purposes at the start of the budget year; 
• To name the allocation properly in relevant government documents, especially in the publicly available budget documents such as the “Anggaran Perbelanjaan Kerajaan Persekutuan.”  If sources for the allocations come from the budget of several ministries, the sources should be stated clearly;
• To create a platform that facilitates close coordination between agencies responsible for federal and state CDF disbursement. This will include the Implementation Coordination Unit (ICU) at the federal level and Pejabat Daerah at the state level, and;
• To require all MPs to publicly report their usage of their respective allocations

In the next few years, at the state level, IDEAS in collaboration with BERSIH and other civil society organisations (CSOs) are looking to engage closely with state governments to push for a state enactment that would ensure equity and transparency in the allocation of CDF at the state level. Together, we have drafted a CDF Bill which we will use as a basis for discussion with stakeholders across different states. 

Some of the recommendations in the CDF Bill that we are proposing include an equitable allocation of funds to all constituencies across party lines, agreed formula for allocation, as well as built-in checks and balances. Disbursement and use of the funding will be required to be published and open for public scrutiny.  We will be engaging politicians and the public in the next few months and are looking forward to receiving inputs to make a feasible legislation for CDF. 

Ultimately, there needs to be willingness on the part of the federal and state governments to institutionalise equitable and transparent allocations for all representatives. There is no better time to carry out these changes.

— END —

Download Media Statement PDF File Here

For enquiries, please contact:
Aira Azhari
Senior Manager
Democracy and Governance Unit
T: +603 2070 8881/8882 | E: aira@ideas.org.my

Alissa Rode
Manager
Public Finance Unit
T: +603 2070 8881/8882 | E: alissa@ideas.org.my