ALOR STAR – Kedah may face economic challenges in the short term, following the state government’s decision to cease the issuance of new licences and renewal of existing licences for gambling businesses, including 4D lottery operations.
Economist Prof Barjoyai Bardai said this is because the gambling premises’ licence renewal fee collected by the local authorities is part of the state government’s source of revenue.
However, he said, the state’s economy is predicted to be more comfortable in the long run after the implementation of the new rules on gambling premises.
“In the short term, yes, Kedah’s financial resources will be a little difficult, but this will gradually disappear because it will be replaced by other economic resources.
“In the long run, Kedah’s economy is expected to be more positive, and gambling activities in the community will also be replaced with more productive things,” he told The Vibes today.
Earlier, Menteri Besar Datuk Seri Muhamad Sanusi Md Nor announced that the state will neither issue new licences, nor renew existing ones for gambling effective immediately.
Sanusi, who is also state PAS deputy commissioner, said that apart from gambling licences, the state government will also restrict the sale of alcohol in public, including on the holiday island of Langkawi.
Liquor will only be allowed to be sold to non-Muslim consumers.
Barjoyai said Kedah’s decision is almost akin to the federal government’s move to sell all of the government’s gambling company holdings to the private sector in the 1980s.
He said the government had owned several gambling firms as the main source of its revenue after independence, based on British teachings at the time.
“However, after the fatwa that said income from gambling is illegal, the government sold all gambling company properties. Among them was the sale of Sports Toto to Tan Sri Vincent Tan.
“At that time, our economic resources were a little lost, but eventually, we found other economic resources such as oil and plantations,” he said.
Meanwhile, Kedah DAP chairman Tan Kok Yew called on the state government to re-evaluate the decision as it is not suitable to be implemented when the economy has not yet fully recovered from the Covid-19 pandemic.
He expressed concern that the ban would only lead to the problem of illegal gambling, whether online or conducted physically at private premises, becoming more critical.
“Is it true that gambling damages the family institution? I think there are a lot of factors that contribute to the problem and it does not just stem from gambling alone,” he said.
“I don't know why the menteri besar wants to do it now. Is it because he wants to cover up his weaknesses in governing Kedah?”
Tan said the state government should focus on issues surrounding economic development and corruption, as the licensed gambling industry is regulated.
Gambling licences in Malaysia are subject to the Finance Ministry. However, permission to operate for gambling premises is under the authority of local state authorities.
Sanusi said that his administration wants to make Kedah into a “gambling-free state”, claiming that gambling is the cause of the collapse of family institutions and the nation’s civilisation. – The Vibes, November 14, 2021
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