KUALA LUMPUR, Feb 3 (Sin Chew Daily) — Chinese clan associations and organizations are facing financial constraints as revenue-generating activities are put on hold infinitely and lower rental collection, forcing many to pay their operating expenses with reserve funds.

Some organizations have since switched to organizing virtual events but are still unable to raise sufficient funds to sustain their operations. Future plans are put on hold, too.

The LLG Cultural Development Center chairman Goh Kean Seng said many activities organized by the center had been converted to virtual events and the center did not manage to raise sufficient funds and had resorted to using its reserves since last year to cover a shortfall of RM400,000.

The reserve could only last for two to three years, said Goh.

The center used to organize events such as charity run, charity sale and dinners to raise funds but these events have been canceled due to the implementation of movement control order to curb the spread of COVID-19 pandemic.

"After converting some of the events to virtual sessions, we face the problem of raising funds in a large-scale manner," he said.

The nine-year-old LLG Cultural Development Center increased its staff from three to 11 while its annual operating expenses rose from RM500,000 to RM1.5 million.

Goh said the center was sourcing for new strategies by diversifying to the sale of Chinese New Year cookies online and virtual run to generate revenue in a new normal way.

Datuk Dr Wong Aik Loung, secretary of the Federation of Chinese Associations, Malaysia (Huazong) said Huazong used to chalk RM2 million in revenue from property leasing and events to pay for its operating expenses and activities.

However, since the COVID-19 pandemic started last year, the Malaysian Chinese Museum under Huazong has been hit hard in the absence of visitors.

The grand hall at Wisma Huazong also faces similar predicament without leasing activities.

Dr Wong said he hoped the pandemic would end soon.

Federation of Hainan Association Malaysia president Datuk Lim Chiew Ah said buildings owned by the federation were facing problems of leasing. Tenants who used to be good paymasters ended their businesses and moved out. Some had difficulties paying their rents.

The federation is now seeking ways to reduce its financial burden, she said.