KUALA LUMPUR: The FA of Malaysia's (FAM) suspension of Perlis FA (PFA) will not affect FIFA sanctions but may have severe financial repercussions if debts remain unsettled.
A trusted source warned that FAM could lose up to 40 per cent of its FIFA Forward funding if PFA fails to pay former football director Matt Holland as ordered.
"FAM stands to lose another 20 per cent if PFA doesn't settle the outstanding amount within the 30-day window specified by FIFA," the source said.
FIFA recently directed PFA to pay RM998,658 in wages and compensation to Holland, along with a fine of US$5,000 (RM22,095).
FAM, named as a second respondent for failing to enforce the ruling, was also fined US$5,000.
PFA's failure to comply with FIFA's decision led FAM to suspend the association under Article 17 of its statutes, citing a serious breach of obligations.
"Suspending PFA is necessary, but it doesn't influence FIFA sanctions," FAM said in a statement.
"The only way to avert further penalties is for PFA to settle the payment in full."
This development comes after the Malaysian Football League (MFL) barred PFA from the M-League in 2019 for failing to meet salary obligations.
Since then, PFA has made no effort to resolve the issue.
The FIFA Forward 3.0 programme provides member associations with up to US$8 million (RM35.4 million) over a four-year cycle for football development.
However, non-compliance risks significant funding cuts, which could derail Malaysia's footballing ambitions.