Photo: AFP
Some local NGOs on the verge of shutdown following USAID funding freeze
PETALING JAYA: As the Trump administration severely scales back on foreign aid by dismantling the US Agency for International Development (USAID), activists now fear that this may shut down crucial programmes and some non-governmental organisations (NGOs) due to a lack of funds.
They said many human rights bodies and environmental conservation groups are looking at laying off staff and even pulling the brakes on crucial programmes that support issues ranging from underserved communities to wildlife preservation.
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Several NGOs affected by the USAID cuts have also refused to be named in this report due to fear of reprisals.
North-South Initiative executive director Adrian Pereira said he knows some NGOs dealing with mental health, labour rights, human rights, refugees, healthcare for non-citizens and people living with HIV who are impacted by the USAID cuts.
“Even programmes mobilising Malaysian workers into trade unions have also been affected. This is the unfortunate reality that we are facing.
“Some NGOs are also shutting down, and even if the NGOs don’t receive direct support from USAID, their intermediary funders are being affected on a massive scale, so it trickles down to the NGOs,” he added.
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Pereira urged the Malaysian government to provide emergency relief to the NGOs to help them continue their services while the groups seek new funding.
“This is important,” he said.
Douglas Teoh, the national director of Young Lives Malaysia, an NGO working with refugees, estimates that USAID cuts might impact up to 40 NGOs.
“Many NGOs working with refugee resettlement had their team downsized significantly or are on the verge of closing down.
“Organisations dealing with healthcare may not be able to provide many services too as a result of the cuts,” he said.
Teoh, who said he is not authorised to reveal the names of the affected NGOs, also shared that a local group that hosts a gender-based violence shelter for victims of domestic violence is at risk of closing down.
“They came up with an announcement saying that they will no longer be in operation at the end of this month,” said Teoh, noting that his NGO is not affected by the USAID funding cuts.
“Most of those funded by USAID will significantly downsize if they don’t get funds.”
According to Teoh, an internal statistic by Young Lives showed that 70% of the refugees it assisted are unable to afford preventative healthcare and save money.
Sivaranjani Manickam, who is Asylum Access Malaysia associate director of operations, said the organisation was affected by the USAID cuts.
“But my office in Malaysia is not a direct beneficiary of USAID,” she said.
Sivaranjani said the global office and the Thailand office are impacted by the cuts as they are direct programme implementers.
The cuts, she explained, have affected its yearly budget as her office in Malaysia shares the same resources as other offices.
“We are now doing massive layoffs and giving up office space.
“We need to assess the situation in the coming year to see if we can source other funding to survive.”
Sivaranjani said the organisation’s work is crucial in Malaysia as it is currently the biggest host country for the refugee population in the South-East Asian region.
“Asylum Access Malaysia is the only legal aid provider for refugee rights in Malaysia.”
On March 10, US Secretary of State Marco Rubio announced on X that USAID will slash 83% or 5,200 of some of its 6,200 programmes.
This came after US President Donald Trump issued a 90-day pause on US development assistance on Jan 20.
