Sconpo Strengthens Inter-agency Cooperation To Safeguard Malaysia's NPO Sector
LABUAN, Oct 12 (Bernama) --The Sub-Committee on Non-Profit Organisations (SCONPO) is strengthening inter-agency cooperation to enhance governance, safeguard public trust and protect Malaysia’s non-profit organisation (NPO) sector against terrorist financing risks.
SCONPO chairman Syahrul Imran Mahadzir said closer collaboration among regulatory authorities, improved information sharing and proportionate safeguards were essential to ensuring that NPOs could continue carrying out their social and charitable missions without being exposed to financial crime and misuse.
“Public trust is the NPO sector’s greatest asset. Strong governance protects that trust and turns public support into lasting value for communities,” he said in a statement to Bernama today.
Syahrul, who is also Labuan Financial Services Authority (Labuan FSA) deputy director-general, said the committee remained committed to building a resilient NPO ecosystem through stronger partnerships and greater awareness of emerging terrorist financing threats.
“Our objective is a resilient NPO sector that can grow with confidence. Closer partnerships, better information sharing and proportionate safeguards will protect its integrity and enable NPOs to fulfil their social missions,” he said.
He said the ongoing efforts built on Malaysia’s progress recognised in the 2025 Financial Action Task Force (FATF) Mutual Evaluation, which acknowledged SCONPO as the principal platform for NPO regulators to discuss sectoral issues and exchange information.
Currently chaired by Labuan FSA, SCONPO operates under the National Coordination Committee to Counter Money Laundering (NCC) and brings together regulatory authorities overseeing different segments of the NPO sector nationwide.
As part of its ongoing initiatives, SCONPO organised the National Symposium on Non-Profit Organisations 2026 on Sept 30, bringing together more than 200 participants, including NPO representatives, regulators and key stakeholders.
The symposium, jointly organised by Labuan FSA, the Registrar of Societies Malaysia, the Companies Commission of Malaysia and the Legal Affairs Division of the Prime Minister’s Department, was officiated by Deputy Finance Minister Liew Chin Tong.
Themed “Building a Resilient NPO Ecosystem: Understanding Terrorist Financing Threats and Governance of Regulatory Responsibilities”, the symposium provided a platform for dialogue, knowledge sharing and the exchange of practical experiences in strengthening governance and managing terrorist financing risks.
The programme emphasised awareness, preparedness and practical safeguards to help NPOs respond to evolving regulatory expectations while protecting their missions, financial resources and reputations.
In his keynote address, Liew highlighted the important role of NPOs as the country’s “third sector”, alongside the public and private sectors, particularly in supporting national development and addressing community needs.
He said NPOs had considerable potential to contribute to national development, especially in healthcare and education, through their involvement in community-based initiatives and social services.
Meanwhile, Syahrul said SCONPO had also conducted a series of engagements throughout the year, including working group meetings and a dedicated workshop, with Bank Negara Malaysia participating as an observer.
He said these engagements had helped strengthen coordination among regulatory authorities, particularly in aligning policy implementation, sharing law enforcement insights and responding to emerging risks affecting the sector.
He stressed that addressing terrorist financing threats required a coordinated approach, as no single agency could effectively tackle such risks in isolation.
Labuan FSA, as the agency chairing SCONPO, would continue working closely with member agencies and stakeholders to strengthen regulatory cooperation, safeguard national security and ensure charitable resources reached their intended beneficiaries without being diverted for illicit purposes.
The initiatives also aim to maintain a balanced regulatory environment that protects the integrity of the NPO sector while enabling charitable organisations to continue serving communities effectively.
-- BERNAMA