The reports cited five reasons for public funding, namely to curb the spending race in elections, reducing the influence of private funds, promoting a more level playing field among parties, shifting the focus away from fundraising to performing duties, and moderating partisan appeals.
The research report claimed that Malaysia is one of the most unregulated countries in the world for political financing, adding that there is a need for regulations on the issue.
Ooi Kok Hin, the author of the election report, noted that there had been multiple attempts by various civil societies and parliamentarians to enact the regulations but the relevant stakeholders always rejected the ideas, often for selfish reasons.
“These efforts have stalled despite many stakeholders’ discussions, memorandums, submissions, reports, and detailed proposals.
“The lack of progress is attributed in part due to disagreement on regulations pertaining to private funding. In particular, the requirement to disclose a donor’s identity is a controversial topic for politicians from both sides in Dewan Rakyat,” he said in an online forum today.
Ooi said the common objections towards public funding including wastage of public funds, involuntary contribution by taxpayers, and ineffectiveness in promoting equity among others.
He said the rising cost of election campaigns provided a means for rich donors, even foreign ones, to set the political, economic and social agendas for the country.
“If there is no provision of public funding, and there is no cap on a private donation, then the extra money will inevitably come from rich donors.
“The influence of the rich, and often anonymous even foreign donors, to set the political, economic and social agenda becomes even more disproportionate compared to the rest of the citizens,” the report said.
“Another motivation to introduce public funding of political parties is to level the playing field between the advantaged and disadvantaged groups, such as smaller parties or opposition parties, and female candidates.
Small parties and those not in power lacked access to resources and the ability to attract generous donors. For these parties, public funding could be a lifeline for their survival.
“It can also be a safeguard for any parties who may find themselves losing corporate and rich donors once they are out of power,” he said.
A panel member of the webinar, Anis Yusal Yusoff, the former deputy director of the national integrity centre, said there was a need to establish an independent committee to manage all types of funding received.
“The funding system will be more transparent with this committee,” he said.