The Malaysian Insight

AFTER three months with zero income, entertainment outlets have appealed to state governments for permission to reopen.

The Malaysian Insight learnt that the Johor and Sabah governments have been approached by the owners of these outlets, among them karaoke lounges, pubs, nightclubs and massage parlours.

Putrajaya has allowed most business sectors to reopen under the recovery movement-control order (RMCO), but entertainment outlets, which usually attract large crowds, have still not received the green light.

Johor Entertainment Centres Association president Tan Yam Meng said such outlets have been closed since the MCO took effect on March 18 to stem the spread of Covid-19.

“Entertainment outlets nationwide are very nervous. They’ve stopped operating for three months.

“If they can reopen only on August 31, at the end of the RMCO, it means that they would’ve been out of business for more than five months.

“No business or industry can sustain with zero income for that long. They cannot survive.”

He said the association has submitted a memorandum to Prime Minister Muhyiddin Yassin, the Johor menteri besar’s office, Johor Baru Chinese Chamber of Commerce and other parties.

“Our memorandum states that the entertainment industry will abide by the basic standard operating procedures formulated by the government.

“At the same time, we have also developed a set of SOPs for the industry. For example, the original 10-person box seating will be restricted to a maximum of six customers.

“Tableware and cutlery will be sanitised, and the box will be immediately sanitised once a group leaves and before the next batch comes in.”

There are about 800 licensed entertainment outlets in Johor, of which 20% to 30% have chosen to close up shop.

“Rental, employee salaries, and even the owners’ living expenses cannot be maintained, so the businesses cannot be sustained,” said Tan.

Income to decline due to SOPs

Sabah-Labuan Motion Picture Traders and Entertainment Association chairman Peter Chow said members met the state government last week to discuss the matter.

“All of them have had zero income since the MCO was enforced, and it is tough for them.”

He said there were some 700 entertainment venues in the state prior to the movement curbs, but many have been shuttered since.

“A large-scale karaoke joint requires a monthly operating expenditure of at least RM100,000, a medium-sized one about RM80,000, and small one about RM20,000. This is to pay rental and salaries. But now, they have no income at all.”

Even after entertainment outlets are allowed to reopen, he estimated that the sector will be able to recoup only 50% of its revenue due to social distancing and reduced capacity.

“There will be a limit on the number of people in private boxes and lounges, so the business volume will naturally decline. But it is definitely better than zero income. It also allows employees to resume work.”

Upskilling workers

Amid the economic downturn, popular karaoke chain KTV RedBox has temporarily closed eight branches nationwide.

Marketing manager Lim Hai Song said the company hopes to resume operations once the virus crisis is under control.

“After all, karaoke is an enclosed space, and consumers will inevitably worry about the possibility of infection. So, it is better to wait until the outbreak is really under control and restore consumer confidence.”

To cope with expenses, he said, the firm had considered providing food takeaway services.

“But we don’t want employees to go back to the store and risk getting infected.

“Karaoke is our main product, and food is secondary. If we sell food alone, the response won’t be good. So, we decided to scrap the idea.”

At the moment, employees are undergoing training to boost service quality when branches eventually reopen, he said.

“They usually don’t have time to take a day off for training. We took advantage of this situation to arrange various training sessions for chefs, waiters and other employees. The training includes drink-making and cooking courses.”

He added that all RedBox outlets have been disinfected in line with government SOPs. – June 12, 2020.