20/01/2026

TUESDAY | JAN 20, 2026

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‘Urgent law needed to regulate online crowdfunding’

M’sia’s 2025 growth exceeds official forecast PETALING JAYA: Malaysia’s economy accelerated in the final quarter of 2025, growing 5.7% and lifting full-year growth to 4.9% – surpassing the government’s official forecast of 4.0 to 4.8%, the Economy Ministry said. Minister Datuk Seri Akmal Nasrullah Mohd Nasir said the surge in activity in the last three months of 2025 reflected robust domestic demand and expansion in the services and manufacturing sectors, despite global uncertainties. He highlighted the role of targeted cash assistance programmes, including the Rahmah cash contribution (STR) and the Rahmah basic contribution (Sara), in bolstering household spending and sustaining consumption amid ongoing economic pressures. “This achievement proves the effectiveness of the Madani economy’s direction and strategies in navigating global uncertainties, restructuring the economy and sustaining resilient domestic demand,” Akmal said. “The successful implementation of over 170 socio-economic development initiatives under the 12th Malaysia Plan (RMKe-12) has also contributed to this outcome.” Akmal said preliminary estimates indicate that average annual growth between 2021 and 2025 reached 5.2%, exceeding projections set out in the 13th Malaysia Plan (13MP). “This represents positive momentum and reflects that Malaysia’s economic fundamentals remain strong and competitive. The year 2026 marks the start of the 13MP implementation phase, and the Economy Ministry is committed to ensuring that every initiative delivers tangible outcomes felt by the public.” The government expressed confidence that Malaysia remains on track to achieve the Madani economy’s goals, including attaining high-income nation status by 2030. – By Faiz Ruzman

o Outdated fundraising laws leave loopholes that enable misuse of public donations, hamper oversight and accountability on digital platforms: Experts

Raymon said online donation solicitations must be recognised as a regulated activity and supported by mandatory registration or prior approval. – ADAM AMIR

Ű BY HARITH KAMAL newsdesk@thesundaily.com

specific online fundraising, including how funds are ring-fenced, monitored or accounted for during and after campaigns. “This leaves enforcement agencies operating reactively, often intervening only after funds have been misused – an approach that is neither efficient nor adequate to protect public generosity,” he said, stressing the need for a preventive regulatory model. “Online donation solicitations must be explicitly recognised as a regulated activity, supported by mandatory registration or prior approval.” He said crowdfunding platforms themselves must also be held accountable. “Platforms should be licensed and subject to clear obligations to conduct due diligence, verify claims, safeguard funds and ensure transparency through proper disclosures and audit trails,” Raymon said. The absence of a dedicated Charities Act further weakens oversight, he said, pointing out that Malaysia’s charitable sector is governed by a fragmented framework involving the Societies Act 1966, Trustees (Incorporation) Act 1952, Companies Act 2016 and outdated fundraising laws. “Unlike in jurisdictions such as Singapore and the United Kingdom, Malaysia does not have a single charity regulator with the mandate to controls for housing, relocation and other allowances, as well as visa costs.” He warned that raising salary benchmarks could place additional financial pressure on firms that genuinely need specialised expertise. Universiti Malaysia Kelantan human resource expert Prof Dr Balakrishnan Parasuraman said local professionals should receive competitive pay if they possess skills comparable with expatriates. “If expatriates are paid more simply because they are foreigners, while locals with similar expertise are paid less, Malaysian professionals will continue to migrate overseas.” He added that expatriates should only be hired for critical roles where local expertise is unavailable and employers should avoid creating pay disparities that disadvantage Malaysians. “Local experts must be paid equivalently to expatriates if they carry the same responsibilities, especially with the rising cost of living among professionals these days. Otherwise, we will lose our talent to countries like Dubai and Singapore.”

PETALING JAYA: Malaysia urgently needs a dedicated legal framework to regulate donation-based online crowdfunding, said experts, as outdated laws leave loopholes that allow the misuse of public donations on digital platforms. The call comes in the wake of remarks by Malaysian Anti Corruption Commission Chief Commissioner Tan Sri Azam Baki, who told a Malay daily last week that the absence of specific crowdfunding legislation has enabled unscrupulous parties to exploit public generosity, particularly via social media. Transparency International Malaysia (TI-M) president Raymon Ram said Malaysia currently has no law specifically governing donation based online crowdfunding, leaving enforcement agencies struggling to act proactively. “Existing legislation, such as the House-to-House and Street Collections Act 1947, was designed for physical fundraising and does not cover digital platforms. “As a result, individuals, influencers or loosely organised groups can solicit public donations online without prior approval, licensing or real-time oversight.” Raymon added that while registered NGOs must comply with annual reporting requirements under the Registrar of Societies, there are no PETALING JAYA: The new expatriate employment policy, which sets higher minimum salary thresholds for foreign professionals, could trigger a rise in wage expectations among local workers, human resources experts warn, even as employers continue to base salaries on productivity, experience and business needs. Association of Employment Agencies Malaysia president Datuk Foo Yong Hooi said the move may create a “domino effect” on how local employees perceive their own pay. “When expatriates are paid higher minimum salaries, local workers will naturally ask why they cannot earn the same.” He, however, said Malaysian companies only hire expatriates when necessary and generally prioritise local talent to manage costs. “If companies can find suitable local talent, they will hire locals. No business will bring in expatriates without strong justification. Accommodating expatriates involves

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conducted through recognised online platforms, rather than informal or ad hoc methods such as direct messaging. “An online platform – whether a website, social media page or application – provides the necessary infrastructure for accountability and governance.” Such platforms, he added, allow for minimum regulatory or self regulatory mechanisms, including disclosure of fundraising purposes, organiser identity and beneficiaries, as well as clear terms and conditions and transparent payment systems. “They also enable proper record keeping for fund traceability, personal data protection safeguards and accessible channels for inquiries or complaints.”

license public fundraising, monitor donation flows or intervene early to prevent abuse. “Malaysians are generous by nature. That generosity must be protected by law, not exploited by regulatory gaps,” he said. From a digital law perspective, International Islamic University Malaysia deputy legal adviser Assoc Prof Dr Sonny Zulhuda said donation-based crowdfunding must be conducted ethically, transparently and accountably. “There is a legitimate expectation from funders that donated funds will be channelled strictly towards their stated purposes and not abused or misused.” Sonny said crowdfunding initiatives should preferably be He said multinational companies relying on expatriates and local workers to maintain operational standards and wage imbalances could affect long-term talent retention. Separately, the Malaysian Employers Federation (MEF) cautioned that Malaysia is not yet ready to replace expatriates entirely in senior or highly specialised roles without affecting productivity. MEF president Datuk Dr Syed Hussain Syed Husman said the country is “not yet fully prepared to replace expatriates in senior and highly specialised roles without some short to medium-term impact on productivity and service quality”. “The main challenge lies in the depth of experience required for niche positions. In senior and frontier areas such as advanced engineering, digital transformation, specialised finance, energy transition and high end manufacturing, the local talent pipeline remains uneven and insufficient in scale,” he said, adding that many expatriates currently hold positions requiring extensive regional and sector-specific exposure.

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com New expat policy sparks wage concerns

PAS sets religious terms for ‘coalition’ PETALING JAYA: PAS president Abdul Hadi Awang has signalled cautious openness to joining a “grand coalition”, but stressed that any partnership must adhere strictly to Islamic principles. The remarks follow reports that Umno plans to convene top leaders from Malay and Islamic parties to explore a “grand collaboration”, while maintaining the current Unity government. wrongdoing or compromising principles are like a leaking ship. “Even if branded as a ‘grand coalition’, it will eventually collapse.” He cited historical examples such as the Charter of Medina and the leadership of Prophet Muhammad as models for principled unity – guided by justice, piety and mutual respect rather than political convenience.

Hadi emphasised that any coalition must prioritise Islamic values and good governance. He criticised pluralistic or liberal alliances that tolerate extremism or wrongdoing, suggesting such arrangements are inherently unstable. “PAS supports unity under principled leadership, where justice and piety are central, not alliances built solely on political convenience or compromise.” Bersatu, meanwhile, said it would consider Zahid’s proposal once more details are provided. Its president Tan Sri Muhyiddin Yassin said the party remains open to the idea of uniting the Malay community across political parties and Malay-based NGOs but has not authorised any official negotiations with Umno. – By Harith Kamal

Umno President and Barisan Nasional Chairman Datuk Seri Dr Ahmad Zahid Hamidi confirmed that no formal agreements or conditions have yet been set for the initiative. In a statement on PAS’ vision for national unity, Hadi said true unity must be grounded in Islamic teachings, not shaped by political expediency or human-made agreements. “Unity in Islam is about helping one another in righteousness and piety, not in wrongdoing or injustice.” He said Islam had successfully united the once-divided Arab tribes through faith, cooperation and adherence to divine guidance. Hadi cautioned against “unity at any cost”, warning that coalitions ignoring