Malaysia: Missing out on entertainment tourism revenue due to red tape and religion
Malaysia lost more than RM1 billion (S$285 million) in potential entertainment tourism receipts in 2023, experts estimate, after concerts were scrapped amid stringent government rules and protests from religious parties.
(The Nation, Thailand) – Four concerts were scrapped in 2023, up from the two that were turned down in 2022, the Central Agency for Application for Filming and Performance by Foreign Artistes (Puspal) told The Straits Times.
Among the concerts that were not approved in 2023 were those planned for renowned Indian singer Karthik and the arts and music festival Pinkfish Live, featuring American rapper Lil Pump.
An industry source told ST that the American singer-songwriter Lauv’s tour in Malaysia slated for September 2023 was also cancelled due to heightened political scrutiny on concerts amid opposition by Islamists who were against foreign performers.
Malaysia University of Science and Technology economics professor Geoffrey Williams, who estimates the lost revenue at over RM1 billion, said “onerous regulations” were to blame. “They create risk and make it more difficult for event organisers to put on shows,” he told ST.
If the missed gigs had taken place, receipts from entertainment tourism – which includes all ticketed entertainment events – would have been up to a minimum of 30 per cent higher than the RM2.4 billion received in 2023, according to local live performance association Arts, Live Festival and Events Association (Alife).
Concertgoers who flew in from overseas alone generated more than RM800 million in tourism receipts, contributing about RM83 million in taxes, in 2023, said the association.
“We are very much below our potential. The year 2023 was the biggest year of concerts globally, but we lost out on hundreds of millions due to our poor reputation affected by protests and strict regulations,” said Alife president Rizal Kamal.
Ticket revenues from the top 100 concert tours of 2023 jumped to a record US$9.17 billion (S$12.3 billion), industry magazine Pollstar reported in December 2023.
Industry players say a strong government mandate is needed to boost Malaysia as an attractive destination for concerts in the region, in the wake of Singapore hosting an exclusive six-show Southeast Asia tour stop for American pop superstar Taylor Swift earlier in March. The event sold more than 300,000 tickets and brought in thousands of fans from across the region.
Experts estimated tourism receipts for the Swift shows in Singapore at between $350 million and $500 million.
“Malaysia is a jewel in Southeast Asia. We have the largest stadium in Southeast Asia – the Bukit Jalil National Stadium – (and) we’re cheaper for tourists in terms of food, hotel room rates and transportation, compared with Singapore and Indonesia,” said Nur Jasni Mohd, founder of sports and events advisory company SportsWorks Group.
“We enjoy 30 % lower production costs than Singapore, so this is a good time to push for an overall nation-building plan that includes concert economics,” Jasni added.
Four concerts were scrapped in 2023, up from the two that were turned down in 2022, the Central Agency for Application for Filming and Performance by Foreign Artistes (Puspal) told The Straits Times.
Among the concerts that were not approved in 2023 were those planned for renowned Indian singer Karthik and the arts and music festival Pinkfish Live, featuring American rapper Lil Pump.
An industry source told ST that the American singer-songwriter Lauv’s tour in Malaysia slated for September 2023 was also cancelled due to heightened political scrutiny on concerts amid opposition by Islamists who were against foreign performers.
Malaysia University of Science and Technology economics professor Geoffrey Williams, who estimates the lost revenue at over RM1 billion, said “onerous regulations” were to blame. “They create risk and make it more difficult for event organisers to put on shows,” he told ST.
If the missed gigs had taken place, receipts from entertainment tourism – which includes all ticketed entertainment events – would have been up to a minimum of 30 per cent higher than the RM2.4 billion received in 2023, according to local live performance association Arts, Live Festival and Events Association (Alife).
Concertgoers who flew in from overseas alone generated more than RM800 million in tourism receipts, contributing about RM83 million in taxes, in 2023, said the association.
Industry players say a strong government mandate is needed to boost Malaysia as an attractive destination for concerts in the region, in the wake of Singapore hosting an exclusive six-show Southeast Asia tour stop for American pop superstar Taylor Swift earlier in March. The event sold more than 300,000 tickets and brought in thousands of fans from across the region.
Experts estimated tourism receipts for the Swift shows in Singapore at between $350 million and $500 million.
“Malaysia is a jewel in Southeast Asia. We have the largest stadium in Southeast Asia – the Bukit Jalil National Stadium – (and) we’re cheaper for tourists in terms of food, hotel room rates and transportation, compared with Singapore and Indonesia,” said Nur Jasni Mohd, founder of sports and events advisory company SportsWorks Group.
“We enjoy 30 % lower production costs than Singapore, so this is a good time to push for an overall nation-building plan that includes concert economics,” Jasni added.
The youth wing of Malaysia’s opposition Parti Islam SeMalaysia (PAS) had called for the concert to be cancelled, saying that the group promotes “deviant cultures”.
The concert went ahead, after strong pushback from moderate Muslims on social media, and Prime Minister Anwar Ibrahim stepped in to defend the band, saying it supported the Palestinian cause.
Nonetheless, instead of encouraging Southeast artists to perform in Malaysia, the government has been clamping down by adding more bureaucratic rules on the entertainment industry. Political analysts say this is part of the Anwar-led administration’s efforts to shore up waning support among the Malay Muslim majority, by taking steps to appease the more conservative voters who side with the opposition.
