The Malaysian Insight

PUTRAJAYA must engage with nightclub operators to discuss standard operating procedure (SOP) to allow the entertainment sector to reopen, business owners said.

They told The Malaysian Insight that while they don’t expect to be allowed to open immediately, they want to get the ball rolling on discussions at the very least.

Nightclubs, they said, are often misunderstood as a venue where shady business takes place, when in reality they are a sector that employs a large number of people and contributes to the economy.

“The public and the government think that nightclubs are dodgy KTVs with girls sashaying around,” Jeremy Lim, vice president of the Restaurant and Bistro Owners Association told The Malaysian Insight.

“Nightclubs are entertainment outlets, they are dance clubs.”

Nightclub owners were looking forward to reopening their businesses after 19 months of closure when Kuala Lumpur moved to phase 4 of the national recovery plan on October 18.

The National Security Council has, however, placed entertainment outlets and pubs in the negative list, prohibiting them from resuming business.

Lim said by the association’s estimate, about 40% of the entertainment licence holders have switched to become restaurants in order to sustain themselves.

When asked how many entertainment licence holders are there, he said there is no definite number of outlets because they can’t tell which businesses are hibernating or have shut permanently.

“The whole of TREC (a designated entertainment zone) are our members and it contributes to 60% to 70% of the nightlife in KL.

“So many have either closed or are hibernating it is hard to tell how many are left.

“The closure of the sector has affected about 250,000 direct and indirect employees,” he said.

Lim, who also owns the nightclub DragonFly, said the hesitancy on the part of the government most likely stems from the fact they are not well-versed in how the industry operates.

Therefore, he said, it is of utmost importance that the government contacts nightclub owners to get their input and together come up with a plan that is best suited for all.

“The ask from us is for them to engage with us on how we can accommodate the reopening during the endemic setting. They need reassurance and we need reassurance.

“I’m sure they have concerns, and so do we. We have to come together and discuss. They may not be familiar with the industry, so they should let us table our thoughts and come up with proper SOP and guidelines,” he said.

Lim added that he is not naive to believe that once there is engagement, the sector will be allowed to resume immediately, but at least this means there is light at the end of the tunnel for business owners.

His association is planning to meet with three ministries – Domestic Trade and Consumer Affairs, International Trade and Industry as well as Fiinance – in the coming days and weeks to discuss the matter.

Another issue that frustrates Lim, is the fact that larger club owners have not spoken up about this issue, mainly because they have deep pockets to sustain longer periods of lockdowns.

Zouk in KL is owned and run by Genting Group and Wicked at W Hotel is owned by Benson Tay of Focus Dynamics Group Berhad, Dion Tan of Tropicana Corporation Berhad and Morvin Tan of Berjaya Corporation Berhad.

Lim had 109 employees in his club, but due to the prolonged closure, he had to let go of 70 of his employees.

“I have no choice. We will open one day, and when that happens we will reemploy them. In the meantime, I have asked them to find other jobs.”

Thankfully for Lim, his landlord has agreed to give him a moratorium on his rent.

“I’ve been closed for 19 months, and I owe in excess of RM1 million in rent. We’ve also lost millions due to the closures.

“But we’re not even looking at that anymore. We’re looking at the debts incurred during the pandemic.”

Lim said he expects it will take the entertainment sector 18 to 24 months to get back on its feet once they are allowed to open again.

“If there are no drastic policies by the government, in 18 to 24 months we can be back to normal.” – November 6, 2021.