AN EMPIRICAL INVESTIGATION INTO NON-PROFIT GOVERNANCE PRACTICES IN MALAYSIA FROM THE PUBLIC PERSPECTIVE
DOI:
https://doi.org/10.33102/g9yct995Keywords:
Governance, Governance Indicators, Governance Mechanisms, Non-Profit Organisations (NPOs), Public PerspectiveAbstract
In the last five years, cases related to corruption, fraud, embezzlement, and abuse of power, especially in non-profit organisations (NPOs) in Malaysia, have risen sharply. It is believed that weak governance practices in NPOs have become the reasons why these cases happened. Therefore, this study was conducted to investigate the current governance practices in NPOs in Malaysia, especially from a public perspective. For this study, 1,000 public respondents across all 14 states in Malaysia were involved. For analysis, descriptive statistics were analysed using the Statistical Package for the Social Sciences (SPSS) version 31. The findings indicate that all 10 governance indicators were found to be weak in practice in NPOs in Malaysia. Additionally, political involvement/interference in NPOs was found to be the highest-rated governance indicator by the public contributing toward current weak governance practices in NPOs in Malaysia. Thus, this study is among the pioneering empirical studies on governance practices in NPOs, especially from a public perspective.
Downloads
References
Abdul Patah, F. M. (2024). Kes Aman Palestin: Tipu Dana Beli 131kg Emas, Wang Haram Beli Hartanah, Vellfire. Berita Harian, February 16. https://www.bharian.com.my/berita/nasional/2024/02/1213161/kes-aman-palestin-tipu-dana-beli-131kg-emas-wang-haram-beli-hartanah (Accessed on 3 June 2026).
Abiddin, N. Z., Ibrahim, I., & Abdul Aziz, S. A. (2022). Non-Governmental Organisations (NGOs) and Their Part Towards Sustainable Community Development. Sustainability, 14(8), 4386. https://doi.org/10.3390/su14084386
Al-Sharabi, N. M., Ismail, A. H., & Al-Hamdani, F. A. (2025). An Integrated Framework for Assessing the Effectiveness of Governance Mechanisms in Reducing Financial Fraud in Non-profit Organizations. European Journal of Accounting, Auditing and Finance Research, 13(1), 18–46. https://doi.org/10.37745/ejaafr.2013/vol13n11846
Ariffin, M. I., Mahadi, T. D. M. T., Pakair, S., & Zolkefle, D. F. F. (2025). Exploring the Fraud Triangle Model and Microeconomic Factors in Zakat Embezzlement. Journal of Islamic Accounting and Finance Research, 7(1), 21–38. https://doi.org/10.21580/jiafr.2025.7.1.23425
Asyraf, F. (2024). Firm Under Probe Over RM9.6m in Missing Zakat Collections. Free Malaysia Today, January 4. https://www.freemalaysiatoday.com/category/nation/2024/ 01/04/firm-under-probe-over-rm9-6m-in-missing-zakat-collections/ (Accessed on 3 June 2026).
Aziz, I. H. (2026a). Kes Seleweng Dana Zakat RM230 Juta: Dua Individu Termasuk Timbalan Pengerusi NGO Dibawa Ke Mahkamah Untuk Reman. Berita Harian, April 22. https://www.bharian.com.my/berita/nasional/2026/04/1536665/kes-seleweng-dana-zakat-rm230-juta-dua-individu-termasuk-timbalan (Accessed on 3 June 2026).
Aziz, I. H. (2026b). Salah Guna Kuasa, Seleweng Dana RM12.3 Juta: Pendakwah Bebas Juga Pempengaruh Agama Ditahan, 51 Keping Emas RM31,000 Antara Disita. Berita Harian, April 22. https://www.bharian.com.my/berita/nasional/2026/04/1536923/ salah-guna-kuasa-seleweng-dana-rm123-juta-pendakwah-bebas-juga (Accessed on 3 June 2026).
Bougie, R., & Sekaran, U. (2026). Research Methods for Business, with eBook Access Code: A Skill Building Approach (9th Edition). New Jersey, USA: John Wiley & Sons.
DOSM. (2026). Demographic Statistic Malaysia, First Quarter 2026. Putrajaya: Department of Statistics Malaysia (DOSM). https://www.dosm.gov.my/portal-main/release-content/ demographic-statistic-malaysia-q12026 (Accessed on 3 June 2026).
Fadzlyn, N., Isa, F. M., & Mohamad, S. (2023). Corporate Governance Practices Affecting Performance: A Case Study of Malaysian Elderly Care Centres NGOs. In Finance, Accounting and Law in the Digital Age: The Impact of Technology and Innovation in the Financial Services Sector (pp. 55–65). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-27296-7_6
Ghazali, N. I., Amin, N. A. M., & Fadhilah, R. (2024). Enhancing Accountability Through Web Based Disclosure Practices of Foundations in Malaysia. Edelweiss Applied Science and Technology, 8(4), 1675–1686. https://doi.org/10.55214/25768484.v8i4.1543
Hadi, H. A., Bakar, A. N., Noor, N. H. M., & Zainon, S. (2023). Downward Accountability to Improve Malaysian Nonprofit Organisations. Journal of Islamic, Social, Economics and Development, 8(53), 1–14. https://doi.org/10.55573/JISED.085301
Huang, H. J. (2023). A Contingency-Based Accountability and Governance Framework for the Non-Profit Sector in the Post-COVID-19 Era. Pacific Accounting Review, 35(1), 50–65. https://doi.org/10.1108/PAR-09-2020-0164
Kamaruddin, M. I. H., & Ramli, N. M. (2018). The Impacts of Internal Control Practices on Financial Accountability in Islamic Non-Profit Organizations in Malaysia. International Journal of Economics, Management and Accounting, 26(2), 365–391.
Kamaruddin, M. I. H., Kamarubahrin, A. F., Haron, H., Hanefah, M. M., Bustamam, U. S. A., Ramli, N. M., Razali, R. M., Md Yusof, A. F., & Wook, I. (2025a). From Fraud Diamond Theory to the Malaysian National Anti-Corruption Strategy (NACS) 2024-2028. Public Integrity. https://doi.org/10.1080/10999922.2025.2554408
Kamaruddin, M. I. H., Kamarubahrin, A. F., Ramli, N. M., Bustamam, U. S. A., Hanefah, M. M. (2025b). Factors and Impacts of Corruption in Malaysia: Developing the Malaysian National Anti-Corruption Strategy 2024-2028. International Journal of Public Policy and Administration Research, 12(3), 168–184. https://doi.org/10.18488/74.v12i3.4342
Lokman, N., Othman, S., & Kamal, N. A. M. (2023). Governance, Accountability and Transparency Level of Non-Profit Organisation: A Study of Malaysian Foundations. International Journal of Business and Technology Management, 5(1), 304–318. https://doi.org/10.55057/ijbtm.2023.5.1.24
Mahadi, R., Sariman, N. K., & Ali, Z. M. (2022). Motivations for Voluntary Financial Reporting by Religious Non-profit Organisations (RNPOs) in Malaysia: A Conceptual Paper. Global Business and Management Research, 14(3s), 482–489.
Muhamad, H. (2025). Op Serantau: Pengerusi NGO di Melaka Suspek Utama Kes Seleweng Dana RM26 Juta. Astro Awani, June 25. https://www.astroawani.com/berita-malaysia/op-serantau-pengerusi-ngo-di-melaka-suspek-utama-kes-seleweng-dana-rm26-juta-526677 (Accessed on 3 June 2026).
Nair, R., Arshad, R., Muda, R., & Joharry, S. A. (2023). Web-Disclosure Practices for Transparency and the Sustainability of Non-Profit Organisations. International Review on Public and Nonprofit Marketing, 20(1), 1–23. https://doi.org/10.1007/s12208-021-00330-2
Nawawi, A. M. A. M., Anuar, N. A., & Samar, N. (2024). Legal Framework for Non-Profit Organisations in Malaysia and the Need for a Standard Regulatory & Compliance Framework in Charity Governance. International Journal of Islamic Economics and Finance Research, 7(2), 91–104. https://doi.org/10.53840/ijiefer152
Ortega‐Rodriguez, C., Martin‐Montes, L., Liceran‐Gutierrez, A., & Moreno‐Albarracin, A. L. (2024). Nonprofit Good Governance Mechanisms: A Systematic Literature Review. Nonprofit Management and Leadership, 34(4), 927–957. https://doi.org/10.1002/nml.21598
Rahmat, N. E., Mahamud, M. H., Razak, M. U., & Billah, M. (2024). Standardization of Third-Sector Organizations Reporting through Regulatory Frameworks in Malaysia. Pakistan Journal of Life & Social Sciences, 22(2), 1297–1309. https://doi.org/10.57239/PJLSS-2024-22.2.0091
Roslan, S. (2024). Alif Teega dan Aisyah Hijanah Mengaku Tidak Bersalah, Salah Guna Wang Infak Lebih RM1.52 Juta. Berita Harian, September 23. https://www.bharian.com.my/berita/kes/2024/09/1301886/alif-teega-dan-aisyah-hijanah-mengaku-tidak-bersalah-salah-guna-wang (Accessed on 3 June 2026).
Uygur, S. A., & Napier, C. J. (2024). Understanding Fraud in the Not-For-Profit Sector: A Stakeholder Perspective for Charities. Journal of Business Ethics, 190(3), 569–588. https://doi.org/10.1007/s10551-023-05373-5
Wahab, N. A., Sapuan, N. M., & Abdinazarovich, O. A. (2022). Internal Corporate Governance Mechanism: A Review. Journal of Governance and Integrity, 5(2), 237–248. https://doi.org/10.15282/jgi.5.2.2022.7103
Wan Husain, W. A. F., Mustapha, M. R., Fernando, Y., & Zailani, S. A. A. (2025). World-Class Good Governance Ethics: A Key Solution to Tackle Criminal Acts in Malaysian Public-Listed Companies. Journal of Islamic Accounting and Business Research, 16(6), 1132–1147. https://doi.org/10.1108/JIABR-10-2022-0277
Zakaraya, S. Z. (2026). Pendakwah Bebas Terkenal Direman SPRM, Disyaki Salah Guna Kuasa. Sinar Harian, February 5. https://www.sinarharian.com.my/article/766887/ berita/semasa/pendakwah-bebas-terkenal-direman-sprm-disyaki-salah-guna-kuasa (Accessed on 3 June 2026).
Zakaria, D. A. (2023). Kronologi kes Ahmad Zahid. Astro Awani, September 4. https://www.astroawani.com/berita-malaysia/kronologi-kes-ahmad-zahid-435814 (Accessed on 3 June 2026).
