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Hosting Commonwealth Games could plunge Malaysia into debt, warns MP | Scoop
Despite the Commonwealth Games Federation's promise of RM602 million in funding, Afnan Hamimi Taib Azamudden believes hosting the event will exacerbate Malaysia's economic woes. – Screengrab, March 19, 2024
News

Hosting Commonwealth Games could plunge Malaysia into debt, warns MP

Alor Star MP highlights extensive preparation required for hosting such large-scale event, including sponsorships, promotions, infrastructure upgrades

Scoop Reporters
Updated
9:10 PM MYT

 

KUALA LUMPUR – Alor Star MP Afnan Hamimi Taib Azamudden wants the government to reject the offer to host the Commonwealth Games in 2026 in order to avoid heavy financial implications.

During today’s parliamentary session, Afnan said that hosting the quadrennial multi-sport event will only worsen Malaysia’s financial situation.

He said that, while it is enticing to have Malaysia host the Games, with the promise of substantial funding of around RM602 million from the Commonwealth Games Federation,  it will still be a significant financial and logistical burden.

Afnan emphasised that the meticulous preparation required to successfully host an event of this magnitude cannot be understated.

“To become a host, it takes at least 4 years to prepare for sponsorships, promotions, refurbishments of existing sports facilities, and also the construction of new facilities.

At the same time, Afnan said that Sports Commissioner Suhardi Alias echoed the same concerns, warning against the imprudence of accepting the hosting offer. 

He said that with the projected costs potentially reaching up to RM13 billion, it will have an adverse impact on Malaysia’s already worrying national debt, which stands at 6.4% of gross domestic product.

“Although the Olympic Council of Malaysia said that this event can still be organised with a scaled-down model, in my opinion, the amount of money intended for Malaysia to host this event would be better utilised in resolving the primary issues affecting the country at this time,” added the PAS Youth chief.

Meanwhile, Afnan drew parallels with past hosts, particularly Birmingham, which declared bankruptcy in 2023, a year after hosting the Commonwealth Games. Afnan cautioned against repeating similar mistakes.

However, further checks by Scoop revealed that Birmingham City Council had declared bankruptcy, blaming financial problems on equal pay claims, budget shortfalls, and £1 billion (RM6 billion) in government cuts over the last decade.

The equal pay claims were estimated at £650 million to £760 million, with ongoing liabilities accruing monthly.

Aside from that, the council leader stated that problems with a new IT system being implemented throughout the council are one of the reasons for their bankruptcy, which could cost up to £100 million to resolve. – March 19, 2024

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