Malaysia has hosted a series of concerts and live entertainment shows throughout 2022.
Following the relaxation of various measures to curb Covid-19, more big acts are scheduled to perform in the Southeast Asian nation next year.
However, those bringing in such acts into the country are asking for some clarity over the entertainment tax imposed by local councils.
“It affects sports as well. Anything that is ticketed will be deemed as ‘hiburan’ (entertainment),” said Arts, Live Festival and Events Association (ALIFE) chairman, Paramanathan Rajagopal.
“Selangor has implemented a 25 per cent entertainment tax… for Kuala Lumpur, they are telling people it is also 25 per cent, but they are not asking promoters to pay yet. We need some clarity, if they are going to look into our appeals (of reducing the amount) or if they are sticking with the 25 per cent.
“We need to do our budget for the coming year.”
The then deputy Communications and Multimedia minister, Datuk Zahidi Zainul Abidin, in July, had said that his ministry would meet stakeholders, including state governments, to discuss the proposal for the entertainment tax to be cut, or reduced.
In August, Kuala Lumpur City Hall told Twentytwo13 that it has not held any discussions with the ministry regarding the reduction or the removal of the entertainment tax.
It remains unclear if the new Communications and Digital Minister, Fahmi Fadzil, has been briefed about the matter.
“If they are sticking to 25 per cent, a lot of people are not going to bring in events here,” said Paramanathan, who added that the entertainment tax should be about five per cent.
He also urged the authorities to re-examine the approval process, adding that it was time to simplify things in this day and age.
“Take Singapore, for instance. You can do everything online. You can get a police permit online, and a council permit online.
“Here, you would have to physically go to the office despite having filled out forms. We go to Puspal (the Central Agency for Application for Filming and Performance by Foreign Artistes) for a meeting and there would be representatives from the police and the local councils, among others. And although they were there, a week or two before the event, we would still have to meet the same police officer we had met at Puspal earlier, this time, at the police station.”
He said there’s been a rise in the number of applications of acts wanting to perform in Malaysia and Puspal cannot handle the volume.
“Easily, there were 600 applications (throughout 2022), but not all were approved. There are many events, performers from Indonesia, India, all wanting to perform in Malaysia.
“If there is a way where organisers are empowered … that would be great. Give them the guidelines, they tick the boxes, submit the applications, and get a reply within the stipulated time.
“If the organiser makes fraudulent declarations, then they should be blacklisted or fined. This pushes back the responsibility to the organiser and upholds transparency, as all declarations and decisions are there in the public domain.”
He said the industry should be regulated by industry players. This would ensure that the organisers acted responsibly.
“These are just some of the new suggestions we would like to raise with the new government, and hope that this will see the setting up of a live events advisory council,” he added.
Paramanathan reminded stakeholders to look at the bigger picture of how events can contribute to tourism and to the nation’s economy.
“Just look at the World Cup in Qatar and the spillover effect. It’s the same with concerts and events, too,” he added.
