KUALA LUMPUR: The cabinet has agreed to establish a special committee to conduct a feasibility study on enacting the Charities Act and establish the Charities Commission.
Minister in Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said these are aimed at addressing the misuse of donations given to charitable organisations by individuals or companies.
"The study commenced on May 6 and is expected to be completed mid-September, this year.
"There are international models that will be used as references to help Malaysia adopt a new approach, such as the models in the United Kingdom, Singapore, New Zealand, and Australia, which have clear legal provisions for enforcement, regulation, and monitoring of charity-based trust entities," she said in the Dewan Negara today.
She was responding to a question from Datuk C. Sivaraj on the government's commitment to establish a commission for charities.
She said the government also hoped the bill would receive approval from the cabinet, the Dewan Rakyat and Dewan Negara.
At the same time, she said the mechanism to ensure transparent fund management will be determined based on the study's findings.
The government, she said, is also conducting a study in collaboration with Universiti Kebangsaan Malaysia (UKM), the International Islamic University of Malaysia (UIAM), the Bar Council, and other non-governmental organisations to ensure fairness.
"The study aims to identify the best approach, acknowledging past instances where public and investor funds were misused.
"We are concerned as despite checks by the police and the Malaysian Anti-Corruption Commission, there were concerns that funds might still be used for money laundering."