Malaysia’s top anti-graft official has warned that the absence of clear laws governing online crowdfunding has opened the door to widespread abuse of public donations, as authorities probe alleged misuse linked to high-profile fundraising campaigns.
Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki said irresponsible actors were using social media to solicit money for religious and charitable purposes, but some funds were allegedly diverted for personal benefit, according to local media reports, including the New Straits Times and Yahoo News Malaysia.
He cited cases in which people collected donations purportedly to build a mosque, but the funds were instead channelled to family members, calling such incidents saddening.
Azam was responding to a media report that three well-known non-governmental organisations are being investigated for allegedly amassing wealth through online crowdfunding.
He said the lack of a dedicated regulatory framework for crowdfunding was a key constraint on enforcement, noting that fundraising often involves online payments and informal collection channels.
He said social media platforms had made fundraising easy and repeatable, with small individual contributions quickly adding up to large sums.
Azam added that appeals were also being circulated through private messaging services such as WhatsApp, including messages he had personally received.
Azam said the issue could not be addressed by enforcement alone and urged relevant agencies to step up joint monitoring to protect the public’s money.
He added that anyone seeking to raise funds from the public should obtain approval before collecting donations, arguing that clearer and more specific crowdfunding legislation is needed to safeguard trust.
Malaysia’s rapid shift to social-media-driven giving has outpaced regulation, leaving authorities to rely on broader anti-corruption and fraud tools rather than tailored rules for digital fundraising.
The ongoing probes could accelerate calls for licensing, disclosure requirements, and stronger platform accountability, but tougher controls may also raise compliance costs for legitimate charities that depend on fast online appeals.
