In a statement, it said that any political funding law must clearly state that no foreign funding is allowed.

“Foreign funding for local political parties and politicians is illegal in many countries,” it said in response to law and institutional reform minister Azalina Othman Said, who said last week there was an urgent need for a strong political funding law in Malaysia to address regulatory gaps that heighten corruption risks.

Azalina said while political parties predominantly rely on membership fees, donations, asset ownership, and business ventures for funding, some outfits might exploit funding needs to secure undue influence, expecting kickbacks or preferential treatment in return.

A similar call to ban foreign funding for political parties was made three years ago by the All-Party Parliamentary Group Malaysia (APPGM).

In 2022, APPGM proposed a political funding act to prohibit foreign donations and funding from government-linked agencies or organisations with conflicts of interest.

Its then chairman, Ahmad Fadhli Saari, said loopholes in existing regulations had enabled politicians to accept funds from both local and foreign sources.

G25 also said that people would be more encouraged to donate to political parties and election candidates if these politicians were held accountable for funds raised from the public.

It said there was currently a great deal of scepticism about politicians raising funds.

“If there is a law to regulate political funding, more individuals, institutions, and corporate organisations will be willing to offer political funding,” the group said, adding that a specific law would also protect the public from scams.