Study Reveals Weaknesses in Malaysia’s Public Fundraising Laws and Calls for New Commission

A team of ten scholars at Universiti Sains Islam Malaysia examined the ten statutes that currently govern public fundraising in Malaysia and concluded that the framework leaves room for misconduct and fund abuse. Four of the laws date back to before independence and are considered obsolete, while newer acts such as the Societies Act 1966 and the AML/CTF Act 2001 are too broad to cover the entire fundraising ecosystem. The researchers argue that a dedicated Public Funding Commission, created by a specific act, should consolidate regulatory functions, issue integrity guidelines, and enforce compliance.

They also recommend a separate Charities Act, tiered classification of fundraising entities, licensing for platforms, regular professional audits, and real-time public disclosure of donations and expenses. The study stresses that stronger governance is essential for transparency, accountability, and public trust in charitable and crowdfunding activities.