Minister in the Prime Minister's Department Mohd Nazri Abdul Aziz said this when winding up for the department on points raised during the policy stage of the Budget 2013 debate.
"However, there are no provisions in both these laws that prohibit companies or organisations from receiving foreign funds," Nazri said.
"In relation to that, no legal action can be taken against companies or organisation that receive any foreign funds."
Existing legislation, he argued, also exists to combat the spread of subversive foreign influence, such as the newly enacted Security Offences (Special Measures) Act 2012.
BN and pro-BN MPs had asked about action to be taken against organisations recently accused of having received foreign funds.
Pro-BN groups have accused the NGO of being a foreign agent using foreign funds in an attempt to topple the government.
However, Suaram and the opposition have pointed to the NGO’s role in bringing up the case of alleged corruption in the sale of two Scorpene submarine by French shipbuilder DCNS to a judicial inquiry in France as why it is being persecuted.