Malaysia has renewed its commitment of US$1 million (RM4.08 million) to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) for 2026 to 2030, as the agency faces a US$100 million cash-flow shortfall this year.
Foreign Minister Mohamad Hasan said predictable and sustained funding was needed for UNRWA to continue providing assistance, protection and services to millions of Palestinian refugees.
Malaysia has contributed about US$6.7 million (RM27.4 million) to UNRWA over the past five years, after increasing its support following the outbreak of the Gaza war in 2023. The country has been a regular contributor to the agency since 1978.
The new commitment will provide US$200,000 a year through 2030. Malaysia made a similar US$1 million five-year commitment for 2021 to 2025.
The renewed pledge comes as UNRWA faces a widening gap between its funding and operating needs.
The agency said in June that it had been forced to reduce service delivery hours by 20% from January, while maintaining a 15.5% vacancy rate among international staff because of its cash-flow situation.
Even after implementing about US$175 million in austerity and cost-control measures in 2025, UNRWA said it still faced a US$100 million cash-flow deficit for 2026.
The agency is also seeking US$1.26 billion through its 2026 emergency appeal for the occupied Palestinian territory, covering assistance for an estimated 2.4 million people in Gaza and the West Bank, including East Jerusalem.
As of June, only 4% of the appeal, or US$51 million, had been confirmed in pledges.
UNRWA's financial problems have also been affected by the loss of major donors.
Following allegations in 2024 involving UNRWA staff, several countries suspended funding. Some later resumed their contributions, but the United States and Sweden remained among the major donors that did not return to previous funding levels.
UNRWA Commissioner-General Philippe Lazzarini said in 2025 that the loss of the United States and Sweden had left the agency without projected income to cover its funding deficit in the first quarter of 2026.
The United States had historically been UNRWA's largest government donor, making its withdrawal particularly significant for the agency's finances.
The funding model leaves UNRWA heavily dependent on voluntary contributions from governments and other donors. When major contributors withdraw, the agency must seek replacement funding while continuing to operate schools, healthcare services and humanitarian programmes across the region.
UNRWA received US$829 million in contributions in 2025 against requirements of about US$3.3 billion, according to figures presented at the agency's June 2026 pledging conference.
Malaysia's renewed commitment therefore comes alongside a broader appeal for countries to provide longer-term and more predictable support rather than relying primarily on emergency funding when crises intensify.
Mohamad urged other member states that are in a position to do so to increase their support for UNRWA.
He also condemned Israel's incursion into and seizure of UNRWA's Kalandia Training Centre, saying UN premises must be respected. The UN has separately raised concerns about restrictions on UNRWA's operations and personnel.
For Malaysia, the new pledge maintains its financial support for an agency that has been at the centre of international efforts to provide services to Palestinian refugees.
For UNRWA, however, the US$1 million commitment represents only a small portion of the funding needed to maintain its current operations.
The wider question is how the agency can sustain long-term services when its funding remains largely dependent on voluntary contributions and several major donors have stepped back.
Malaysia's pledge adds to the pool of funding available to UNRWA, but closing the wider gap will require contributions from a much broader group of donors.