Foreign funding is not foreign control — Ivy Josiah

SEPT 18 — In May 2026, attacks against Mandiri, a non-governmental organisation or NGO, surfaced online alleging that the organisation had received foreign funding to conduct political and disinformation activities with the alleged objective of destabilising the administration and ultimately bringing down Prime Minister Anwar Ibrahim. 

Last week, further measures were taken against Mandiri and Hayat, another NGO; freezing the personal and organisational bank accounts of Mandiri directors Amir Hadi and Dobby Chew, as well as travel restrictions placed on both. 

If an NGO receives foreign funding, does that make it a foreign agent? If it advocates democracy, does that mean it wants to overthrow the government? And if it criticises those in power, is it automatically working against Malaysia?

These questions are worth asking because, in Malaysia, the accusation that civil society organisations are receiving foreign funds to "topple the government" has become a familiar political refrain.

But an accusation is not evidence. And receiving an international grant is not, by itself, evidence of a conspiracy against the state. It is time we had a more mature conversation about foreign funding, civil society and democracy.

Foreign funding is not synonymous with foreign control

Malaysian NGOs receive funding for many legitimate purposes: women's rights, children's rights, civil and political rights, environmental protection, freedom of expression, community development, democratic participation, research, legal education and civic empowerment.

Some funding comes from Malaysian donors (including the government). Some come from foundations outside Malaysia,  through international democracy and human rights programmes and funds connected to the United Nations and other multilateral institutions.

Just as this government receives foreign aid, a grant to an NGO  does not suddenly turn the organisation into an agent of a foreign government. 

A grant supporting civic education does not mean the recipient has been instructed to overthrow a government. The proper question is much simpler. What was the money given for, and what was it actually used for?

The author argues that foreign funding should invite scrutiny over how money is used, not automatic assumptions that an NGO is serving foreign interests. — Unsplash pic

Look at what Malaysian NGOs actually do

The easiest way to test the allegation that foreign-funded NGOs exist to "topple governments" is to examine their actual work. 

Our work may sometimes challenge government policy. It may sometimes challenge religious authorities. It may sometimes challenge laws or interpretations of laws. 

But challenging a policy is not the same thing as seeking to overthrow the state. These activities can be uncomfortable for those in power but democracy is supposed to accommodate uncomfortable questions.

In a parliamentary democracy, the government must be open to scrutiny. Indeed, Parliament's own description of its functions includes examining government policies and serving as a forum for matters of public interest. 

If Parliament is expected to scrutinise the Executive, why should citizens and civil society be prohibited from doing so? 

Malaysia already has laws governing organisations

Organisations in Malaysia do not operate in a legal vacuum. NGOs registered under the Societies Act 1966 are subject to the regulatory framework administered by the Registrar of Societies. 

The Registrar's own guidance states that an association may have an affiliation with an organisation or country outside Malaysia, provided this is consistent with its constitution, and requires such affiliations to be declared in the association's annual statement.

Other NGOs operate under different legal structures. For example, some are companies, including companies limited by guarantee, and are subject to the Companies Act 2016 and reporting requirements administered by the Companies Commission of Malaysia. 

These NGOs  are required by law to submit their annual audited reports. There are also tax obligations. The Inland Revenue Board has specifically addressed the tax treatment of donations and contributions received by institutions, organisations and funds, including non-profit bodies. 

Organisations that do not qualify for specific tax exemption remain subject to applicable tax and filing requirements.

So if there is evidence that a particular organisation has committed an offence, misused funds or violated regulatory requirements, that evidence should be investigated through the appropriate legal channels. 

There is nothing unreasonable about asking NGOs to be transparent about their funding. 

In fact, civil society organisations welcome scrutiny. Where funding comes from, what the grant is intended to support, what activities are undertaken, and how expenditure is accounted for are legitimate questions.

Funders themselves normally impose strict reporting requirements. Depending on the grant, organisations may have to submit budgets, financial reports, narrative reports, supporting documentation and evidence of programme activities. 

Some grants may be subject to independent audits or other forms of financial review.

NGOs are not foreign puppets

The suggestion that an NGO automatically becomes a foreign instrument simply because it receives an international grant also underestimates Malaysian civil society. 

Malaysian NGOs are made up of Malaysians. We work with Malaysian communities. We understand Malaysian social and political realities and our campaigns are shaped by issues we encounter on the ground. 

NGOs ultimately answer to their own governance structures, their members, their constituencies and their beneficiaries. 

The relationship between a donor and an NGO should therefore be understood as a relationship governed by agreed funding objectives — not as ownership of the NGO's political conscience.

A confident government should not fear an NGO and activists. A confident democracy should not fear criticism. And a confident country should be able to distinguish between foreign interference and foreign funding. 

* Ivy Josiah is a women's rights advocate.

** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.