Proposed fundraising law must not stifle legitimate CSOs, says think tank

2026-03-25 - 09:21

MACC has called for the enactment of three new laws, including a welfare-related Act, aimed at preventing the misuse of donations collected by NGOs. PETALING JAYA: Any proposed legislation to regulate public fundraising must not impose disproportionate burdens on legitimate civil society organisations (CSOs), a think tank says. The Institute for Democracy and Economic Affairs (IDEAS) said while transparency and accountability in the management of public donations are necessary, any new framework must be carefully considered to avoid imposing unnecessary constraints on CSOs. “Regulatory measures must be clear, proportionate and applied consistently to prevent unintended constraints on civic participation,” it said in a statement. IDEAS said regulatory reforms affecting civil society, governance and public finance will have a direct impact on the broader policy ecosystem in Malaysia. “Strengthening oversight must not come at the expense of an open and enabling environment for civic engagement,” it said. The Malaysian Anti-Corruption Commission had called for the enactment of three new laws, including a welfare-related Act aimed at preventing the misuse of donations collected by NGOs. The other proposed laws are a public office misconduct Act, which would make misappropriation of public funds and negligence by government officials criminal offences, as well as a political financing law. IDEAS said inclusive consultation with stakeholders, including CSOs, legal practitioners and policymakers, is essential in any process of enacting new laws. “The public cannot be kept in the dark regarding laws that will impact them directly or indirectly,” it said. The think tank also said Malaysia already has an extensive legal framework addressing corruption and abuse of power. “The introduction of additional legislation must therefore go beyond expanding regulatory scope, and focus instead on strengthening institutional coherence, consistency in enforcement, and public trust. “Any expansion of anti-corruption laws must be matched by equally strong safeguards to ensure that accountability is applied consistently across political actors, public institutions, and non-state actors,” it said. Several lawyers have shot down MACC’s call for new legislation to address misconduct in public office and the misuse of funds by NGOs, arguing that it would drain valuable resources.