KOTA KINABALU: Sabah government funds were not used for a Chinese New Year night market in Luyang but for general expenses related to the festival, community leaders with the state assemblyman's office say.
The controversy emerged following social media claims that the office of assemblyman Datuk Phoong Jin Zhe received RM200,000 from the government for the "Light Up Luyang" Chinese New Year night market event.
This then gave rise to questions about the need to charge stall operators rental, given the allocation.
Luyang community development leader Chin Thau Kwong and "Light Up Luyang" organising chairman Chai Shen Leong said in a joint statement Sunday (March 2) that the RM200,000 grant was not used for the night market event.
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Instead, they said it was for various festive expenses including decorative lanterns, beautification, and financial aid for vendors at Foh Sang Market.
“The grant had been applied for at the end of last year and was approved by the Finance Ministry under the title ‘2025 Luyang Chinese New Year Grant Application’ separate from the night market budget," they said.
According to the statement, the allocation was used to buy and install over 2,000 lanterns and decorative lights; for beautification of the Lido, Foh Sang and Bornion areas, among others; and to give one-time financial assistance of RM1,000 each to about 70 vendors at Foh Sang Market.
Chin said RM27,000 was spent on bulk purchases of lanterns, RM22,000 on LED roll lights and decorative fairy lights, RM15,464 on materials and fittings, RM5,000 on sky lift rentals, and RM26,000 on labour and installation costs.
Additional expenses included transportation, rental of traffic control services, and festive gift preparations, he added.
Chai, addressing the concerns over the night market event, said the total cost amounted to around RM127,000.
After deducting revenue from stall rentals, with 110 vendors charged RM550 each for the three-day event, there was still a deficit of RM66,500 which Phoong personally covered, he added.
“The night market event’s expenses included lion and dragon dance performances, cultural and musical acts, stage setup, decorations, security, volunteer allowances, and venue rental fees paid to Kota Kinabalu City Hall (DBKK),” Chai said.
The statement said the assemblyman was committed to Luyang’s development, citing the newly completed Foh Sang Landmark built with a separate RM200,000 government grant.
This project, as well as ongoing pedestrian walkway improvements under the 12th Malaysia Plan, aims to enhance the district’s aesthetics and safety, it read.
“By making these expenditures public, the Luyang assemblyman’s office hopes to foster greater trust and transparency within the community.
"Acknowledging public concerns, we welcome constructive criticism and pledge to engage the community more proactively in future event planning, inviting suggestions for the upcoming 2025 Foh Sang Mid-Autumn Carnival,” they said.
In earlier reports, opposition Parti Warisan legal adviser Chin Teck Ming stressed the need for transparency in public fund utilisation.
He asked why vendors at the "Light Up Luyang" event were charged rental fees if government funds were available to cover event costs.
His statement prompted the assemblyman's office to release the detailed expenditure breakdown.
