In a recent sentiment sweep conducted by BECM to understand the current state of Malaysian venues since the pandemic began in 2020, it was found that due to inability to operate, 100% of the venues experienced at least a dramatic 85% decrease in total events resulting in a minimum of 75% plunge in overall 2020 revenue compared to the previous year, causing their biggest concerns involving financial challenges surrounding employee wages, building utility and maintenance payments.
The venue sector alone employs thousands and as a primary player in its supply chain, its closures impact heavily on the rest of the supply chain
In a 2018 report by the Malaysia Convention and Exhibitions Bureau, the Business Events industry was expected to contribute RM3.9billion in the incremental of Gross National Income (GNI), thus providing about 16,700 jobs, by 2020. The venue sector alone employs thousands and as a primary player in its supply chain, its closures impact heavily on the rest of the supply chain, from hotels, destination management companies and tour operators to stand builders, contractors, retails, local produce suppliers, and part-time employment. This has had a major impact on the overall revenue contribution to the national economy generated through the business events supply chain.
According to a press release by the Kuala Lumpur Convention Centre, in 2019 alone the premier purpose-built venue conducted over 1,500 meetings and events welcoming over one million delegates and visitors generating an estimated economic impact of almost RM 1billion. Meetings and events were allowed to operate for a few short months in 2020 which saw the development of comprehensive new norm SOPs, successful execution of events through thorough and strict enforcement of the health and safety guidelines with venues investing in innovation and creation to expand their product and service range and diversifying business revenue, before the nation retreated into yet another strict lockdown restricting inter-state travel and banning meetings and gatherings into 2021, which dampened all efforts pushing the industry supply chain into further dire conditions with a constant struggle for survival.
Convention centres are an important social and economic infrastructure assets, elevating Malaysia’s competitiveness and its profile globally. Venues are more than just event space, they are a vital platform to deliver dialogue, commercial activity and business engagement. They are integral to a city’s growth and development, as an infrastructure asset to a city, a key economic driver to its trade, commerce, academia and social prosperity, ultimately leading to a country’s collective progress.