Progressive think tank Research for Social Advancement (REFSA) has called for a fundamental overhaul of how Malaysia’s national budget is reviewed, urging the government to empower parliamentary select committees to ensure greater fiscal transparency.
In its latest policy brief, “Utilising Dewan Rakyat Committees for Better Budget Scrutiny,” REFSA argues that the current “Committee of the Whole House” system is insufficient, often leading to budget debates that lack depth and evidence-based examination.
While Malaysia follows the Westminster parliamentary model, REFSA author Maha Balakrishnan points out that the country has lagged behind peers like the UK, Canada, Australia, and New Zealand. In those nations, select committees have the power to call witnesses, request executive documents, and consult experts before the budget is finalised.
Currently, Malaysian MPs deliberate on massive expenditure plans under strict time constraints without the investigatory powers afforded to specialized committees.
“Malaysia’s Parliament has significant constitutional authority over public finances, but existing procedures do not fully enable MPs to exercise these powers effectively,” Balakrishnan stated.
To bridge this gap, REFSA has proposed two structural changes to the legislative calendar: First the Formal Pre-Budget Review: The government should formally present its Pre-Budget Statement to the Dewan Rakyat for committee review. This would allow MPs to provide feedback on fiscal priorities before the final Supply Bill is drafted.
Second mandatory Committee Estimates Review: Select committees should be tasked with reviewing the government’s expenditure estimates and the Supply Bill before the final parliamentary vote.
A key concern in parliamentary systems is the “mandate of confidence”—where a budget defeat can trigger the fall of a government. REFSA clarifies that these reforms would not jeopardise the Executive’s mandate, as select committee recommendations are advisory in nature.
Instead, the process acts as a “stress test” for policy, allowing the government to refine proposals based on expert input and stakeholder consultation before the final vote.
By moving toward a more participatory approach, REFSA believes Malaysia can reduce the “information asymmetry” that currently exists between the powerful Executive branch and the Parliament.
“Strengthening the role of select committees can improve transparency, encourage evidence-based policymaking, and enhance accountability in public spending,” the think tank concluded.
As Malaysia navigates complex economic shifts in 2026, the call for a more rigorous check on the “national wallet” adds a new dimension to the ongoing debate over institutional reforms.
