Applause, not pause, for more concerts

Another challenge the industry faces is the entertainment tax imposed on events hosted by concert organisers. – 123rf.com

THERE’S been a lot of noise about concerts in Malaysia lately.

Even as the industry is trying to light up the stage again after a two-year pause caused by the Covid-19 pandemic, concert organisers have had to deal with calls against foreign acts performing in Malaysia.

This led to the Association of the Arts, Live Festivals and Events (Alife) speaking up and asking for politicians gearing up for the general election to stop using concerts as leverage at the expense of the industry.

“Have we forgotten the job creations, cultural impact and tourist arrivals that spring from these events and international shows?” asks Alife president Rizal Kamal in a statement backed by 44 event organisers in Malaysia.

Calling for an end to divisive politics, the group highlights that some event organisers are already looking to build their business in neighbouring countries instead of Malaysia as they are welcomed there instead.

To be more relevant to current needs, the Communications and Multimedia Ministry tells Sunday Star that it will be updating guidelines on concerts by foreign artistes. The new guidelines, which will consider all sensitivities involving Malaysians, is expected to be published by the end of this year.

Last month, PAS Youth urged the government to cancel all upcoming concerts featuring foreign artistes or face protests from them. Joining in the chorus, Federal Territories Minister Datuk Seri Shahidan Kassim said on Sept 4 that concerts in Kuala Lumpur will be reviewed to ensure they are suitable for the public.

He later backtracked on this, saying that the authorities will only step up their review of concerts that have yet to be approved to ensure they “instill good values among Malaysians”.

When contacted, Communications and Multimedia Minister Tan Sri Annuar Musa says it all boils down to the guidelines and approvals: “All concerts involving foreign artistes must follow the fixed guidelines.

“Such performances must be approved by the Central Agency for Application for Filming and Performance by Foreign Artistes (or Puspal according to its Malay acronym, which comes under the ministry).

“Puspal involves 16 agencies, including the Department of Islamic Development Malaysia [Jakim], which needs to screen certain aspects first before granting approval,” he says.

Ensure guidelines are clear

Meanwhile, those in the business are hoping for more support to aid their recovery, including doing away with the 25% entertainment tax that eats into their costs of organising events.

Alife chairman R. Para also hopes the new Puspal guidelines will be clearer and more industry- friendly. More concerts can be held in Malaysia if the government could provide clear approval guidelines without any political interference, he says.

“Industry players are well aware of their responsibility in ensuring all guidelines are followed and all permits are in place.

“This includes the type of content and dress code for performances taking place in Malaysia.

“It’s a tedious process but most promoters are willing to toe the line to ensure they will stay in business.

“The only downside is even after getting the necessary permits and approvals, there could be instances when the show is called off due to political pressure and sensitivities that are not stated in the current guidelines,” he points out.

Para, who is also the founder of concert organiser PR Worldwide Sdn Bhd, says the live events industry has been bouncing back since the reopening of Malaysian borders in April.

“There has been almost 100 local and international events announced, covering music of various genres and arts and culture.

“This includes big touring stars like singers Billie Eilish and Justin Bieber, as well as K-pop group Blackpink, which have chosen Kuala Lumpur as its stopover city, putting us on the world map of the live music industry,” he says.

He brushes off calls to cancel performances by foreign acts, saying that there is no substantial proof that concerts are a cause of moral decay in Malaysia.

Concert promoter Intour Live managing director Bonor Seen also dismisses the view that concerts encourage hedonism, as claimed by PAS Youth.

“As a developing country, we should be more open minded. We share similarities with neighbouring countries such as Indonesia, Singapore and Thailand.

“If these countries can run the live entertainment industry without interrupting racial, religious and social harmony, I believe we can do the same,” he says.

With the live events business recovery moving in a positive direction, Seen believes more shows should be held to keep the momentum going and bring in more revenue to grow the country’s economy.

A taxing problem

Another challenge the industry faces is the entertainment tax imposed on events hosted by concert organisers. The tax is imposed by state governments and local authorities at various rates; in Kuala Lumpur and Selangor it’s 25%.

Malaysian Artistes Association (Karyawan) president Datuk Freddie Fernandez believes that removing the tax would give the industry a great boost.

“This is because it will translate into lower ticket prices and make shows more affordable.

“Failure to do so would make it practically impossible for promoters to survive,” he says.

Currently the tax has been waived temporarily to assist promoters recover but Fernandez hopes this will become a permanent arrangement – otherwise, it could lead to the industry’s demise.

“The government should also look at waiving the high deposits charged by local councils, especially for the smaller venues.

“These places are particularly used by theatre groups and niche events such as jazz and stand-up comedy where the organisers are small production companies working on very tight budgets.

“Rental rates for venues owned by the government should also be reduced to allow the industry to recover and flourish after what it has been through the past two years,” he says.

From a moral standpoint, Fernandez believes that concerts are purely musical events which seek to entertain and don’t have negative undertones.

“So we fail to understand the objection to staging these concerts.

“We wish that politicians would understand the hardship that the people in the industry have had to face for the last two years,” he says.

Echoing the calls to abolish the entertainment tax, Para compares the current 25% tax here with Singapore and Thailand (specifically, Bangkok) : each country only imposes a rate of 7%.

“The sales and service tax should be applied instead in Malaysia to all entertainment services,” he says.

Currently, the sales tax is 5% and 10% depending on the category, while the service tax rate is 6%.

Calling the “live” experience of a show irreplaceable, Para says streaming a concert online is only supplementary to some areas of the industry.

“Fans want to go on a journey, from buying tickets, getting into the venue and feeling the atmosphere in the company of fellow fans.

“They also get to enjoy all other parts of going to an event like buying merchandise, food and, of course, watching the live performance of their favourite artiste on stage,” he says, describing the joys of attending such events.