KUALA LUMPUR: The absence of competitive incentives in the past had placed Malaysia at a disadvantage compared with neighbours such as Singapore, South Korea and, more recently, Indonesia, says Communications Ministry’s deputy secretary-general Nik Kamaruzaman Nik Husin.
“Historically, Malaysia has struggled to attract internationally renowned artists due to a lack of competitive incentives that are commonly offered by other countries to entice large-scale concerts and events,” he said.
“Unlike global entertainment hubs, Malaysia did not provide extensive government-backed financial support such as tax exemptions, logistical subsidies or streamlined permit processing that could reduce operational costs for event organisers and international touring companies.”
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Without meaningful fiscal or logistical incentives, staging large-scale concerts in Malaysia was often viewed as financially risky, particularly given added beaureaucratic complications such as permit restrictions and regulatory hurdles.
This meant promoters often looked elsewhere in the region for tour stops that promised higher financial returns, better infrastructure, regulatory predictability and stronger marketing support.
One obvious example was US pop star Taylor Swift’s six-show Eras Tour in Singapore last year which generated between S$350mil (RM1.14bil) and S$500mil (RM1.64bil) in tourism receipts.
Other big names include Lady Gaga, who performed in Singapore in May this year, while Mariah Carey is slated to appear at the island republic next month. Carey, whose last performance in Kuala Lumpur was in 2018, skipped Malaysia for her current tour.
In light of these shortcomings, the government launched the Concert and Event in Malaysia Incentive (CEMI) in April.
Nik Kamaruzaman said CEMI not only helps organisers offset production costs but also ensures local industries benefit tangibly from international shows.
“By aligning financial incentives with economic and social objectives, CEMI represents a more holistic approach.
“It not only helps to attract big names but also contributes to ecosystem development by ensuring that Malaysians gain employment and experience through international-standard productions,” he said.
He acknowledged that CEMI is relatively new, so its long-term success will depend on consistent implementation, transparency in approvals and continual feedback from industry players.
“If properly administered and paired with broader reforms, such as regulatory streamlining and infrastructure upgrades, CEMI could mark a turning point in Malaysia’s journey toward becoming a vibrant regional hub for world-class entertainment events,” he said.
Nik Kamaruzaman also acknowledged that past controversies, such as the one which erupted during the July 2023 concert by British band The 1975, had dented Malaysia’s image among Western promoters, who feared backlash or cancellations due to cultural sensitivities.
(Matty Healy, The 1975 frontman, had slammed Malaysia’s LGBT laws and kissed a male bandmate onstage.)
Nik Kamaruzaman said the government has since moved to address such concerns with the launch of the updated Puspal Guidelines (GPP 6.0) in May.
The new framework, Nik Kamaruzaman said, introduces a “kill switch” allowing authorities to stop performances if rules are violated, while also streamlining legitimate procedures.
“This initiative aims to enhance predictability, eliminate bureaucracy and regain promoter confidence,” he said.
