Malaysia proposes Mara Act 2026 to strengthen financial governance

Malaysia's Majlis Amanah Rakyat (Mara) is poised to overhaul its financial governance and management with the proposed Mara Act 2026. This new legislation will replace the outdated Mara Act 1966, aiming to align the agency's legal framework with its current operational scale and complexity.

Mara Chairman Datuk Dr. Asyraf Wajdi Dusuki highlighted the urgency of this reform, noting that Mara manages approximately RM23 billion in assets. The agency plays a crucial role in supporting the Malay and Bumiputera communities through education, entrepreneurship, and investment initiatives. "Any leakage, misappropriation, or management weakness can affect the implementation of Mara's trust and its mandate to the Malay and Bumiputera community," he stated.

Efforts to improve Mara's governance began in March 2023 with the establishment of a special task force, led by former Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim. This team was formed to address various feedback concerning past governance issues and weaknesses within the agency. The proposed Act 2026 is a key outcome of these extensive improvement efforts.

The need for stronger oversight is evident, as Mara currently benefits around 45,000 students in its MRSM schools and nearly 225,000 students across its entire educational ecosystem. Furthermore, over 500,000 beneficiaries rely on Mara's entrepreneurship programs and services.

Past issues that prompted these reforms include significant financial losses from overseas asset acquisitions in Australia and the United Kingdom between 2012 and 2014, resulting in a cumulative loss of RM286.30 million for Mara Inc. Other identified weaknesses involve the sponsorship of the Kelantan football team, The Red Warriors (TRW), in 2016 and 2017, as well as problems with loan repayment collection and alleged cartel control over procurement tender processes. These issues underscore the necessity for a comprehensive renewal of Mara's governance foundation.

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Any leakage, misappropriation, or management weakness can affect the implementation of Mara's trust and its mandate to the Malay and Bumiputera community.