The G25 group of prominent retired civil servants has called for a ban on foreign funding for political parties.
PETALING JAYA: A political analyst and an NGO advocating for institutional reforms have expressed support for a ban on foreign funding for local parties, arguing that such arrangements normally come with conditions which may compromise national interests.
Earlier this week, the G25 group of prominent retired civil servants proposed the ban — already in place in several countries, including the US — to curb external influences on domestic politics and protect national interests.
Azmi Hassan of Akademi Nusantara said there are presently no restrictions on foreign entities funding political parties. He said they often do so on the pretext of promoting democracy or supporting party activities.
“Typically, when a political party receives financial support, it becomes beholden to the donor’s agenda. This is precisely why foreign political funding should be banned outright,” he told FMT.
Azmi said that whenever a foreign entity makes a donation, it exacts a subtle or implicit influence on the recipient.
Azmi Hassan.
“This raises serious concerns because the agendas of foreign donors and the local political parties are typically misaligned,” he said.
Azmi cited as an example recent reports of billionaire Elon Musk negotiating a potential donation to Nigel Farage’s Reform UK party. Critics expressed concern that such donations would give rise to foreign influence in UK politics and undermine the integrity of Britain’s political processes.
The G25 call came after law and institutional reform minister Azalina Othman Said voiced an urgent need for comprehensive legislation on political financing. She said the measure was necessary to close existing regulatory gaps that expose the country to corrupt practices, outside influences and demands for preferential treatment.
Preserve sovereignty
Thomas Fann, a spokesman for NGO Projek Sama, stressed the importance of prohibiting foreign financing of political parties to protect Malaysia’s sovereignty.
He said all political parties could potentially be in government, and in that capacity would become custodians of the nation’s wealth and resources.
“Foreign funding of parties is not without strings attached. We should not allow those who vie for power to be influenced by a foreign power,” he said.
He highlighted how the absence of a political financing law had allowed former prime minister Najib Razak to claim that the sum of RM2.6 billion which entered his account was donated by the Saudi royal family and thus, above board.
Fann said exceptions could be made to allow foreign funding in limited circumstances, such as to finance training and capacity building, provided they do not come without conditions that compromise national security and interests.
Regulate funding from public sources
Fann said any political funding law should also regulate funding from public sources such as government-linked companies, large corporations and wealthy individuals.
Thomas Fann.
Azmi said the proposed law must ensure transparency as to the identity of the donor and the sum contributed. It must also place limits on how much each corporate and individual donor is allowed to contribute.
Fann said Malaysia could also consider introducing public funding based on the percentage of vote shares obtained by political parties at general elections, as is practised in Germany, Sweden, France, Brazil, Argentina and Mexico.
Such a system aims to provide financial support to political parties in a way that reflects their electoral success, promoting a more equitable political landscape.
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