A Comparative Analysis of Charitable Organisation Regulation: Lessons for Malaysia from the United Kingdom and Singapore

Abstract

The article is a comparative legal analysis of laws that are used to regulate charitable organisations in Malaysia, the United Kingdom and Singapore. The success and social trustworthiness of the charitable sector depend on strong governance and open control. Nevertheless, the current state of regulation in Malaysia is typified by a multi-agency system that lacks centralised authority, which poses serious issues to accountability and consistency. Conversely, the United Kingdom (UK) and Singapore have also established well-established, centralised paradigms of regulation, based on the UK model of an independent Charity Commission and those of the Singapore Commissioner of Charities, which works in partnership with others. The paper will examine the primary legislation, regulatory framework, and governance mechanisms in each jurisdiction to identify the strengths and weaknesses in each. Through the analysis, the centralised, transparent, and proactive strategies which the UK and Singapore have applied can be used as lessons in reform. The article then presents a set of evidence-based recommendations to the Malaysian government, based on the assertion that enacting a unified Charities Act and establishing an independent, statutory Charity Commission would improve governance and unleash the potential of the Malaysian charitable sector.