A week after revealing there is plenty of room for growth in Malaysia’s sports industry, the nation’s Chief Statistician, Datuk Seri Dr Mohd Uzir Mahidin, said the Department of Statistics Malaysia (DOSM) is working towards releasing the Sports Satellite Accounts for 2023 and 2024 by the third quarter of the year.
The Sports Satellite Account is a formal and comprehensive statistics component that will be used as a guide to determine the valuation of the sports industry and how it contributes to Malaysia’s gross domestic product (GDP).
Speaking to Twentytwo13, Mohd Uzir said he expects the 2023 and 2024 reports to show even better results for the sports industry, compared to the 2022 report.
Asked why there was a delay in the 2023 report, Mohd Uzir said: “We wanted to combine the results over two years to gather better data about the sports industry in Malaysia.”
“Not many people understand what the sports industry means. Some think it is merely about hosting events, but there are many spillover effects that many don’t see.
“For instance, if we were to host an event, it would affect tourism, the food and beverage, and hotel industries, among others.”
He added that there would also be an increase in demand for transportation and other benefits, such as for traders who make merchandise or souvenirs that go on sale.
Mohd Uzir said critics often look from the perspective of how many people turned up at the stadium. “They complain about how much was spent to organise an event, without realising that there are other benefits and economic returns,” he added.
An example of the ‘beneficiary’ of these unseen benefits was the 2022 Malaysia Open badminton tournament, which was estimated to have generated at least RM20 million in merchandise and other transactions.
Mohd Uzir also cited the example of ‘branded marathons’ – such as those in Boston and New York (United States), London (England), Berlin (Germany), Tokyo (Japan) and Sydney (Australia) – that sell out very quickly.
“Even our own Kuala Lumpur marathon has become a sports tourism destination. Entries are full hours after registration is open,” said Mohd Uzir, a keen runner.
“Lots of these competitors travel with families, who spend their time in the country.”
The 2022 report, released on May 31, 2024, showed that Malaysia’s sports industry generated RM49.5 billion to Malaysia’s economy, with a gross value added of RM19.6 billion while employing 194,400 people. Other findings of the 2022 report include:
- The sports industry contributed 1.1 per cent to Malaysia’s Gross Domestic Product in 2022.
- Sports services and sports trade grew at 15.9 per cent and 16.3 per cent respectively.
- Export of sports products was RM11.5 billion.
- Import of sports products was RM6.1 billion.
The Sports Satellite Accounts for 2023 and 2024 will provide a detailed overview of the growing economic impact of the sports industry.
By linking sports events to sectors such as tourism, hospitality, and retail, these accounts aim to help policymakers and industry leaders make informed decisions.
