Economist plays down concerns over closing Kedah's gambling centres

An economist has played down the odds of a significant drop in income for the Kedah government following the decision to close down gambling premises throughout the state. 

Speaking to MalaysiaNow, Ahmed Razman Abdul Latiff said the move would have only a minimal impact on Kedah's economy, given that the population of non-Muslims residing in the state is estimated to be fewer than 300,000.

Of these, perhaps no more than 50,000 frequent gaming premises, he added. 

"Proceeds from assessment tax and business permits can be replaced by other businesses," Razman, the director of Putra Business School's MBA programme, said.

"So there will be no impact on the state government's revenue, and investors do not see the gambling industry as important in Kedah, where the majority of the population is Muslim." 

Kedah Menteri Besar Muhammad Sanusi Md Nor had said that gambling premises throughout the state would be closed effective January 2023, after a decision not to renew their operating licences. 

Kedah joins Kelantan and Terengganu which have taken similar steps, while Perlis has yet to decide whether to do the same. 

While the move was hailed by the Muslim community, others, including DAP, urged the state government to reconsider the decision. 

Kedah DAP secretary Teh Swee Leong said closing down gambling premises might give rise to other social problems due to an increase in illegal gaming. 

Sanusi however maintained his position, saying he would close down gambling and lottery operations in the state even if these brought in hundreds of millions in revenue.