Kuala lumpur: About 80 percent of the proposed Majlis Amanah Rakyat (MARA) Bill 2026, to be tabled in Parliament before the end of the year, concentrates on corporate governance to fortify the institution's structure and management, revealed MARA chairman Datuk Dr Asyraf Wajdi Dusuki. In a Facebook post, he stated that the initiative aims to prevent further instances of power abuse, governance weaknesses, misappropriation, irregularities, leakages, and waste, as well as risks that could severely impact the institution responsible for safeguarding the interests of Malays and Bumiputeras.
According to BERNAMA News Agency, a significant provision of the Bill, approved in principle by the Cabinet, involves reducing the powers of the MARA chairman to chairing the Board or Council and focusing on policy decisions, compared to the current powers under the MARA Act 1966. The Bill also proposes a separation of powers between the Board and MARA management, introduces 'fit and proper' criteria for Board members, and limits their terms of service. Financial governance and procurement practices will be tightened to ensure compliance with national and international standards.
Asyraf Wajdi explained that the draft Bill would establish several mandatory Board committees, such as the MARA Audit, Investment, Finance and Governance, and Risk committees. Additionally, the Bill will introduce a Syariah Committee for the first time to ensure all MARA operations comply with Syariah principles. The draft Bill includes several other essential provisions on good governance not explicitly covered under the MARA Act 1966.
He noted that the new Bill represents the culmination of governance reforms initiated since his appointment as MARA chairman on March 10, 2023. These reforms were spearheaded by a special task force led by former Bank Negara Malaysia governor Tan Sri Muhammad Ibrahim. Measures included enhancing financial discipline across MARA, conducting forensic audits of its subsidiaries, centralizing internal audit functions for MARA and MARA Corp, and restructuring the procurement division.
Additional measures involved establishing a reporting system and introducing monthly financial performance reports for management to the MARA Council, aligning with international standards. On June 14, Asyraf Wajdi stated that the amendments to the MARA Act 1966 would ensure the new legislation is more relevant and better equipped to bolster the agency's role in advancing the Bumiputera development agenda.