Mara Act 2026 to Strengthen Financial Management and RM23 Billion in Assets

The upcoming Mara Act 2026 is set to significantly strengthen the management, governance, and financial oversight of Majlis Amanah Rakyat (Mara), an agency responsible for assets valued at RM23 billion. The proposed legislation aims to modernize the framework, replacing the existing Mara Act of 1966 to better reflect the agency's current operational scope, scale, and complexities.

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The drafting of the Mara Act 2026 will streamline the management, governance, and financial management of Majlis Amanah Rakyat (Mara) involving RM23 billion in assets in line with the development of the agency's operations.

Datuk Dr. Asyraf Wajdi Dusuki, the Chairman of Mara, emphasized the importance of this legislative update, noting that Mara currently manages substantial assets and plays a critical role in education, entrepreneurship, and investment. He stated that efforts to improve Mara's governance began shortly after his appointment in March 2023. A special task force, headed by former Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim, was formed to identify and address weaknesses in corporate governance and financial management practices.

The proposed Act is a key initiative following various improvement measures. The need for enhanced governance is underscored by Mara's extensive reach, benefiting approximately 45,000 students in MRSM and nearly 225,000 students across its educational ecosystem. Furthermore, over 500,000 individuals rely on Mara's programs and services in the entrepreneurship sector. Asyraf Wajdi warned that any mismanagement, misappropriation, or governance failures could jeopardize Mara's trust and its mandate to the Malay and Bumiputera communities.

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The effort to improve Mara's governance aspects began since I was appointed as Mara Chairman on March 10, 2023, and since my appointment, I have established a Special Task Force aimed at examining weaknesses and strengthening Mara agency's corporate governance and financial management practices.

Past issues have drawn attention, including significant accumulated losses of RM286.30 million by Mara Inc from 2012 to 2022 due to asset acquisitions in Australia and the United Kingdom. The sponsorship of the Kelantan football team, The Red Warriors (TRW), in 2016 and 2017, along with losses from other Mara projects, were also cited. Weaknesses in loan recovery management and alleged cartel control over tender processes were identified as further problems. These identified weaknesses highlight the urgent need for comprehensive reforms to Mara's governance and management foundations.

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