Amendments to the MARA Act 1966 are expected in June to modernise governance, enhance transparency, and introduce a Syariah Advisory Committee.
KUALA LUMPUR: Amendments to the Majlis Amanah Rakyat (MARA) Act 1966 are expected to be tabled in Parliament as early as June to ensure the agency remains relevant and well-governed.
MARA chairman Datuk Dr Asyraf Wajdi Dusuki said the draft amendment had been completed and was now in the engagement phase with various relevant ministries and agencies, including the Finance Ministry, Economy Ministry, the Prime Minister’s Department and the Legal Affairs Division, to obtain comprehensive views.
He said the amendments involve modernising the management framework, strengthening the organisation’s strategic functions and realigning MARA’s mandate with current developments and future challenges.
“Among the main focuses is ensuring greater transparency and accountability in the management of the institution, especially when the need to amend the act has become more pressing after more than six decades,” he said at MARA’s annual media engagement session here today.
Asyraf Wajdi said there is no legal restriction for an individual to sit on several committees approved by the board of directors, but morally, and in terms of governance, the situation could create a conflict of interest.
“For example, someone serving on the investment committee should not be on the audit committee. Such matters were not widely discussed in the 1960s and 1970s,” he said.
He said that Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also the Minister of Rural and Regional Development, was also involved in the internal engagement process since the Act falls under the ministry’s jurisdiction.
In addition, Asyraf Wajdi said the proposed establishment of a Syariah Advisory Committee was among the key components of the amendment.
“This is because MARA manages public funds, particularly those involving Bumiputera, who expect every aspect of its operations to comply with syariah principles. It is not just about in terms of financial instruments, but also the overall operations and management,” he said.