Sim said he had proposed such a fund during the debate on the 2021 national budget to help businesses related to sports and recreation. The youth and sports ministry had subsequently announced the sports industry financing scheme, he added.
A total of RM20 million was allocated to the scheme for loans to those in the sports industry, through Tekun Nasional and Bank Rakyat.
However, he said many local industry operators had complained about the scheme, with some claiming it was not helpful to them due to its long approval process of 40 days as well as the unreasonable interest rate.
A check with sports industry operators also found they were already burdened with debts while having no income during the lockdowns ordered by the government.
“Clearly, the scheme has failed to help the industry weather the economic challenges caused by Covid-19,” Sim said in a statement today.
He suggested that the government improve the sports industry financing scheme to include an interest-free loan with a six-month moratorium, besides cutting down the approval time for loan processing.
“As such, I urge the government to set up a RM100 million continuity fund to save the sports industry in Malaysia.”
Among his suggestions was for the government to provide a monthly subsidy of up to 50% for the monthly rent, or a maximum of RM5,000, to businesses in the sports industry that were ordered to close throughout the various lockdowns.
He said rental exemption should be extended to businesses that are renting government premises during the same period.
Sim said a grant of up to RM10,000 should be provided to help the industry shift to the digital platform.
“A special one-off grant of RM2,000 must also be given to help the sector, which has been severely affected since March last year.
“Besides that, a RM1,000 monthly assistance should be given to individuals working on their own in the industry, told to shut down during the lockdowns.”
He added the government should consider providing an upskilling and reskilling allowance of RM1,000 a month to people taking sports or coaching courses recognised by the youth and sports ministry.
“The RM100 million is only about 10% of the ministry’s budget and it would not be excessive to use to rescue the industry at a time when many of the ministry’s programmes can’t be run this year,” Sim said.
He said the Malaysian sports industry involved some 15,000 workers and also provided business opportunities to local small and medium enterprises.
“In the last one year, this sector is among those most affected as they were the earliest to close down and among the last to reopen.”
Meanwhile, Sim also urged the government to use the science and data approach when issuing orders for businesses to close instead of using the “essential” and “non-essential” labels.
“If factories, which have hundreds of workers, are allowed to operate, then why can’t fitness coaches be allowed to go to the gym or fitness centre to record or hold video streaming of their sessions for the benefit of their trainees or customers?”