In demand: With incentives and longer-term goals, the entertainment sector and music industry in Malaysia can grow further.
PETALING JAYA: Music industry professionals say the government incentive to encourage more local and international artistes to perform in Malaysia is a good start, even though they feel the amount allocated is insufficient.
Datuk Alan Foo, managing director of Star Planet and chairman of the Malaysian Association for Arts, Live Festivals, Concerts and Events (Alife), said the incentive was too small to make an impact.
“Frankly, RM10mil is far from sufficient. The incentive needs to be significantly more to drive meaningful growth in the industry,” Foo said.
Rosmin Hashim, chairman of the Recording Industry Association of Malaysia (RIM). - Photo: Courtesy of RIM
In the Budget 2026 tabled on Friday, the government allocated RM10mil in incentives to support the organisation of concerts by local and international artistes in Malaysia, aimed at attracting foreign tourists in conjunction with Visit Malaysia 2026.
Foo pointed out that concert organisers continue to face several major challenges, including high production and venue rental costs, as well as limited suitable venues that can accommodate audiences in the 8,000-12,000 person range – the capacity most in demand for large-scale concerts.
Other obstacles include rising artiste fees, regional competition and marketing expenses.
For Datuk Norman Abdul Halim, any form of subsidy is always welcome.
“When a concert is a sellout, promoters have already factored in all the costs involved.
“So the real question is – who benefits from this incentive? I believe it’s the consumers,” said Norman, who’s a concert organiser as well as a member of the popular trio KRU.
“If promoters treat this as additional revenue to offset their expenses, they could lower ticket prices, making concerts more affordable and encouraging more sales.
“In that sense, the subsidy would be very useful,” Norman said.
Similarly, Rosmin Hashim (pic), chairman of the Recording Industry Association of Malaysia (RIM), welcomed the move but described the RM10mil allocation as “relatively modest” given the size and potential of Malaysia’s live entertainment sector.
“I think the RM10mil incentive for concert organisers is relatively modest considering the huge positive multiplier effect investments by concert promoters have on the Malaysian economy,” he said.
He added that the government should take a longer-term approach when supporting the entertainment scene.
“With longer-term goals for the live entertainment scene and the larger music industry, the required financial allocation can be committed to effect real growth in these sectors,” he said when contacted.
In an earlier statement, Rosmin said that increasing funding for the music sector could generate substantial economic spillover effects, as the industry has strong potential to drive national economic growth.
“According to the PwC Malaysia Music Industry Economic Impact Study for the 2016 to 2020 period, the local music industry contributed RM19.4bil to the national economy, generated annual tax revenues of RM531mil, and supported an average of 111,000 jobs each year.
“This increase in funding would not only benefit music industry players but also stimulate related sectors such as live music events, broadcast media, entertainment venues, and tourism, thereby strengthening the ecosystem of the national creative industry,” he said.
