Allegations of financial mismanagement at the recently ended Foh Sang Chinese New Year Night Market have sparked controversy, with community leaders now pushing back against claims that a RM200,000 state grant was misused.

The funding, which was approved by the Ministry of Finance, was never intended for the night market, say Luyang community development leader Chin Thau Kwong and Light Up Luyang CNY Night Market organizing chairman Chai Shen Leong. 

Instead, they insist it was allocated for separate festive initiatives, including beautification projects and vendor assistance.

“The RM200,000 grant was not used for organizing the Light Up Luyang Chinese New Year Night Market,” they said in a joint statement. 

“We hope to clarify any misunderstandings and correct misinformation.”

Chin Thau Kwong emphasized that the funds were strictly for Chinese New Year-related initiatives in Luyang, separate from the night market’s budget. 

“The official title in the approval letter was clearly stated as the ‘2025 Luyang Chinese New Year Grant Application’—not for the night market,” he said.

“This amount was separated from the expenses and accounts of the Foh Sang Night Market and was not used for the event.”

Chai Shen Leong addressed concerns over the market’s financial structure, explaining that the total cost of the event amounted to approximately RM127,000. 

Although stall rentals generated RM60,500 from vendors paying RM550 each, he said there was still a RM66,500 shortfall, which was covered by Luyang assemblyman Datuk Phoong Jin Zhe.

“The total cost of the CNY night market was approximately RM127,000. After deducting revenue from stall rentals, there was still a shortfall of approximately RM66,500, which was ultimately covered by Phoong Jin Zhe,” Chai said.

The expenses, he added, covered performances, decorations, security, and venue costs, including RM12,000 for lion and dragon dance performances, RM8,000 for cultural and musical acts, RM20,000 for stage setup, RM11,000 for decorations, and RM7,000 for venue rental to Kota Kinabalu City Hall (DBKK).

Warisan’s Chin Teck Ming had earlier called for transparency over the grant, citing social media claims that the money was meant for the night market. 

He also raised concerns over the RM550 stall rental fees, noting that vendors were not permitted to rent directly from DBKK, which usually charges RM20 per night.

“People are questioning why such high fees were charged if there was already an allocation of RM200,000. 

“Where did the money go?” he asked. “If the total cost was about RM120,000, there should be a surplus. Why burden the vendors with RM550 per stall?”

The issue had also drawn criticism from the National Consumer Foundation (Sabah Branch), which described the rental fees as excessive and called for greater transparency.

However, Chin and Chai dismissed the accusations, stating that all financial records would be submitted to the Ministry of Finance as required. 

“We believe the residents and businesses in Foh Sang can see these efforts,” they said. 

“Together, we will create a brighter and more hopeful future for our community.”

The Luyang assemblyman’s office reaffirmed its commitment to transparency and said it welcomed public scrutiny.

 It also invited residents to take part in planning the 2025 Foh Sang Mid-Autumn Carnival. – March 1, 2025