The Malaysian Anti-Corruption Commission (MACC) has welcomed planned reforms to political funding, stating that they should include requiring political parties to declare all their sources of funding and accounts.

The graft buster said this will stop those being investigated from giving excuses that money found in their own personal account belonged to their political party.

"The implementation will prevent a politician investigated of receiving bribes from using the excuse that the money received in personal accounts is a contribution for political party when there are no details or documentation presented (to back the claim)," it said in a statement today.

Yesterday, Najib announced the formation of the National Consultative Committee on Political Financing (JKNMPP) which will consult stakeholders and formulate a political financing law.

Najib had set a target of one year for the committee to complete its work and for the reforms to be instituted before the next general elections, due in 2018.

This is amid the controversy over RM2.6 billion deposited into Najib's personal bank accounts which he claimed to be a political donation.

Stressing the importance of the reforms, the MACC pointed out that people may look down on political parties depending on the source of their political funding.

"Some in society judge a political party negatively simply because of its political funding.

"Therefore, it is important for political parties to build a positive perception in society," it said.

The MACC also suggested that under the reforms, political funds that will be channeled to individuals must receive written approval from the heads of political party.

It also proposed that the reforms include requiring all public officials to declare donations and gifts that they receive.

MACC said this was important to ensure a holistic reform, and pledges to give its input to the new committee.