Political Party’s Election Expenditure up to RM5b?

 

The Institute for Democracy and Economic Affairs (IDEAS) found that during an election period in Malaysia, an established political party may spend as much as RM5 billion to support its candidates and campaigning cost. 

Newer parties typically spent about RM1 million during an election period, said IDEAS. The think tank said the financing of political parties and candidates in Malaysia remains “costly, opaque, and uneven”, with established parties benefitting from stronger fundraising networks than newer ones as well as underrepresented groups. 

Source: https://my.linkedin.com/company/ideasmalaysia 

The report, which drew on interviews with politicians, party officials and political finance experts, said established parties are generally able to absorb higher operating costs and access more diversified funding streams, including corporate donations, party-linked businesses and state-linked resources. The study also highlighted rising expenditure on media and digital campaigning, including the use of analytics, videographers and social media teams to shape online narratives ahead of elections. The report also raised concerns over weak transparency and oversight in political financing, noting that parties are not legally required to disclose sources of donations, membership fees or detailed audited accounts. 

The report warned that the high cost of politics risks entrenching incumbent parties and limiting democratic competition, particularly for women, youths, ethnic minorities and lower-income groups seeking political participation. 

It also highlighted how rising financial demands increasingly shape candidate selection and internal party hierarchies, with those with access to financial resources find easier paths for political advancement. The opacity surrounding political financing, creates risks of undue influence, as donors and financiers may gain leverage over political parties and policymaking without public scrutiny. 

IDEAS also noted that some political financing practices blur the line between party and state resources, particularly when government-linked entities, welfare allocations or constituency-related programmes are used for political mobilisation. 

IDEAS called for the immediate enactment of a Political Financing Act to improve transparency and introduce clearer rules governing political donations and expenditure. 

This is not unique problem to Malaysia. The U.S. is a prime example now of how money can drive elections and “transparent” corruption is acceptable.  We can’t follow the U.S. model – it is headed for failure. We need to have the moral compass – “true North” – to frame how political funding can be regulated. Why can’t we have a pool of funds and a regulator that gives to a party according to number of members registered. 

Reference:

Established political party's election expenditure up to RM5b, IDEAS paper finds, Emir Zainul, theedgemalaysia.com, 7 May 2026