Cendana Report Web 06 - 02 - 18

KUA L A L UM PU R
A S A CU LT U R A L
& CR E AT I V E CI T Y

CO NTE NTS
Foreword by the Prime Minister of Malaysia 3
Foreword by CENDANA Chairman 4

Foreword by CENDANA CEO 5
Introducing The Cultural &
Creative Economy Report 6
The Approach & Data Gathering 7
Executive Summary 8
The Key Sectors Driving

Kuala Lumpur’s Cultural & Creative
Economy Today 12
Consumer Demand Survey 37
Building Blocks 40
Opportunities 44
Potential Actions 50
F o r e w o r d by t h e P r i m e M i n i s t e r o f M a l ay s i a
K U A L A L U M P U R A S A C U LT U R A L A N D C R E AT I V E C I T Y
FOR E WOR D BY T HE PR I M E
M I N IST ER OF M A L AYSI A
Malaysia’s transformation towards becoming a high-income nation must not only include the knowledge
economy and digital economy, but should also encompass a reinvigoration of our cultural economy. As Malaysia
aims to transform itself from a developing nation to a developed nation, it is paramount that we advance our
cultural economy and leverage on its tremendous potential for the benefit of our creative talents in addition
to providing spiritual fulfilment for us, the soul of a nation and give meaning to our collective identity. This is
Malaysia’s next vital journey.
Over the last few years the government has introduced new policies and mobilised tactical investments to spur
creative activities in the country. Today we launch the KL as a Cultural and Creative City report to revitalise our
cultural sectors, synergising with the creative industries and propel us further with the aim of positioning KL as
an internationally-recognised creative city. The report should serve as a guide for practitioners, stakeholders,
and investors to better understand Malaysia’s long-term prospects and medium-term priorities. Our 5-year
aim is for us to create more than 125,000 jobs and enable the industries to account for 3% of Kuala Lumpur’s
GDP. These efforts will not only benefit Kuala Lumpur communities and projects such as the upcoming
development of Bandar Malaysia, TRX, Vision Valley, and River of Life, but also enhance the cultural landscape
of the entire country.
I call upon the public stakeholders to work with us in building this vision for our cultural sectors, to review the
current policies, regulations, and framework to encourage and catalyse the growth of our arts and culture, and
I call upon the private stakeholders to do the same by working with CENDANA to address various gaps in the
ecosystem and increase opportunities for our cultural sector. And I call upon the industry, to join in this effort.
Our success as a nation cannot be solely judged by its skyscrapers and highways, but also by its citizen’s
sentiments towards their nation, as reflected in the arts. This is an investment for our nation’s heart and soul,
promoting culture as our new asset and the government is fully committed.
Y.A.B. DATO’ SRI MOHD NAJIB BIN TUN HAJI ABDUL RAZAK
PRIME MINISTER OF MALAYSIA
3
Fore word by Cendana Chairman
FOR E WOR D BY
CEN DA N A CH A IR M A N
The arts is as much our identity as it is our trade. Today, the global creative economy is growing rapidly and
increasingly intersecting with urban development, technology, and tourism, thus putting Malaysia in a strategic
position to gain from this robust economy.
In 2016, the Kuala Lumpur cultural and creative industry contributed RM11.2 billion to the country, accounting
for over 2% to the Kuala Lumpur economy and with over 86,000 jobs. In developed countries, the cultural and
creative economy contributes 3%-6.9% to their nation’s economy. This is the market and potential of which
Malaysia can leverage on and optimise to complete Malaysia’s transformation.
The KL as a Cultural and Creative City report is our strategic effort towards claiming a place in this global
cultural and creative landscape. Each cultural sector will be vitalised with strategic funding and programmes
to meet specific goals over the next five years. The efforts will encompass the following 5 building blocks: (1)
Cultural & Creative Education: Create A Creative Workforce, (2) Creative Hubs & Infrastructure, (3) Nurturing
The Market, (4) Business Support & Investment, and (5) Creative Place-making, Liveability & Tourism. Kuala
Lumpur is earmarked to be developed into an internationally-recognised creative city, which will increase the
attractiveness of Kuala Lumpur and its surroundings for tourists, talent, and skilled workers.
With the KL as a Cultural and Creative City report and the establishment of the Cultural Economy Development
Agency (CENDANA) working closely with stakeholders in the cultural industries, Malaysia’s future promises to
be vibrant.
YBHG. DATUK SERI AHMAD FARID RIDZUAN

CHAIRMAN, CULTURAL ECONOMY DEVELOPMENT AGENCY (CENDANA)
4
F o r e w o r d by C e n d a n a C EO
FOR E WOR D BY
CEN DA N A CEO
Malaysia’s vibrant arts scene is set for a surge with the KL as a Cultural and Creative City report. We can look
forward to strategic and tactical developments in how culture is experienced and how the arts can transform
the look and feel of a city like Kuala Lumpur and its surroundings. The Cultural Economy Development Agency
(CENDANA) continues to work closely with experts, practitioners, and other stakeholders in the cultural
industries to ensure our collective vision of building a vibrant, sustainable, and ambitious cultural economy for
Malaysia becomes a reality.
The report outlines a range of opportunities before us and a pathway to achieve success. The next five years will
be exciting as we mobilise our assets to develop, promote, and present our cultural assets to wider audiences
and thus increasing the value of creative jobs and making our cultural economy far more competitive.
Energise, empower, reorganise. These are CENDANA’s strategic goals, which also aims to facilitate cooperation
between the public and private sectors to ensure cultural sectors are amongst priority agendas in development
policies and investments. Through strategic partnerships between public and private sectors, more platforms
for sustaining cultural activities can be established. Similarly, learning opportunities for arts practitioners can
be created as a move to upskill our local talents.
Our gratitude goes to all our partners who have made the KL as a Cultural and Creative City report possible –
Hasanah Foundation, Ministry of Communications and Multimedia Malaysia, Yayasan Sime Darby, ThinkCity,
MyCreative Ventures, British Council Malaysia, Tom Fleming Creative Consultancy, My Performing Arts
Agency, and Frost & Sullivan Malaysia - and also not forgetting the Executive Advisory Committee and the
Industry Advisory Panel. Thank you to our stakeholders and to all who have participated in the study and our
sincere appreciation also goes to our friends in the media who have always supported arts and culture as well
as CENDANA.
Together we can create a collective impact and secure Malaysia’s place on the world’s cultural map. With the
KL as a Cultural and Creative City report in our hands, we can confidently move forward with a stronger, well-
defined trajectory.
IZAN SATRINA DATO’ MOHD SALLEHUDDIN

FOUNDING CEO, CULTURAL ECONOMY DEVELOPMENT AGENCY (CENDANA)
CENDANA is positioning itself as an umbrella body with enough resources and expertise to reach and
improve the cultural sector of the creative economy. With a large and growing amount of data, CENDANA
will be able to see the big picture and diagnose the effects of one part of the ecosystem on another,
funnelling aid where it is needed. As a government initiative, it is assured of being able to work for
a meaningful amount of time. This allows for the initial experimentation needed in beginning this huge
undertaking.
CENDANA will act as a connector between creators, regulating bodies, private investors or businesses,
policymakers and consumers. To nurture these entities individually so that they are healthy, while keeping
an eye on the larger goals and continually refining strategies based on evidence.
5
Through its efforts, CENDANA aims to transform Malaysia into the cultural destination that it should be.
INTROD U C IN G THE C U LT U RAL a n d C REATI V E EC ONOMY R e p o r t
INTRODUCING THE CULTUR AL
A ND CR EATI V E ECONOMY R EPORT
This report is an evidential analysis of the cultural and creative economy of Kuala Lumpur and the Klang Valley (hereinafter
referred to as Kuala Lumpur or KL) and a proposed action plan to establish it as an internationally-recognised creative city
that drives growth and contributes significantly to the Malaysian economy.
This project was initiated by ThinkCity and British Council Malaysia. Following that, other public and private partners also
participated, and this included CENDANA, the Ministry of Communications and Multimedia (KKMM), Hasanah Foundation,
Yayasan Sime Darby, and MyCreative Ventures. This was undertaken by a consortium comprising My Performing Arts
Agency (MyPAA), Frost & Sullivan Malaysia, and Tom Fleming Creative Consultancy, a leading international expert on the
cultural and creative economy. It was initiated in recognition of Kuala Lumpur’s immense potential for development and
growth in this sector.
This report will:
1. Describe and profile the dynamics of Kuala Lumpur’s cultural & creative economy
Firstly, it will attempt to measure the baseline of the cultural and creative industries for Kuala Lumpur. Available data and
evidence is presented for key sectors as outlined in the “Key Sectors Driving Kuala Lumpur’s Cultural & Creative Economy
Today” section. Information derived from extensive qualitative research will outline sector performance, value chains, and
the supporting landscape. It will also explore demand, analyse needs, and build sector engagement.
2. Analyse opportunities and key challenges towards establishing Kuala Lumpur as

an internationally-recognised cultural & creative city
The report will define and analyse Kuala Lumpur’s position against cities which already have established cultural and
creative economies. It will present an overview of the developmental needs for the various sectors and the economy as a
whole.
3. Recommend primary action steps to be taken to build Kuala Lumpur as an

internationally-recognised cultural & creative city by 2022
The report will propose, outline, and recommend possible action steps for CENDANA and other stakeholders who are
currently active in building or developing the cultural and creative industries. This will also encompass actions that would
propel Kuala Lumpur to specifically develop clusters and networks, build a distinctive cultural tourism sector, and mobilise
market development. In addition to catalysing Malaysia’s cultural and creative economy, such activities could also animate
and energise cross-sector collaboration and align sector growth and urban development agendas.
The data contained within and its technical appendices could well function as a key baseline and reference for the planning
and implementation of priority action steps towards developing these sectors.
6
T h e App r o a c h & D ata G at h e r i n g
THE A PPROACH &
DATA GATHER ING
The Data and Baseline Challenge
The lack of existing quality data and evidence on the cultural and creative economy in Malaysia remains
a challenging issue, with serious gaps and a lack of consistency in measurement. There is, for example,
very little data gathered at a district level or state level. In addition, micro-enterprises are often not
captured through existing approaches, and the informality of large parts of this economy (e.g. individual
arts and cultural practitioners) are not captured via official data collection. In addition, where data does
exist, it is not regularly updated; and there are inconsistencies in the quality of the data and regularity
of its collection between sectors.
The information contained in this report was prepared from publicly available materials and data
provided by industry stakeholders, including but not limited to regulatory bodies, local authorities, and
industry associations. Qualitative market information is also derived based primarily on interviews. The
working group collected input from more than 700 stakeholders consisting of:
• Face-to-face interviews and focus group discussions with 217 industry participants (including
regulators and education providers)
• Collected responses from 92 industry players via online survey
• Collected responses from 400 individuals as part of a demand survey
The research for this is an attempt to develop a clear overview of the existing data on Kuala Lumpur
based on a review of existing data and some gap-filling via qualitative research. But a genuinely
comprehensive and robust baseline will require reform of the approach to economic and cultural
data collection at government level. This led to the establishment of a Cultural and Creative Economy
Data and Evidence Review, a technical steering group. A similar approach was undertaken in the UK
after the first Creative Industries Mapping study (which used existing secondary sources); enabling
the development of a new measurement system to underpin the Creative Industries Mapping Study
of 2001. This has enabled over 16 years of consistent sector baseline mapping at a national level
with scope to generate local and regional data. In turn, creative economy policy has been genuinely
evidence-based.
7
Ex ecu t i v e Su m m a r y
EXECUTIVE SELAYANG
AMPANG
SUM M A RY
KUALA LUMPUR
SHAH ALAM
PETALING
KLANG JAYA
KAJANG
SUBANG JAYA
T HE V I SI O N PUTRA
JAYA
• For Kuala Lumpur to be among
the top 10 internationally-
recognised cities of culture
and creativity by 2022.
T HE OBJE C T IV E
• To create 125,000 jobs in the SEPANG
cultural and creative economy

sector in Kuala Lumpur by
2022.
Credit: ThinkCity
WHY DEV EL O P T H E C U LT UR A L & C R E ATI VE E CO NOM Y ?
The cultural and creative economy is one of the great global success stories of the past 20 years. While it is relatively an
emerging concept that is still finding its place within the interface between creativity, culture, economics, and technology, it has
real and tangible traction. Major nations and cities around the world are developing strategies and growth plans for their creative
economies, both as a competitive growth sector for the economy and also as a differentiating and unique cultural identity.
Broadly speaking, the sectors making up the cultural and creative economy are high-growth, resilient, intensively skilled,
and labour-intensive arenas. As formalised businesses, they also create higher skilled jobs with better remuneration
compared to the tourism and traditional manufacturing sectors, for example. Driven by original creative ideas,
they are also transformational across the board for people, places, and economies. Subsequently the downstream
supporting sectors such as tourism, financial services, and manufacturing are also enhanced, diversified, and innovated,
8 in turn making them more attractive to investors.
5-YEAR TA R G ET O UT CO M E (2 0 1 7 - 20 22)
GDP CONTRIBUTION (RM BILLIONS) OF THE CULTURAL & TOTAL EMPLOYMENT IN THE CULTURAL AND CREATIVE
CREATIVE ECONOMY TO KUALA LUMPUR ECONOMY OF KUALA LUMPUR
9
T HE SCOPE O F T H E C U LT U R AL & C R E ATI VE E CO NOM Y
A HOLISTIC UNDERSTANDING OF THE CREATIVE ECONOMY

BASED ON UK INDUSTRIAL STRATEGY & DEPARTMENT FOR CULTURE,
MEDIA AND SPORT (DCMS) DEFINITIONS OF CREATIVE INDUSTRIES
A R T S & CULT UR E CR E AT I V E
Heritage Literary Arts Film Virtual Reality (VR) Artificial

Intelligence (AI)
Conservation Visual Arts Television (TV) Augmented Reality
(AR) Robotics
Museums Performing Arts Media
Computer Gaming Digital
Archives Crafts Music
Digital media Design
Galleries Architecture Digitalisation
Libraries
T HE GRO W T H TH E R O LE
Globally, the cultural and creative economy has experienced The cultural and creative industry are some of the most
rapid growth in the 21st century. This stems from an increased dynamic growth sectors of world economies and present
demand for distinctive goods and services, including those excellent opportunities for new and emerging economies to
for leisure. This rising demand can be attributed to the world’s tap into high-growth sectors.
expanding middle-class consumers and increased disposable
income. The expansion of digital technology which isKuala Lumpur has great potential to develop its own high-
changing the landscape of content storage, distribution, and
value cultural and creative economy, which can potentially
production is another prime contributing factor. become a major contributor towards Malaysia’s GDP while
effectively promoting and strengthening the city’s distinct
cultural identity. It will also spearhead business opportunities
which can take advantage of the rapid advancement of
technology to expand the range of services
From 2000–2010, the Creative and to springboard into niche, high-value
Economy grew annually more than sectors.
twice that of the service industries
overall and more than four times that There are many cities across the world that
of manufacturing in many OECD and prioritise the cultural and creative economy
developing countries. as a driver for growth and competitiveness.
Their successes should be taken as key
The export of creative goods and examples of how we can grow Kuala
services reached $227 billion in Lumpur’s cultural and creative industries,
2011. Exports of Creative Industries develop our own distinct identity, and bring
services were recorded at $172 billion about the economic and cultural benefits
in 2011. they offer to our own shores.
The creative economy is estimated to

represent anywhere from 3% to 15%
of global GDP.
10
Source: United Nations Conference on Trade and
Development 2010
T HE OP P O R T UN IT Y A N D
T HE COMPET IT IO N
“The need to imagine and shape the future has “Adequately nurtured, creativity
become more acute than ever. We must create fuels culture, infuses a human-
shared visions for new ways of life, wider and more centred development and
ambitious…This makes developing and nurturing constitutes a key ingredient for
culture so much more complex – and more job creation, innovation, and
necessary. As the Mayor of Moscow has observed, trade, while contributing to social
cities used to fight for resources – now they fight inclusion, cultural diversity and
for creative, imaginative, talented people.” environmental stability.”
World Cities of Culture Forum, Moscow, 2016 UNCTAD Creative Economy Report, 2010
11

T h e K e y S ec t o r s D r i v i n g K u a l a Lu m pu r ’ s C u lt u r a l & C r e at i v e Ec o n o m y T o d ay
T H E K E Y SECTOR S DR I V I NG
K UA L A LUM PU R’S CU LT U R A L &
CR E AT I V E ECONOMY TODAY
Kuala Lumpur has the makings of a global hub. Already a However, the cultural and creative economy in Malaysia as a
major financial and education centre in Southeast Asia, it has whole is largely untapped, with growth disproportionate to its
much potential to diversify its economic drivers. immense and exciting potential.
• With a population of over 7 million • There is no formalised set of strategic,

and growing, it has the scale and structural, and regulatory system to
capacity to support further economic support and propel the growth of
diversification. This is also shored up the cultural and creative economy,
by a well-developed transportation especially in terms of business
hub. development and trade.
• It is ethnically diverse with a growing • Piracy and copyright infringements
international population, which still pose a big challenge.
together are creating a new distinctive
identity for Kuala Lumpur that • There is a need for more effective
interestingly maintains Malaysia’s championship and support of the arts
cultural heritage. and cultural sector.
• The city is vibrant and alive with • The culture of entrepreneurism

confidence and ambition, and a across the sector has not been fully
growing appetite to compete with developed.
other urban and developing cities of • Domestic and international markets
Southeast Asia as a major centre for for Malaysian creative goods and
trade, innovation, and culture. services are under-developed.
• Creative education is not valued as a
central pathfinder for personal and
professional development.
• Hubs, clusters, networks, and
professional bodies lack the capacity
and investment seen in well-
established economies around the
world.
“Unlocking the potential of the creative economy involves

promoting the overall creativity of societies, affirming
the distinctive identity of the places where it flourishes
and clusters, improving the quality of life where it exists,
enhancing local image and prestige and strengthening the
resources for imagining diverse new futures.”
United Nations Creative Economy Report, 2013
12
ADDRESSIN G G R O W T H IN 6 K E Y SE C TO R S
Cultural and creative economy growth is most pronounced in emergent economies and
particularly in those with access to large markets, strong global connections, distinctive, and
productive cultural sectors, and rapid digitalisation.
As an emergent economy, Kuala Lumpur is ripe for such growth and development with significant
potential. Highly distinctive, the cultural and creative economy here is the product of a unique
set of social and economic pathways. A confluence of different cultural identities, it is a complex,
polycentric and fast-changing urban system. Therefore, growing this sector in Kuala Lumpur
would require tailored, evidence-based, and partnership-driven approaches.
However, certain shortcomings need to be addressed as we develop said approaches:
To quote the late Steve Jobs:

We need to build a strong cultural sector
capable of inspiring audiences and generating
content for the creative industries. “Technology
alone is not
enough. It’s
We must champion the importance of creative jobs technology
in a competitive economic environment and increase
the legitimacy of creative industries as a major sector. married with
the liberal arts,
married with
Good planning as well as clear and fair regulations the humanities,
must be firmly in place. that yields us
the results
that make our
There must be easy access to high quality
creative education and professional
hearts sing.”
development programmes.
We must develop dedicated creative business

incubation and acceleration services.
The development focus of Kuala Lumpur’s cultural and creative economy outlined in this
report will primarily be on 6 key priority sectors. They have been identified as the most scalable
sectors of this economy and are critical to the health and vitality of the overall ecosystem. While
there are major overlaps and links between the 6 sectors, each one is internally diverse with its
own set of complexities and variables.
Overall, the key indicators which bring them together in this group of 6 are that they are
inspirational and instrumental as commercially-driven industries. They are also paramount
for nurturing creative talent; building audiences, and markets for creative goods, services and
experiences, and for increasing the attractiveness of a city as a place to visit, live, work, and
invest in. 13
T HE 6 K EY S EC T O R S A N D IT S VALU E P R OP O SI TI ON
FOR KUA L A L UM PUR
These 6 sectors form the first focus areas within the scope of this report, aligned towards the
cultural economies within the larger cultural and creative economy as a whole.
+ The lifeblood of the cultural and creative economy. These sectors play an inspiring role for creative
talent and audience development. They also generate content and distinctive aesthetic styles which
influence the approach of and identity for other creative sectors.
+ A major driver of innovation across the cultural and creative economy – e.g. in the use of digital tools,
in funding business models, and in animating public spaces.
+ A significant part of the creative workforce – of many micro-companies and freelancers, venues and
festival organisations, and major production companies.
+ Important drivers of cultural tourism – enriching the experience of the city.
+ Vital for a rich and inspiring cultural landscape + Central to the cultural and creative economy
which attracts visitors and builds culturally- – providing the narratives upon which other
literate citizens. sectors thrive (e.g. film and performing arts).
+ Significant generators of knowledge – nurturing + An early adopter of digital technology, generating

active audiences for culture and supporting new ways of producing, distributing, and selling
research activities in education. content.
+ Invaluable in connecting us with our heritage and + A key means to connect globally – linking
building a distinctive identity for Kuala Lumpur Malaysian narratives to universal reality and
with texture, personality, and a sense of belonging. increasing understanding of and access to the
wider Malaysian cultural and creative economy.
+ Important infrastructure for cultural development
and presentation; plus increasingly part of the
innovation ecosystem.
14
+ A major provider of employment – in non-metropolitan areas (production)
and metropolitan areas (sales).
+ Critical for the authenticity and provenance of the cultural and creative
economy – endowing character, depth, and diversity.
+ A driver of innovation across other sectors – influencing the aesthetic and

structural approach to activities such as architecture, fashion, and visual
arts.
+ An important contributor to tourism – giving personality to the offer and

unlocking revenue.
While the focus remains on the 6 sectors above, it is worth mentioning the following sectors
that contribute significantly to the overall cultural and creative economy output in KL.
+ Design is central to the innovation capacity and competitiveness of the overall

cultural and creative economy. It offers distinctiveness and connects aesthetic
and functional elements.
+ Design offers solutions to some of the challenges of large-scale urban systems

– e.g. how public services are run, traffic is managed, and liveability enhanced.
+ Product design and fashion are fast-growing parts of the economy – especially
in developing economies with expanding buying power.
+ Textiles activities are big employers and important contributors to cultural

distinctiveness – e.g. a convergence of Malay, Chinese and Indian influences.
+ The largest part of the cultural and creative economy – in terms of

jobs and GDP.
+ Broadly, the fastest growing part of the economy – especially in

digitally-driven sectors such as animation, gaming, and activities which
utilise virtual reality and augmented reality.
+ The most international sector – with value chains across the globe
and digitally-enabled collaboration connecting Malaysian firms to
colleagues in many other countries.
+ The most cluster-driven sector – co-locating to access talent,

knowledge, technology, connectivity, and investment.
+ A talent-hungry sector, with the highest proportion of graduate

employees and constant need for new entrants.
+ An innovation-hungry sector, with R&D the lifeblood of growth

and competitiveness due to the very rapid development of new
technologies.
+ The most convergent sector – relying on content, ideas, and talent from
15
across the cultural and creative economy and generating value for other
sectors (e.g. in innovation and scale for production and distribution).
BASE LI N E DATA , VA L U E C H AI NS & I ND U STR Y O VE R VI E W

FOR 6 KE Y S EC T O R S
PERFORMING LITERATURE & MUSEUMS &

SECTOR VISUAL ARTS MUSIC CRAFTS
ARTS PUBLISHING ARCHIVES
Contribution • RM113m • RM264m • RM31m • RM29.6m • RM585m • RM34m

to Kuala
Lumpur GDP
in 2016
Employment • 300 • 2,650 • N/A – included • 200 • 2,000 publishers • 270

in Kuala as performing and writers
arts
Lumpur for
2016
Education • 11 private • 7 private • 5 private • Public higher • 4 universities • For artifact/paper

higher-learning higher-learning and 4 public education offering BA in conservators:
institutions institutions offering institutions with institutions under Creative Writing there are currently
performing arts a music faculty 2 government no conservation
• 2 public degrees agencies: related courses
higher-learning • 2 music schools: in Malaysia.
institutions • 3 public higher- - Malaysia Handicraft Museums typically
learning institutes - Yamaha Music Development
• 44 art academies School (course accept candidates
offering performing Corporation with science
in Kuala Lumpur arts degrees structure currently (MHDC)
in use within 126 backgrounds,
• 114 performing arts independent and - Community such as diploma/
academies chain music schools Development degree in the
in Kuala Lumpur) Department biological sciences
(KEMAS) and chemistry,
- Bentley Music which are widely
Academy (2 available in
branches in public and private
operation) universities/
colleges
Funding • Government • Government grants • Under Dasar • Malaysia • N/A • Federal

grants – the Ministry Industri External Trade government:
of Tourism and Kreatif Negara Development RM85.2m in 2016
• Corporate Culture’s Cultural 2012-2014, Corporation’s
sponsorship Trust Fund has RM6.5 million (MATRADE) • Selangor state
disbursed grants was allocated Market government:
• Creative industry RM1m in 2016
ventures ranging from specifically Development
RM1k to RM50k for the music Grant of RM200k
to 61 recipients industry. for export
in the music and There are no promotional
performing arts programmes with activities
industry. similar purposes
after 2014. • SME
• As of 2016, Five Corporation’s
Arts Centre has Seed Capital
awarded 50 grants Scheme (Batik
totalling RM362k And Craft) of
to artists and arts RM20k-250k
practitioners.
• MyPAA’s Royal
Arts Gala awarded
grants totalling
RM718k & RM429k
in 2013 and 2015
respectively.
16
PERFORMING LITERATURE & MUSEUMS &
SECTOR VISUAL ARTS MUSIC CRAFTS
ARTS PUBLISHING ARCHIVES
Hot Spots • 30 visual arts • 31 performing • Approx. 80 • 3 key locations - • Petaling Jaya • 19 museums
galleries, mainly arts venues venues in Kuala Central Market, is home to 29 (public and
in Solaris across Kuala Lumpur that Kraftangan, Kuala publishing private)
Dutamas and KL Lumpur permit live Lumpur City companies
City Centre performances Gallery • 11 gazetted
• 16 publishing heritage sites;
companies set up and 6 non-
in Shah Alam gazetted sites
Main Events • Approx. 10 • Performances • Music festivals • National Crafts • Book fairs such • N/A
auction events throughout the such as Future Day as Pesta Buku
annually year Music Festival Selangor, Big Bad
Asia, Good Vibes, Wolf Book Fair,
Rock the World, etc.
KL International
Jazz & Arts
Festival, etc
Engagement • 65% visited art • 52% attended • 60% attended • 41% purchased • 54% purchased • 67% visited
galleries/art theatre live musical arts and crafts locally-authored museum(s)
exhibitions performances in performances/ products for own literature or
Kuala Lumpur concerts in Kuala collection reading materials
Lumpur
• 54% attended
independent
live music
performances in
Kuala Lumpur
Expenditure • Average spending • Average spending • Average spending • Average spending • Average spending • Average spending
per year: per year: per year: per year: per year: per year:
RM174 RM264 RM324 RM481 RM361 RM82
• Self funded: 69% • Self funded: 85% • Self funded: 87% • Self funded: 92% • Self funded: 98% • Self funded: 82%
• Free of charge: • Free of charge: • Free of charge: • Free of charge: • Free of charge: • Free of charge:
31% 15% 13% 8% 2% 18%
Satisfaction • 3.88 • 3.96 • 4.15 • 4.16 • 4.21 • 3.94
1=very unsatisfied 5=very satisfied
Source: Consumer Demand Survey (Page 37)
17
VALUE C HA IN
CONTENT CREATION SUPPORT DISTRIBUTION REVENUE
INCUBATION FUNDING PRIVATE GALLERIES/ AUCTIONS

• Residencies:- • Government grants COMMERCIAL GALLERIES • 5 notable auction houses in
• WOLO Artist Residency (in • Corporate sponsorship • Privately-owned galleries Kuala Lumpur
collaboration with Wei- • Creative industry ventures where sole revenue stream • As of December 2017,
Ling Gallery) • Self-funded is generated through the approx. RM9.2 million
• Rimbun Dahan sale of artworks and prints worth of art pieces were
• HOM Art Trans NETWORKING sold from four art auction
• TAKSU Kuala Lumpur • 4 Kuala Lumpur-based INTERIOR DESIGN houses
NGOs devoted to visual arts • Art galleries work with • 639 pieces were sold
• Private studios • Angkatan Seni Foto interior designers to seek
Wilayah Persekutuan out art pieces compatible GALLERY SALES
EDUCATION • Persatuan Artis Malaysia with the look of a particular • The National Visual Arts
• 11 private higher-learning • Persatuan Seni Rupa room: Gallery created 4 exhibition
institutions Malaysia • Segaris Art Centre spaces across Malaysia in
• 2 public higher-learning • Malaysian Art Archive and • Artfordable Gallery 2017.
institutions Research Support • From the beginning of the
• 44 art academies in Kuala year until May 2017, the
Lumpur • MyPAA (by connecting pieces on display were
• Self-taught/Private funders to artists) valued at RM3.15 million
with RM83k accumulated
VISIBILITY in sales from the spaces
• Galleries – 53 established in Kuala Lumpur established in Kuala
• University/school exhibitions Lumpur
• Exhibition listings – Kakiseni, lifestyle publications (Time Out KL,
TripAdvisor, etc.) MERCHANDISING
• Editorial write-ups – newspapers, lifestyle magazines (The Daily • Gallery souvenirs
Seni, etc.) • Art prints
BASE LI N E DATA
• Between 2015
and 2016, there
was a 1% rise
in local visitors
to the National
Visual Arts
Gallery. 86% of
visitors were
from outreach
programmes,
which proved
that successful
advertising of
art galleries can
lead to higher
visitor rates
annually.
• There are namely five art auction houses in Malaysia; Henry • Only 1% of
Butcher, KL Lifestyle Art Space, The Edge Galerie, Younie’s, visitors in
and Masterpiece. both years
comprised of
18 • Even though the number of art pieces sold was within the international
same range from 2015 to 2017, the value declined by 35% tourists.
from RM14.1 million in 2015 to RM9.2 million in 2017.
DRI V ERS
RISING SOCIAL + As an industry that relies heavily on visual aspects, social media engagement
MEDIA is important to visual artists. With photo-sharing social media platforms
ENGAGEMENT such as Instagram and Snapchat, particularly successful artists can rely
on a fanbase to increase the visibility of their works. Artists with social
commentaries in their works also find it easier to spread their messages
with the help of visitors who post and share photos of their art online.
Inevitably, an impressed audience is more likely to share the works of the
artists online.
+ The Malaysian art scene, despite a slow growth, is maturing into a

professional industry that has the potential to make it onto the world stage
and there are already Malaysian artists who are notable on an international
platform. The artistic community is continuously making concerted efforts
to take the visual arts industry further into the spotlight. One example is
Galeri Chandan’s Future of Malaysian Art project which is working towards
the culmination of a symposium that will discuss the direction and future
of Malaysia’s art scene.
REST RAI NT S
+ When the GST was introduced, the visual arts industry was
not spared. Art pieces on sale in private galleries are sold for
as low as RM500 and can go up to RM50,000, depending on
the size of the piece. As art pieces are not exempted from tax,
interested buyers have had to pay an additional 6%. Galleries
have reported a decline in sales due to the implementation of
the GST with one respondent admitting that revenue in sales
before GST had reached a million ringgit, but had dropped to
just about RM300,000 post-GST.
+ Malaysia’s art scene has come a long way in terms of progress,

but more still needs to be done to instil an appreciation
of the arts in students and children. Parents and teachers
acknowledge the role of art in child development, but have yet
to fully cultivate an interest in the arts beyond drawing lessons
and school curriculums. However, an appreciation of the arts
doesn’t have to stop at the student level; adults should also be
constantly encouraged to indulge in and appreciate the arts
in Malaysia. Kuala Lumpur is not short on art galleries and
with a wide range of activities available in the artistic arena,
fine art can be something families can enjoy and participate in
together.
19
CASE ST U DY – PU B L IK A
BEGINNINGS
Completed in 2011 as part of Solaris Dutamas’ integrated
malls initiative, Publika has positioned itself as the premium
arts hub in Kuala Lumpur. With a desire to be more than
just a shopping centre, they have played host to various
exhibitions in the arts since its launch. These exhibitions
have taken place in Publika’s White Box – a gallery space
that has displayed stunning pieces by notable artists (both
local and international) including Bayu Utomo Radjikin and
Paulo Grangeon.
SPOTLIGHT ON…
GALERI CHANDAN SEGARIS ART CENTRE
Having been around for seven years, Galeri Chandan has already Segaris Art Centre is an arm of UiTM that provides a platform
established itself as one of the key players in visual arts. Notable for UiTM graduates to reach a wider audience. They keep their
successes include the establishment of the bi-annual Malaysian exhibitions fresh by putting on a new one every month and
Emerging Arts Award and the Traveling Soul Project that shines include a fusion of seasoned artists as well as up-and-coming
a light on Malaysian artists on a global stage. Currently, they talent. Currently, they represent 200 full-time artists who
are working on The Future of Malaysian Art (FMA) project - a graduated from the Faculty of Art & Design.
movement that engages art enthusiasts on social media to share
their thoughts on the direction of Malaysian art in the future.
MAP FEST
MAP Fest is a month-long arts and cultural festival that starts with the Earth Hour in March to commemorate the anniversary
of MAP, an arts space that consists of White Box (gallery) and Black Box (theatre). The festival covers a variety of events from
music, visual art, street art, films, poetry, crafts, traditional cultural performances, design, and eco-workshops that are specially
catered to Publikans from all walks of life.
20
VALUE C HA IN
CONTENT CREATION SUPPORT PERFORMANCE
FUNDING TICKET SALES

INCUBATION
• Government grants • An estimated RM37.1 million in ticketing
• Residencies
- MOTAC’s Cultural Trust Fund has revenue was earned by the 3 largest
• Creative teams
disbursed grants ranging from RM1k theatres (Istana Budaya, klpac and
to RM50k to 61 recipients in the music DPAC) in 2016
and performing arts industry • For other smaller establishments,
PRODUCTION • Corporate sponsorships average ticket revenue per year is
• Scriptwriters • Creative industry ventures approx. RM50k
• Directors • Self-funded
• Set designers VENUE
• Costumer designers • 31 performing arts venues across Kuala
NETWORKING
• Actors Lumpur
• 28 Kuala Lumpur-based NGOs devoted
• Dancers
to performing arts
• MyPAA (by connecting funders to TOURING
artists) • P Ramlee the Musical went on to tour
Freelancers IN-HOUSE Penang, Johor, Malacca, and Singapore
• Currently 191 • Kakiseni (by publishing listings online)
• Puteri Gunung Ledang went on to tour
creative staff Singapore during its second season
members in Kuala VISIBILITY
Lumpur • Arteri
• Social media
• Events promotion by venues MARKETING
EDUCATION • Marketing is a missing component in the
• Editorial write-ups (Daily Seni,
• 7 private higher-learning institutions performing art arena. Perfomers often
newspapers, magazines, etc.)
offering performing arts degrees do not have the skills to market their art
• Events listing (Kakiseni, Time Out KL,
• 3 public higher-learning institutions
etc.)
offering performing arts degrees
• 114 performing arts academies in Kuala
Lumpur AWARDS & RECOGNITIONS
• BOH Cameronian Awards
BASE LI N E DATA
• Istana Budaya recorded the highest ticket sales, both • This chart depicts the revenue performance for the
in revenue and volume, in 2016 as the theatre hosted most popular shows held in Kuala Lumpur. It should
international acts. However, visitorship dwindled from be noted that MUD KL hosted two performances daily
205,428 in 2014 when P Ramlee the Musical returned for the duration of the entire year (excluding public
for a third season that year. holidays).
21
DRI V ERS
INCREASED + The Malaysian government recognises the positives of a flourishing

FUNDING creative industry and will allocate RM80 million to the creative industry in
OPPORTUNITIES the 2017 Budget. There are also grants provided by well-established theatre
companies that seek to help up-and-coming talent in the industry. Private
foundations such as Yayasan Sime Darby have recognised the benefits
of promoting the performing arts industry and have contributed RM18.4
million across several arts projects since 2009.
A CULTURALLY + Malaysia is recognised internationally as being a culturally-diverse society.

-DIVERSE This provides numerous and diversified opportunities for audiences of
AUDIENCE various cultures and backgrounds. An example of a production that brings
audiences together is MUD KL. It has been staged twice daily for two years
with a standard ticket priced at approximately RM83. This production raked
in approximately RM17.39 million in ticket sales and has been well-reviewed
by viewers.
REST RAI NT S
+ Living in a country that enjoys free-admission

entertainment, or at least entertainment at the lowest price
possible, locals would rather pay an average of RM12 to
watch a movie at a cinema than to attend a high-quality
stage production that would cost an average of RM30 per
person. On the other hand, stage productions that offer free
admission may not necessarily have enough funds to cover
the cost of the entire production and would find themselves
at a financial loss, thus creating a negative cycle.
+ Different theatre and dance companies focus on different

products. If utilised collectively and cohesively, this
could create a larger support network for everyone in the
industry. Currently there is no existing consortium that
plays a connecting and supporting role between the various
industry players. While companies do work with each other,
a consortium with common goals would further the cause
and propel the performing arts industry towards a more
exciting future.
22
CASE ST U DY – K L PAC
BEGINNINGS
Founded by Joe Hasham OAM and Dato’ Faridah Merican in 1989, The Actors Studio was established as the privately-owned
and operated theatre space in Plaza Putra, Kuala Lumpur. A flash flood occurred in 2003, which caused heavy damage to The
Actors Studio and from there klpac was born. The Kuala Lumpur Performing Arts Centre (klpac) was developed from a jointly-
owned platform comprised of Yayasan Budi Penyayang Malaysia, YTL Corporation Berhad, and The Actors Studio Malaysia.
IN 2017
Notes:
* Includes complimentary and sold ticket-holders.
** Inclusive of third-parties (venue hirers) and collaborated productions. A percentage of the ticketed revenue will be
channeled back to third parties and/or collaborators.
BUSINESS MODEL
Besides stage productions, klpac conducts corporate training, community outreach, and workshops for children and teenagers.
Its corporate training program uses physical activity and movement to foster confidence and team building skills for participating
organisations. Similarly, speech and drama classses are offered three semesters a year to children and teenagers. Both of the
above serve as additional revenue streams. In addition, its community outreach program, CORe, seeks to bring performing arts
to the underprivileged.
23
VALUE C HA IN
CONTENT CREATION & RECORDED MUSIC PRODUCTION FUNCTIONS
SUPPORT FUNCTIONS
TALENT SUPPORT PRODUCTION PROMOTION DISTRIBUTION

DEVELOPMENT
RECORDING LABELS • Recording labels RETAIL
MUSIC SCHOOLS NETWORKING • 396 music labels that generally handle • Tower Records
• Yamaha Music School • Malaysian Buskers provide recording the promotion and • Rock Corner
– course structure Club – has a and/or publishing marketing of an • Speedy – 40 outlets
currently in use within membership of services upcoming single/ in Kuala Lumpur
126 independent and approx. 12,000 album release. If
chain music schools • 5 Kuala Lumpur- not, this task will be
in Kuala Lumpur based NGOs devoted delegated to specialty
• Bentley Music to supporting local marketing firms.
Academy – 2 musicians
branches in FUNDING
operation PUBLISHING HOUSES
GOVERNMENT
• 3,848 lyricists
HIGHER EDUCATION • Dewan Bandaraya Kuala Lumpur has allocated RM16.1 million towards
and songwriters
IN MUSIC funding the arts and sports.
registered with Music
• Kuala Lumpur has 5 • The Ministry of Tourism and Culture have established a Cultural Trust
Authors’ Copyright
private institutions Fund (Tabung Amanah Kebudayaan). Applicants have to be approved by the
Protection Bhd
and 4 public Cultural Evaluation Committee (Jawatankuasa Penilaian Kebudayaan) prior to
(MACP) as of March
institutions with a being eligible for the fund.
2017
music faculty
• International College PRIVATE
of Music (ICOM) • MyCreative Ventures
• UiTM’s Faculty of • Content Malaysia Pitching Centre’s Production Fund
Music • Five Arts Centre: As of 2016, 50 grants totalling RM362k have been awarded
to arts practitioners
SELF -TAUGHT OR • Yayasan Sime Darby
PRIVATE LESSONS
LICENSING
MUSIC RIGHTS MALAYSIA* (MRM)
• The MRM is a non-for-profit organisation and the sole licensing body to
carry out collective music license issuance and fee collection activities
• The MRM represents associations like MACP, PPM, Recording Performers’
Malaysia (RPM), and Performers Rights & Interest Society of Malaysia
(PRISM)”
• The MRM offers 2 types of licenses - Single Event Public Performance
Licenses and Annual Public Performance Licenses
LOCAL COUNCILS (LIVE ENTERTAINMENT PERMITS)

• All entertainment premises in Selangor are required by state law to obtain a
permit by filling in forms in compliance with Peraturan-peraturan Hiburan
dan Tempat-tempat (Selangor) 1996
• Shah Alam City Council
• Dewan Bandaraya Kuala Lumpur
- The only council where a busking license is required prior to performance
EVENT PROMOTION PERFORMANCE
• Approx. 80 venues • Events management • Some F&B venues

in Kuala Lumpur companies or venues provide free
that permit live generally handle entertainment while
performances the promotion of a encouraging patrons
(including dining performance, along to purchase drinks
establishments) with the performers’ or tip the performer
• About 40 event social circles • Otherwise, tickets
management will be sold to the
companies audience
• Busking in public
areas
- 12,000 buskers
are members of the
24 Malaysian Buskers
Club
Note: As of 1st October 2017, Music Authors Copyright Protection Bhd (MACP) & Public Performance Malaysia (PPM) have phased out
issuing licenses altogether and the responsibility of collecting fees and issuing music licenses to events/establishments, etc. has fallen to
Music Rights Malaysia (MRM).
BASE LI N E DATA
MUSIC INDUSTRY REVENUE FROM PHYSICAL, DIGITAL,

AND SYNCHRONISATION SALES (RM MILLIONS), 2011 – 2016
• The Compound Annual Growth Rate (CAGR)

for physical revenue has been rapidly
decreasing at -3.05% annually, due to
the rising popularity of digital music.
• The rising popularity of digital music is

reflected in its CAGR that has been
increasing steadily at 0.97%.
• Synchronisation has maintained a steady

regression in revenue at a CAGR of -1.79%.
MUSIC INDUSTRY REVENUE FROM PHYSICAL, DIGITAL,

AND SYNCHRONISATION SALES (RM MILLIONS), 2011 – 2016
• The CAGR for Music Authors’ Copyright

Protection’s (MACP) revenue has been
experiencing a steady increase of 0.76%.
This is possibly due to a rise in interest in
the music field and the increased awareness
of the need to copyright intellectual property.
• Public Performance Malaysia’s (PPM) CAGR

experienced a decrease of -1.6%.
• The CAGR for the revenue of performers is

at a very slow climb of 0.02% annually.
TOTAL REVENUE OF THE MUSIC INDUSTRY

IN MALAYSIA (RM MILLIONS), 2011 – 2016
• The revenue in the music industry dropped

in 2013 before picking up again at a
significant rate. Overall, the CAGR from 2011
to 2016 was calculated to be at 0.61%. This
could perhaps be due to a renewed interest
in the ease and accessibility of purchasing
music on a digital platform.
25
Source: Recording Industry Association of Malaysia (RIM)

DRI V ERS
+ More companies are being set up to protect music composers and

musicians from intellectual property theft. These companies help
musicians earn what is rightfully theirs and allow them more freedom
to create content without having to worry about intellectual property
disputes. The Government has also lent their support in protecting
musicians in the form of MyIPO as of 2005. Additionally, companies
such as MACP or One Stop Music Malaysia offers legal protection and
representation of music labels.
+ The advent of digitised music has made music more easily accessible to
the public. Music streaming platforms have made it easier for consumers
to listen to music anywhere and at anytime. Meanwhile, sales platforms
like iTunes also offer consumers the option to purchase single tracks
of their preference instead of having to purchase an entire album. This
shift enables the purchase of a high volume of products (at a relatively
low price) and in the long-term, will increase overall revenue.
REST RAI NT S
+ One of the primary issues plaguing the music industry

is the lack of clear and concise guidelines regarding live
performances. This causes much confusion regarding
what is allowed and what is not and performers often
seem to run afoul with the controlling bodies. There
also have been last-minute cancellations of events with
affected performers reporting that they were not aware
of the guidelines they were said to have broken.
+ In Malaysia, international (non-Malaysian) students are INTERNATIONAL

allowed to seek part-time employment during semester STUDENTS
breaks on the condition that they do not apply for work as UNABLE TO FIND
a cashier, masseuse, musician, or singer. This rule prohibits WORK IN
international talent from honing their art in Malaysia and RELEVANT FIELDS
contributing to the creative scene with their respective
takes on music.
26
+ The creative industry in Malaysia has a reputation as a low POOR
income generator as compared to other fields of work. With MARKETING &
most new artists relying solely on social media to promote PROMOTION OF
their work, it can be difficult for their careers to take off THE ARTS
beyond their “immediate social circle”. Many artists are
also unaware of the business management skills required
to market themselves and their work, which inadvertently
reduces their exposure.
+ Malaysia has three main languages and numerous dialects. DIFFICULTY IN

While creating interesting diversity, this causes a language OVERCOMING
barrier with the people inclined to listen to music in their LANGUAGE
preferred language. Therefore one of the main goals for the BARRIERS
music industry is to create a brand and sound that can unite
most (if not all) Malaysians.
CASE ST U DY – M US IC F ES T I VA LS
BACKGROUND
Malaysia has been widely regarded as a prime location for
music festivals, due to its consistent weather and optimal
economic conditions. However, unclear performance
guidelines and regulations have in the past lead to last-
minute cancellation of performances. Despite this,
approximately three music festivals have been held annually
to huge success and positive reception from local and foreign
attendants alike.
KUALA LUMPUR HAS THE CAPACITY AND RESOURCES TO HOST A WORLD-CLASS MUSIC FESTIVAL
BREAKDOWN OF
INTERNATIONAL ATTENDANTS Future Music Festival Asia (FMFA) 2012
440
16,434 domestic attendants
7,042 international attendants
985 RM23.27m additional expenditure generated
2,063 RM11.01m generated through advertising and PR
1,577 FMFA was considered to be one of the largest music festivals to be held
1,977 in Malaysia until it went on an indefinite hiatus in 2014. Organisers The
Livescape Group worked tirelessly to bring in bigger acts year after year. A
study conducted by them showed just how much revenue can be generated
Singapore Indonesia India in a well-organised music festival alone.
European countries Thailand
27
VALUE CH A IN
GOVERNMENT SUPPORT
FUNDING TRAINING MARKETING & PROMOTION
MALAYSIA HANDICRAFT MHDC MHDC

DEVELOPMENT CORPORATION (MHDC) • Apprentice Training Scheme • Markets craft products under its
• 3 types of grants • Skills training subsidiary, Karyaneka which has been
• Build or repair craft production • Logistics development mandated to nurture the handicrafts
workshop • Product development industry for global exports
• Build or upgrade exhibition space • Heritage craft documentation
• Purchase of machinery/equipment/ • Marketing and promotion MATRADE
tools • Matching of local craft producers with
NATIONAL CRAFT INSTITUTE (IKN) potential export buyers
SME CORPORATION • MATRADE also has online partnerships
(UNDER MHDC)
• Seed Capital Scheme (Batik And Craft) with Amazon and Alibaba
• Certification and Diploma for skills on
• RM20k-250k
batik, weaving, pottery, metal, wood
carving, rattan, and bamboo MINISTRY OF TOURISM AND CULTURE
MALAYSIA EXTERNAL TRADE DEV (MOTAC)
CORP (MATRADE) • National Craft Day for 2 weeks annually
• Market Development Grant COMMUNITY DEVELOPMENT
DEPARTMENT (KEMAS) for visitors to view, buy, and experience
• Maximum of RM200k for export handicraft production
promotional activities • Certification and Diploma for
handicrafts skills
BASELI NE DATA
NUMBER OF CRAFTSMEN BY STATE AND

TYPE, 2015*
28
ACTIVITY OUTPUT
Development of craft skills • 365 students in 2015

(through IKN) • 137 students graduated in
2015
• 118 IKN graduates (86%)
are involved in the craft
industry
Marketing • Domestic – 146

promotional activities
involving 3,719 craftsmen
(29 activities done in Kuala
Lumpur)
• International – 15
promotional activities
involving 291 craftsmen
One Village, One Industry • 20 projects on

(SDSI) programme entrepreneurship involving
274 craftsmen
• 14 entrepreneurship
incentives involving 750
craftsmen
Craft research & development • Product and design

development
• Research on technology
and materials
Craft heritage documentation • Preservation

• Restoration
• Research and publication
DRI V ERS
+ Foreign tourists appreciate local handicrafts for their uniqueness but also
due to the attraction towards the story or themes behind many of our craft
products. These include the likes of songket which was only initially worn
by the royal families and pua kumbu that was used for sacred or ritual
ceremonies.
+ With the right marketing and strategies, Malaysian craft, with its unique
themes, designs, histories and heritage, hold great potential in the greater
global market.
+ Wood or forest-based material products have high marketability as

they can be made into various products such as furniture, utensils,
jewelry, and accessories. They also hold favourable export potential.
+ Malaysia is known for its traditional textiles such as batik, songket,

and pua kumbu which have rich traditions and histories. Additionally,
these textile products have been modernised in recent years and can
be further improvised for use in fashionable apparel.
29
REST RAI NT S
+ More than 90% of handicraft producers in Malaysia are small

scale players. They usually operate as sole proprietors and are
reluctant to adapt to changes, such as new methods of craft
production to increase economies of scale or to promote their
business beyond the local market. These craftsmen do not seem
motivated to enhance their skills, production capabilities or
business acumen.
* Note: Latest available data is for 2004.
+ It is estimated that a
large proportion of
existing craftsmen will be
retiring over time. They
are typically the first or
second generation who are
approaching retirement
age but there is a lack of
knowledge transfer to the
next generation. This is
further compounded by
the low interest level of
the younger generation
to pursue a career in the
crafts industry. Most youth
do not value traditional
crafts and are disinterested
in the industry which
is associated with low
30 incomes, unstable
business, and inadequate
security.
+ The lack of cooperation LACK OF
and coordination between PLATFORMS TO
craft producers and PROMOTE THE
respective regulatory bodies CRAFTS INDUSTRY
is hampering the industry.
Small-scale craft producers
are usually based in rural CRAFT DISTRIBUTION CHANNELS, 2004*
villages. They are not aware
of the available funding,
training, and marketing
support that can help them
to grow and expand.
+ With the majority of

craftsmen working as
individuals, craft products
move straight from the
producer to the customer.
Also, many craftsmen
indulge in these arts as a
passion more than as an
income-generating source.
+ Local crafts have to

increasingly compete with
imported crafts, especially
from neighbouring nations
which share our common
cultural histories. These
products easily penetrate
the local market due to close
resemblances.
+ Former Prime Minister Tun

Abdullah Ahmad Badawi
was surprised when he
noticed imported handicrafts
on display and for sale in
Langkawi instead of local
products of similar design and
features.
31

+ The supply of natural raw materials such as clay, wood, rattan, bamboo,
and other fibres are dwindling due to urbanisation, development, and
deforestation. This has led to rising costs that directly affects the
prices of handicraft products.
+ Raw materials for the textile sector are usually imported, mainly
by importers in the East Coast of Malaysia. Materials for songket,
embroidery and woven textiles are imported by private companies
from China, India and Europe. Overall, there is no consistent supply,
quality control and price stability to speak of.
CASE ST U DY –
M ALAYSIA N HA N D IC R A F T DE VE LOP M E NT CO R P O R ATI ON ( M H D C )
BACKGROUND
MHDC is an agency under the Ministry of Tourism and
Culture Malaysia, established under Act 222 of the Malaysian
Handicraft Development Corporation Act, 1979.
OBJECTIVES:
• To increasing awareness and interest in the use of local craft products.
• To expand the market size of craft products.
• To develop market-oriented quality products.
• To promote the growth and advancement of the craft industry.
• To provide trained staff to meet the needs of the craft industry.
HQ AND BRANCHES
MHDC HQ is in Kuala Lumpur and it has 14 branches – in Selangor, Malacca, Negeri Sembilan, Johor, Pahang, Terengganu,
Kelantan, Perak, Penang, Kedah, Perlis, Sarawak, Sabah, and Langkawi.
STRATEGY AND ACTION PLAN

• To cooperate with FELDA, RISDA, FELCRA, FRIM, SIRIM, IPTA, and other government agencies and non-governmental
organisations as well as the state government.
• To emphasise on craft using local and natural raw materials.
• To emphasise on the development of skilled craftsmen especially in rural areas.
• To make the SDSI program a mechanism for developing the national craft industry.
• To focus on traditional craft development for the preservation of the national craft identity.
• To focus on the growth of local crafts in the domestic market.
• To emphasise on the use of technology in the production of local craft products as world-class quality products.
32
VALUE C HA IN
TALENT DEVELOPMENT CONTENT PRODUCTION DISTRIBUTION
• 4 universities offering BA in Creative PUBLISHING COMPANIES MARKETING AND PROMOTION

Writing • 191 publishers currently set up in KL • Marketing team will strategise on how
• Oxford Fajar’s Annual BIG WRITE and Selangor best to market the book
Creative Writing Competition • Annual turnover of RM1.5 billion • Authors will make appearances to
• Independent workshops held by • From here, companies can also reach promote their books
writing societies out to authors to convert hard copies
into e-books or audiobooks format
DISTRIBUTION
CONTENT CREATION
• Retailers
• Authors’ initiative to promote the book
PROOFREADING and distribute in retailers overseas
AUTHORS • Content editing
• Can author own original work • Bookstores
• Copyediting • e-Books
• Can translate existing works into local
languages • Audiobooks
DESIGNERS
• In-house designers or outsourced
REVIEWING AND EDITING • Type-setting services
• Publishing companies will review
manuscripts for marketability and
determine if they are publishable PRINTING AND BINDING
• Print runs
• Printing can be outsourced to external
vendors
BASE LI N E DATA
TOTAL BOOKS PUBLISHED IN MALAYSIA, 2010 – 2014*
• The total number of books published in Malaysia saw a

steady growth at a CAGR of 4.47% from 2010 to 2014.
• In the interest of preserving the national language, 23.2%
of books published in 2014 was in relation to language and
• A dip in books published from 2013 to 2014 could have
linguistics. Literature books and fiction came in at 19.0%
been caused by authors choosing to publish their works
and religious books comprised 9.2% of total books published.
as e-books.
* Note: Latest available data is for 2014. 33

DRI V ERS
+ Local book publishers are unlikely to increase book prices despite the
increase in the cost of paper as most publishing houses maintain sufficient
stock for their publishing requirements. To date, Karangkraf Media Group
announced that they have no plans to increase product prices either.
Maintaining the price of books could attract more people to purchase them.
+ The Malaysian publishing industry was brought to the international

stage at the Frankfurt Book Fair in 2016. Their participation was part
of the National Book Policy to further develop the publishing industry
(mostly for books). By building a global presence, interest in local authors
will be enhanced as Malaysians start to appreciate local writing talents.
REST RAI NT S
+ Demand for print books still accounts for 90% of total sales
nationwide. However, industry revenue is expected to be
negatively affected due to financing issues. The RM100
1Malaysia book voucher for students has been replaced with
a RM250 debit card that they can use to purchase stationery,
computer accessories, and internet access. The 2017 Budget
does not hold good news for the publishing industry either
– the implementation of a RM2,500 lifestyle tax relief has
replaced the RM1,000 tax relief intended for books, journals,
and publications. The new tax relief has been opened up to
purchases of newspaper publications, gym memberships, tablets
and smartphones, and internet subscriptions.
+ Unlike printed books, the publication of e-books does not

require as much time or money. Authors can self-publish
on online platforms such as Amazon and have their content
downloaded worldwide at a relatively low price. Local authors
will also get to see their works on the global stage and can
enjoy success online that may not have been possible had their
works been published in print. This essentially pits authors
who can self-publish against publishers.
34
CASE ST U DY – BUK U F IXI
BACKGROUND
Founded in 2011, owner Amir Muhammad wanted to publish
books that deviated from the norms of Malay fiction. Fixi
opened its first flagship store in 2015 after carrying out
business operations online. Fixi publishes a range of titles,
from classics to pulp fiction. Three of their titles (Pecah,
Zombijaya, and Gantung) have been turned into films
and mini-series with another two titles in the pipeline to
receive the same treatment. Fixi has also championed local
publishers’ presence at the London Book Fair.
QUICK NUMBERS
1.8 million in 2016

revenue
RM300,000 in revenue from the KL International Book Fair

10% revenue growth achieved in 2017
3,000 copies of Malam sold out within 30 hours at the Big Bad Wolf Book Sale
160 titles published
IMPRINTS
FIXI MONO: Non-fiction

FIXI NOVO: English-language books
FIXI RETRO: Out-of-print Malay books
FIXI VERSO: Translations of bestsellers
Buku Fixi publishes novels in the urban contemporary pulp fiction genre, but they enjoy the most success in the horror
genre. Horror Stories and Asrama are their best-selling horror novels of all time, recording 400,000 copies sold each
within 3 years.
35
VALUE C HA IN
SUPPORTING INDUSTRIES FOR MUSEUMS
FUNDING EDUCATION/TRAINING END USER PROFILES MARKETING PLATFORMS
FEDERAL For conservators: currently no Local Travel agency

• RM38.5m in 2016 (Malaysia) artifact conservation diploma/
degree in Malaysia. Museums Tourists (individual & by tour SOCIAL MEDIA
SELANGOR STATE typically accept candidates groups) • Time Out KL
GOVERNMENT with science backgrounds, • TripAdvisor
• RM1m in 2016 such as a diploma/degree in: School excursion visits • Lonely Planet
• Biological Science
PRIVATE FUNDS • Chemistry MOTAC
E.g.: • Pharmaceutical • Tourism Malaysia
• BNM These courses are widely advertisements and website
• Telekom available in public and private
• University Malaya universities/colleges.
• Al-Bukhary Foundation
funding Islamic Arts For curators: history/
Museum language/related education,
• Other funding of museums e.g.:
that are commercially- • Bachelor in Arts (UM, USM)
driven • Master of Arts (SEA History)
(UM)
• PhD/ Masters in Archeology
(UKM, USM)
• Master of Islamic Studies/
Islamic Civilisation or
related (UKM, UiTM, UM)
Overseas training – such as

the Southeast Asia Regional
Centre for Archaeology
and Fine Arts (by national
museums)
Core roles such as

conservators and curators
mostly receive on-the-job
training
CASE STU DY – N AT IO N A L M U SE U M
• Established in 1963 with the core functions of collection,
preservation of archaeology, and exhibition
• 4 key galleries
• Early history
• The Malay Kingdoms
• The Colonial Era
• Malaysia Today
• 2,583 total collection
Some of the programmes and activities held by National

Museum:
• Museum Night Trail
• School break programmes
• ‘In Love with Jar’ Exhibition (“Pameran Tempayan”)
36 • Cultural performances
• Inreach programmes
• Archaeological excavation module – The Perak Man
CONSUM ER
C ONS U MER DEMAND S U R V EY
DEM A ND SURV EY
37
38
39
Bu i l d i n g B l o ck s
BU I LDI NG BL OCK S
This Cultural and Creative Economy Report

for Kuala Lumpur provides a major step towards
developing a more imaginative, ambitious, and
progressive place: to live in, work in, invest in
and visit. It introduces the building blocks for a
successful cultural & creative economy and the
pathways for ensuring globalisation does not
bring homogenisation, and that growth does not
erode cultural vitality.
Five building blocks have been identified as the basic 1. Cu l t u r al & Cre at ive Edu c at io n :
structure to build a high growth and value-adding cultural Cre at e A Cre at ive Wo rkf o rc e
economy for Kuala Lumpur.
2. Cre at ive Hu bs & In fr as t ru c t u re
They are introduced here and discussed further
under the “Potential Actions” section.
3. Nu rt u rin g Th e M arke t
Meanwhile, in the bid to establish and fortify these building 4. Bu s in e s s S u ppo rt & In ve s t me n t
blocks, we also first need to clearly delineate and identify the 5. Cre at ive P l ac e -makin g,
strengths and gaps of the various sections that make up the Live abil it y & To u ris m
cultural and creative economy landscape of Kuala Lumpur as
it stands today.
T HE 5 CU LT U R A L & C R EAT IV E E CONOM Y BU I LD I NG B LOC K S
1 . C u l t u r a l & C re at ive E du cat ion: Crea te A Crea tiv e Workf orc e
• Well educated, young, ambitious workforce with strong STEM education.

KEY QUALITIES
OF KUALA • Some creative specialisms – e.g. in performing arts, digital, crafts.
LUMPUR • Growing vocational provision with industry partnerships – e.g. audiovisual, digital, crafts.
• Low levels of cultural and creative education in schools.

MAJOR GAPS
• Weak appreciation of the creative industries as a viable career.
IN KUALA
LUMPUR • Lack of international standard accreditation in key industries.
• Major skills gaps – e.g. in backstage skills for performing arts, dying crafts skills, and script-writing
for audiovisual.
• Lack of world-leading higher education institutions with specialism in creative practice – e.g. via
arts and humanities or sector specific schools such as art and design schools, film schools, design
schools, etc.
40
• Finland has the most expansive cultural and creative education in the world. This is based on a
principle of open, non-didactic learning, which encourages self-exploration, collaboration, and
GLOBAL problem-solving. This is carried through from primary school to industry where students are
COMPETITOR encouraged to experiment, seek new solutions, and engage in design-thinking.
COMPARISON
• The landscape includes (1) strong creative foundations at university level and within specialist
industry skills bodies, (2) focus at the policy and investment level, and (3) priority on innovation
within the cultural and creative economy.
• Develop a creative education and skills policy for Malaysia – to link key strategic areas in the
INDICATIVE
‘professional creative journey’ (from school to retirement).
DEVELOPMENT
OPPORTUNITY
2 . C re a t i v e Hu bs & In fr as t r u ct ure
• An emergent ecosystem of creative hubs – e.g. co-working spaces, incubators, and co-located
production and consumption activities in old industrial buildings. The complex and diverse
KEY QUALITIES urban landscape offers huge potential for the proliferation of creative hubs of all types.
OF KUALA
LUMPUR • Large retail malls which are growing a role as cultural venues and platforms for exchange and
showcasing.
• Museums and galleries which are improving, modernising and adapting to become more relevant
to audiences and engaging for creative businesses.
• A higher education sector which is becoming more amenable to industry partnership – e.g. hubs
in ‘third spaces’ off-campus.
• Hubs are relatively few in number, are not clustered, and lack the scale and diversity of other cities.
MAJOR GAPS
• There are gaps in the hub ecosystem – e.g. artists’ studios, cross-sector labs which connect the
IN KUALA
creative arts to science and technology,z and flexible production space for festivals and events.
LUMPUR
• The cultural sector lacks tailored facilities of international standards – e.g. climate-controlled
visual arts galleries, dance studios accessible to less well-off communities, and genuine world-
class museums, theatres, and music venues.
• There are fewer informal and diverse cultural venues compared to other major cities - e.g. for live
music.
• Singapore has invested heavily in its creative infrastructure over the recent years – from small-
GLOBAL scale production campuses (e.g. Goodman Arts Precinct) to major cultural venues (e.g. Esplanade).
COMPETITOR This underpins a formal strategy to be a leading creative nation which enables creative production,
COMPARISON presentation, distribution and consumption to flourish.
• This aligns cultural strategy to digital and creative economy agendas – with a mix of hubs,
production facilities, incubators and accelerators key.
• Secure long-term creative clusters in key strategic sites across Kuala Lumpur - to establish a vibrant
INDICATIVE
creative ecosystem made up of several connected districts of culture.
DEVELOPMENT
OPPORTUNITY • Develop an investment programme to reform and refresh major cultural infrastructure - to
increase capacity and quality as anchors of world-class cultural destinations.
• Ensure the inclusion of cultural and creative facilities and hubs are encouraged as part of the
planning requirement for major developments. 41
• Protect heritage sites for their re-use as creative hubs.
3 . Nu r t u rin g Th e Mar ke t
• A growing middle class with less income disparity than most other major Southeast Asian cities.
KEY QUALITIES
OF KUALA • English language skills – which make it easier to sell and collaborate with many key markets.
LUMPUR • Improving distribution channels and platforms – digitally and via the many malls.
• Relatively small domestic market and limited diaspora.

• Low brand awareness of and loyalty for Malaysian creative goods and services – domestically and
MAJOR GAPS
internationally.
IN KUALA
LUMPUR • Lack of export readiness across the cultural & creative economy – e.g. knowledge of markets and
regulation.
• Regulatory aspects such as tariffs on some creative goods and services make it more expensive to
develop creative businesses locally.
• Lack of dedicated creative trade shows and fairs and low visibility internationally.
• Japan launched the Cool Japan Fund in 2013 as a public-private fund with the aim of supporting
GLOBAL and promoting the development of demand overseas for Japanese products and services.
COMPETITOR
COMPARISON • Cool Japan Fund aims to commercialise and increase overseas demand for the creative industries
by providing risk capital for businesses across a variety of areas, including media and content as
well as fashion and lifestyle.
INDICATIVE • Build Kuala Lumpur as a centre for creative expositions - e.g. organise trade fairs and major
DEVELOPMENT creative festivals and events – to build awareness domestically and overseas, attract investment,
OPPORTUNITY and generate ‘created in Malaysia’ loyalty.
4 . B u s i n e s s Su ppor t & In ve s t ment
• Strong sector-focused business support and investment programmes – e.g. for audiovisal and
digital, crafts.
KEY QUALITIES
OF KUALA • Dedicated support and intelligence available for IP literacy.
LUMPUR • Increasing investor awareness and appetite in the cultural & creative economy – with
MyCreative Ventures playing an important role in demonstrating investment potential.
Tax incentives are also playing a positive role.
• Strong sector networks across the cultural & creative economy (formal and informal), facilitating
knowledge exchange.
• Lack of creative entrepreneurship and management training at pre- and post-graduation levels.
MAJOR GAPS
• Lack of a dedicated cultural & creative economy development agency – an intermediary to build
IN KUALA
networks, facilitate business support programmes, and act as advocate and champion. CENDANA
LUMPUR
can become this agency.
• Lack of business support in key creative sectors – e.g. visual arts, performing arts, and music.
• Gaps in the creative investment landscape – e.g. retail banks rarely invest in creative businesses;
42 and funds for R&D are not widely available.
• The UK has for over 20 years developed a coordinated business support and investment
GLOBAL landscape which still, despite almost a decade of austerity, provides an extensive range of services
COMPETITOR to creative businesses. These include locally-tailored business support programmes, targeted
COMPARISON creative industries finance schemes, and programmes which connect arts and the commercial
creative industries. These also include extensive national programmes – e.g. on export readiness,
IP advisory services, and a blend of incentive and investment activities.
INDICATIVE • Review and reform the business support and investment landscape for Kuala Lumpur – to ensure
DEVELOPMENT creative businesses have access to tailored expertise and advice, business-to-business exchange,
OPPORTUNITY and key investment communities.
5 . C re a t i ve P l ace - mak in g , Live ability & Tourism
• A rich and distinctive urban landscape – with some substantial heritage assets, green spaces, and
KEY QUALITIES dynamic high-density urban districts.
OF KUALA • Growing cultural planning expertise (e.g. via ThinkCity) – which recognises the cultural value of
LUMPUR the urban landscape and seeks to re-imagine and reinvigorate key districts across the city. This
includes a strategic alignment of environmental improvements, health, wellbeing and cultural
participation.
• Strategic initiatives such as RIUH (an initiative from MyCreative Ventures) – which will bring
experimental and participatory cultural and creative activities into the cityscape.
• An expanding public transport network which is unlocking development opportunities,
connecting districts and facilitating opportunities for culture-led development.
• Severe constraints on effective creative place-making – e.g. traffic congestion which polarises
MAJOR GAPS communities and limits cultural participation; weak planning guidance and enforcement, which
IN KUALA means development rarely has a cultural dimension; and the blight caused by previous planning
LUMPUR errors – e.g. the lack of access to waterways and the lack of infrastructure for outdoor festivals and
events.
• Culture and creativity is not at the fore of planning policy, inward investment and talent retention/
attraction activities, or place-branding (e.g. for tourism). This has resulted in very low levels
of association between Kuala Lumpur and culture and creativity and the city is rarely viewed
internationally as a cultural or creative city.
• The festivals sector is under-developed, with few large-scale influential events which can
transform the identity of a city and gain long-term commitment to culture as a driver of successful
city-making.
• Vancouver, Canada has successfully aligned its approach to city development, economic
GLOBAL competitiveness, wellbeing, and liveability. It has achieved this by positioning culture and
COMPETITOR creativity as a golden thread through all corporate policies and investment programmes. This
COMPARISON ‘whole city’ approach to culture and creativity includes an enlightened urban planning policy that
seeks to embed cultural and creative infrastructure and activity; high levels of funding for cultural
production – e.g. in events and festivals; and the promotion of the city as a cultural destination
and place to develop creative business. Consequently, Vancouver is regularly close to the top of
global wellbeing and liveability indexes.
• Develop dedicated planning guidelines for culture, and explore incentives which will encourage
INDICATIVE
culture and creativity at the heart of the civic narrative (i.e. in promotional literature and outward
DEVELOPMENT
missions for tourism and inward investment) – to introduce Kuala Lumpur to the global Cultural &
OPPORTUNITY Creative Economy sphere. 43
o pp o r t u n i t i e s
OPPORT UN I T I ES
ARTS AND CULTURE GIVE LIFE MEANING, HELP TO

BUILD DIVERSE AND COHESIVE COMMUNITIES
AND IMPROVE OUR QUALITY OF LIFE. GREAT ART
AND CULTURE CAN INSPIRE OUR EDUCATION
SYSTEM, BOOST OUR ECONOMY, AND GIVE OUR
NATION INTERNATIONAL STANDING.
O U R OP P ORTUN ITIE S
+ To build a coherent investment landscape for the arts - which connects grant finance for emergent activities,
R&D, infrastructure gaps and commissions, loan finance for organisational development and to support revenue
generation (e.g. via retail, catering, and events), and equity finance for scalable content – e.g. performing arts
touring shows, input to audiovisual sectors, and collaborations with technology companies. Also build a clear
campaign for private sector investment in the arts, promoting tax incentives where they exist and demonstrating
the returns on investment (e.g. for brand development, corporate social responsibility, innovation, and in some
cases, equity).
+ To scale-up talent development programmes which balance technical and creative skills with entrepreneurship
and management skills. This can involve partnerships – e.g. between creative education institutions, business
and management schools, and via knowledge exchange programmes.
+ To undertake a long-term sector-wide audience development programme - raising awareness of the power
and quality of the arts, providing concessions in a coordinated way, programming art in places and spaces for
which there is existing footfall, and building big data on audiences which can be shared across the sector. This
can be a priority action of CENDANA – working to cement a coordinated and more consortia-driven model for
the arts development across Kuala Lumpur.
+ To establish Kuala Lumpur as an events and festivals city - with clear and consistent planning and licensing,
transparent approaches to censorship and policing, and a public sector which works hard to enable cultural
practice to thrive rather than to prohibit it. This can include a strategic approach to growing events capacity
across the city – e.g. re-purposing public space to enable outdoor arts events, supporting temporary cultural
spaces in industrial and heritage contexts, and supporting event and arts production companies to develop and
grow.
+ To establish Kuala Lumpur as a globally significant centre for contemporary visual arts and urbanism -
embracing the landscape and supporting visual arts clustering in central KL and key transforming districts of the
city. This can add to the quality and dynamism of the mix.
44
MUSEUMS AND HERITAGE ASSETS ENRICH LIVES, INSPIRE MINDS, AND BUILD CULTURAL
LITERACY. THEY ARE THE LIFEBLOOD OF A HEALTHY CULTURAL ECOSYSTEM AND PLAY A
TRANSFORMATIONAL ROLE IN THE CULTURAL & CREATIVE ECONOMY.
+ To build digital capacity in the museums and archives sector via a dedicated digital development programme.
This can build collaboration with the Kuala Lumpur digital sector and focus on digitising content (e.g. the
national archives); improving reach and engagement (e.g. via multi-platform and multi-channel communications);
innovating with the visitor experience (e.g. via gamification and use of VR and AR); and innovating with the
business model (e.g. opening-up new revenue streams via monetised content and new products and services).
+ To re-imagine the museum and heritage experience via collaboration with other parts of the cultural and
creative economy - establishing hubs of creative production, staging events and festivals, and exploring
touring models (e.g. presenting work in pop-up galleries in shopping malls). This is to build relevance to wider
audiences and establish the sector as more contemporary and aspirational.
+ To increase consistency of quality via piloting a new accreditation model for museums - co-designing with
Kuala Lumpur universities’ new degree and postgraduate courses in core museum and heritage disciplines;
and brokering skills and knowledge exchange activities across the workforce (including between state and
private museums).
+ Revitalise the governance and business models for state museums – allowing them to trade (not to generate
surplus but to re-invest for innovation, sustainability, and growth).
+ Re-purpose heritage gazetting and enforcement - a new heritage revitalisation system which extends
protection, provides clear and enforceable planning guidelines, and incentivises the re-use of heritage assets
for contemporary creative use.
45
LITERATURE PROVIDES US WITH THE MEANS

TO UNDERSTAND, DESCRIBE, AND RE-IMAGINE
THE WORLD. IT GIVES US THE MEANS TO KNOW
OURSELVES AND OTHERS; TO EXPRESS THOSE
STRUCTURES OF FEELING WHICH WOULD
OTHERWISE BE OUT OF REACH. LITERATURE
AND THE ACTIVITIES IT GENERATES, GIVES US
THE FLUENCY TO MANAGE OUR LIVES.
+ To mobilise a culture of reading from school into adulthood – e.g. by developing a more diverse and exciting
literature syllabus in school; by promoting reading through coordinated campaigns and festivals/events; and
by supporting writers and publishers to increase access to audiences/markets through tailored investment and
support.
+ To provide a more coordinated skills offer to writers, including industry awareness, entrepreneurship, and
collaboration opportunities with other creative sectors.
+ To develop specialisms which complement the growth areas of the cultural and creative economy - e.g.
children’s writing linked to the TV and animation sectors; comics and zines linked to the animation and gaming
sector. There are also major skills gaps in film and TV for script-writing – for which connection to the wider
creative writing landscape might prove fruitful.
+ To develop literature as a key part of the cultural tourism landscape in Kuala Lumpur – building on literature
tours and the events sector; plus developing options for an international writers’ centre – as a hub for residency,
exchange, and critical engagement.
+ To target key international markets via outward missions and export development support for publishers – e.g.
Singapore, China, India, UK, and North America.
+ To invest in R&D and prototyping via digital publishing – connecting literature to the internet of things.
46
CRAFTS – THE PROCESS OF DESIGNING AND MAKING
DISTINCTIVE PRODUCTS – GIVE A NATION, REGION
OR CITY A SENSE OF IDENTITY. CRAFTS AND ‘MAKING’
MATTER – EVEN IN OUR GLOBAL, DIGITALLY ENHANCED
MARKET. PERSONALISATION, PROVENANCE, A DESIRE
FOR DIRECT CONTACT WITH MAKERS, ETHICAL
CONSUMPTION AND SUPPORT FOR LOCAL TRADING, ARE
ALL INFLUENCING THE MARKET FOR CRAFTS.
+ To deliver a step change in entrepreneurship, ambition, and capacity through intensive and targeted
support to a younger generation of urban crafts makers. Malaysia has not developed an urban craft scene
and aesthetic as witnessed in leading craft hubs such as Chiang Mai or Seoul. This involves nurturing
clusters and networks of younger designer-makers with tailored support and investment which incentivises
innovation in the use of materials and aesthetics; collaboration with traditional handicraft makers and other
creative industries to generate new types of products (or even services); and targeted market development to
appeal to higher-spending urban consumers. It can also involve supporting digitally-enabled activities such
as fab lab facilities, hackathons for rapid prototyping, and online sales and promotion platforms.
+ To build a promotional campaign that champions ‘created and made in Malaysia’ and that appeals to all
generations - with officially endorsed crafts products and high-profile sales platforms - e.g. via partnerships
with major retailers. This will increase accessibility for crafts makers to grow and commercialise their businesses.
+ To boost the activities of MHDC and partners via the modernisation of National Crafts Day – to become
National Craft, Design and Innovation Day: a showpiece for the links between traditional crafts excellence and
contemporary innovation. This can be impact-facing – as demonstrated in Dutch Design Week (Eindhoven),
which showcases the best in Dutch design in ways that show loyalty to traditional crafts but also show how
craft skills and craft thinking can be applied to problem-solve for societal issues such as environmental
pollution or mobility.
+ To develop an enforceable policy regarding sustainable provision of high quality raw materials which can be
traced from the finished product.
47
+ To establish Kuala Lumpur as a major hub for modest fashion in South East Asia and globally. This will
require a dedicated fashion development and investment programme to even reach ‘catch-up point’ with
competitors. Key interventions would include: government mandate of designer fashion as a vital and
potentially high-growth sector which can also add to the competitiveness and innovation capacity of the
traditional textiles, apparel, and footwear sectors. From this recognition, key interventions can be introduced –
to include a much stronger fashion education, skills and enterprise offer; targeted investment to ease start-up
development; specialist business support and market development; dedicated fashion workspace/hubs; and
a strategic approach to showcasing and market-making (i.e. ensuring the fashion show offer helps accelerate
growth).
+ To build the capacity of sector associations so they are better equipped to play a high-value role in a reformed
approach to sector development. For example, the Bumiputra Designers Association already plays a vital role
in connecting designers, delivering seminars, and building market opportunities. But it has limited capacity. A
consideration would be to develop a fashion and textiles programme to connect designers to traditional textile
manufacturers to ensure harmony in the value chain so that designers are able to adequately respond to orders
(such as those generated at fashion shows).
+ Consolidate and promote different districts of Kuala Lumpur as fashion hubs. This can be through
collaboration and branding activities which establishes a district/street as a fashion hub. It can also be
through the effective curation and programming of pop-up fashion retail to enhance the districts as fashion
destinations and generate markets for the designers. It can also be by securing fashion workspaces – as hubs
for emergent fashion talent. This will enable knowledge exchange and collaboration; enhance confidence and
capacity for the designers; and increase the visibility of designer-makers as key players in the Kuala Lumpur
cultural and creative economy.
48
FILM, TV, RADIO, ANIMATION, GAMES
COLLECTIVELY ENTERTAIN, MOVE AND
INSPIRE THE MALAYSIAN PUBLIC. THESE
SECTORS EXCITE THE EMOTIONS AND
INTELLECT, GIVE US COMFORT AND JOY.
THEY SHAPE OUR LIVES. THEY ALSO PROVIDE
SIGNIFICANT ECONOMIC VALUE: WITH
LOCAL PRODUCTION AND CONSUMPTION
GROWING AND KUALA LUMPUR THE CENTRE
OF A BURGEONING AND INCREASINGLY
GLOBALISED MEDIA AND ENTERTAINMENT
HUB.
OUR OPP ORTU NIT IES
+ To build a focus and coherence in policy and investment. Although the governance
and regulatory landscape for the sector is strong, there is a clear lack of coordination
and integration between these sectors. There needs to be a shared overarching film,
broadcasting, and digital content policy for Malaysia that joins together the key building
blocks. This should include leveraging on the cultural distinctiveness of Malaysian film
and TV to target and reach the Asian market.
+ To increase investment in early-stage productions and R&D across the industry

and build stronger investor interest in high-growth sectors such as animation.
In partnership with the University sector and through the emergent clusters (e.g.
Cyberjaya), Kuala Lumpur can be a hub for the convergence of creative and technical
innovation. This will need pump-priming and more new flexible financing to encourage
creative ventures that explore future horizons rather than the current market. This will
also instil a more critical and higher quality edge to local content. There is also a need to
nurture investor readiness – leveraging the IP Financing Scheme, MyCreative Ventures,
and Malaysia Debt Ventures, e.g. for commercial banks (building their awareness of and
appetite for IP-based creative businesses); or for business angels and VCs – mobilising
networks and providing the platforms for investment (e.g. accelerators).
+ To develop a long-term skills drive which delivers some short-term impact – establishing
consistent accredited programmes in schools and universities; embedding entrepreneurship
and management across upskilling programmes; increasing the prevalence and quality
of professional development programmes; and directly attending to major gaps in skills
(e.g. script-writing and story-telling) via master-classes, knowledge exchange platforms,
apprenticeships, writing camps, and international exchanges. This is to have a long-term
view on sector development, which is necessary given the maturity of the skills landscape
in competitor nations.
+ To increase the scale and prevalence of specialist hubs and facilities which focus on
generating critical mass through multiple micro-enterprises collaborating and scaling
together.
49
potential ac tions
POT EN T I A L
ACT IONS
This report identifies 5 building blocks for Kuala Lumpur’s cultural and creative economy, each requiring a mix of public and
private sector investment and management. The 5-year agenda, with CENDANA as catalyst, champion, and enabler will provide
the impetus for long-term sustainable growth to establish Kuala Lumpur as an internationally-recognised cultural and creative
city.
Effective partnerships would require:
A) The public sector as the enabler - with supporting priority agendas, policies and investments to facilitate reform and
support or protect cultural and creative activities.
B) The private sector as the catalyst - driving the cultural and creative economy as equal partners with the state in the
designing of policy for each building block and co-investing in activities to propel growth.
C) The convergence of the public and private sectors - to create a sustainable economy for cultural organisations through
revenue-generating activities.
D) The connection of state-run development organisations across the cultural and creative economy - to jointly approach
the development of the key building blocks with a focus on sector-specific elements.
BUILDING BLOCK 1
C u l t u r a l & C re at ive E du cat ion : A Crea tiv e Workf orc e
Education institutions must strive to do the following:

• Excellent schools nurturing talent, encouraging collaboration and problem-solving and championing the arts.
• Schools, colleges and education programmes of cultural organisations building cultural audiences and participation.
• Schools, colleges and universities promoting creative employment and the idea of a creative job.
• Universities actively driving creative entrepreneurship and providing industry-ready skills and research.
50 • Skills programmes enabling continuous professional development across the cultural and creative economy.
potential ac tions
BUILDING BLOCK 2
C re a t i v e Hu bs & In fr as t r u ct u re
• A range of accessible and affordable creative hubs (for creative production and consumption), facilitating exchange,
accelerating growth, and protecting creative practice from speculative property development.
• Universities providing creative spaces and platforms for industry partnership.
• Excellent broadband access and free wifi in public spaces, creative hubs, and cultural buildings.
• A rich mix of cultural infrastructure – from large scale world-class museums, galleries and theatres, to innovative community
facilities. These institutions should operate on a mixed economy business model and should be digitally enabled, which
will allow them to be generators of value across the cultural and creative economy.
POTENTIAL ACTIONS
• Develop planning guidance and a spatial strategy for cultural and creative hubs across Kuala Lumpur. Working with
the municipal government, this can include a zonal policy which incentivises developers to provide affordable creative
workspaces; a toolkit for planners to facilitate the use of affordable temporary use for creative workspaces; and planning
guidance on how to use heritage buildings for cultural and creative uses. Training will also be required to support a cohort
of hub managers.
• Establish a cultural and creative hub network and platform for Kuala Lumpur. This can provide information on the
tenant businesses and organisations; promote events and support services; and enable knowledge exchange and business
networking. It can include targeted programmes which build industry collaboration, plus facilitate progression – e.g. access
to incubator and accelerator programmes, and business support services to increase the sustainability of these cultural
and creative hubs. It can also provide access to specialist facilities – e.g. fab labs. It can be viewed as the first step toward a
cultural and creative network for Kuala Lumpur.
• Through CENDANA, launch a cultural and creative infrastructure revitalisation programme. This is a package of reforms
to encourage cultural organisations to more actively champion the cultural and creative economy development through
(1) the imaginative use of abandoned/underutilised spaces (e.g. the provision of affordable hubs), (2) events and
networking activities which connect with micro creative enterprises, and (3) collaborative activities with industry and
higher education to generate a more customer-facing, digitally-enabled, and innovative offer.
A NOTE ON CREATIVE HUBS
To successfully grow the cultural and creative economy of Kuala Lumpur, creative hubs must be connected as one
complementary and supporting ecosystem. As a collaborative, inter-disciplinary and cross-boundary industry, it requires the
following enabling conditions to deliver its potential impact and value: (1) effective ecosystems shaped by shared values which
express a distinctive local identity that influences the cultural context of creative production and consumption, and
(2) ecosystems that are also inclusive, with various pathways into the numerous industries being available for talent across the 51
board.
potential ac tions
BUILDING BLOCK 3
• Clear routes to market for creative content, goods and services – e.g. via online and offline distribution systems which
are legible, user-friendly, and transparent.
• A well-informed domestic market which is loyal to local content, goods and services, and for which there are clear
opportunities to buy and a critical community of review (e.g. an arts and creative media and strong creative networks).
• Tailored market development activities – e.g. trade shows, outward and inward missions, and a strong commercial festival
sector.
POTENTIAL ACTIONS
• Establish a cultural and creative economy statistical working group to review the industrial and occupational
classifications currently used to measure economic performance, which is benchmarked against the creative industry’s
definition of UNCTAD. By year 5, a new data collection system should be in place for the cultural and creative economy.
• Develop a promotional campaign to raise awareness of the distinctiveness of the cultural and creative economy and
generate brand loyalty to local products, services, and content.
• Initiate an international market-development campaign with a three-pronged focus of securing buyers/distribution,
building collaborations, and attracting inward investment and talent to position Kuala Lumpur as a cultural and creative
hub.
BUILDING BLOCK 4
B u s i n e s s S u ppor t & In ve s t me n t
• Tailored business advisory services for different parts of the cultural and creative industries – e.g. on entrepreneurship,
management, intellectual property and export.
• Strong creative business networks and trade bodies – allowing for knowledge exchange, value chain development, and
collaboration.
• Targeted investment and investor-readiness activities – e.g. creative incubators, accelerators, and investor networks.
• A coordinated investment landscape with some dedicated creative funds – from microfinance and small grants to equity.
52
potential ac tions
POTENTIAL ACTIONS
• Review the business support and investment landscape for the Kuala Lumpur cultural and creative economy and lead
a reform and development process aimed at ensuring creative businesses have access to tailored expertise and advice,
business-to-business exchange, and key investment communities. It might also include a more proactive approach to
creative entrepreneurship and incubation from the university sector – with industry partnership prioritised in course
delivery, research and employability agendas.
• Seek ways to effectively collaborate with sector trade bodies to extend their reach and value add to the quality and
consistency of their services.
• Expose and educate investors and banks to the investment opportunities in the cultural and creative industry.
BUILDING BLOCK 5
C re a t i v e Pl ace - makin g , Live ability & Tourism
• Culture and creativity are essential ingredients in economic policy, city planning, and governance.
• Culture is a central element in community engagement, regeneration and environmental improvement activities.
• A strong and innovative festival and events sector – animating public space and central to tourism agendas.
• Culture and creativity imaginatively used for place-branding, inward investment and tourism campaigns – focusing on a
variety of arts and culture activities.
POTENTIAL ACTIONS
• Develop partnerships with local councils in Kuala Lumpur to integrate culture into planning, education, economic
development, and tourism.
• Embed culture into planning and design agendas. One opportunity is in housing, where a commitment to imaginative,
well-designed housing which offers a high-quality public realm, amenities which encourage citizen participation, and
affordable workspaces in accessible locations; is a cultural statement. Another opportunity is in transport and major
developments, where new or improved cultural infrastructure can work to anchor and connect parts of the city, signage
can be transformed (e.g. to include digital signage and new wayfinding technologies), public spaces can be serviced to
be able to cater for sports, festivals and events, and affordable creative workspaces can encourage talent to actively
produce new culture for the city.
• Modelled on the new programme in London, UK, consider setting up a ‘Cultural Districts’ programme: two districts per
year feature as the ‘priority areas’ for investment and partnership in cultural place-making.
53
Discl aimer
DISCL A I M ER
RESE ARCH DIS C L A IM ER

This project was initiated by ThinkCity and British Council Malaysia. Following that, other public and private partners also
participated, and this included the Cultural Economy Development Agency (CENDANA), the Ministry of Communications and
Multimedia (KKMM), Hasanah Foundation, Yayasan Sime Darby, and MyCreative Ventures Sdn. Bhd. The research in this report
was undertaken and prepared by a consortium comprising of Frost & Sullivan, My Performing Arts Agency (MyPAA) and Tom
Fleming Creative Consultancy (“the Partners”).
Without prejudice to the generality of the foregoing paragraphs, the Partners do not represent, warrant, undertake or guarantee
that the use of data and information in this report will lead to any particular outcomes or results. All data and information
presented in this report have been obtained or derived from sources believed by the Partners to be reliable but makes no
representation as to their accuracy, completeness and timeliness. The Partners shall be indemnified from any loss arising from
the use of data and information presented in this report, except for liability that arises under specific statutes or regulations
applicable. By using this report, you accept this disclaimer in full.
FROST & S U L L IVA N ’S R ES EA R C H M E TH OD OLOG Y
Frost & Sullivan has refined its research methodology over many years of experience, having researched diverse markets
in many different life cycles—from the embryonic to mature. Frost & Sullivan’s reference publication, Industrial Market
Engineering (Publication 5168-80), explains the research methodology in great depth.
The information contained in this report was prepared from publicly available materials and data provided by industry
stakeholders, including but not limited to regulatory bodies, local authorities and industry associations. Quantitative market
information is also derived based primarily on interviews. For this report, Frost & Sullivan has completed the following:
• Face-to-face interviews and focus group discussions with 67 industry participants (including regulators and
education providers)
• Collected responses from 92 industry players via online survey
• Collected response from 400 audience as part of demand survey
While Frost & Sullivan has made every effort to ensure the accuracy of the data used in this report, we do not give any warranty
as to the accuracy or completeness of the information contained in this report. There are limitations in the extensiveness and
quality of data used for analysis and reporting in this report. The reasons for limitation are as follows:
i. No Data or Only Partial Data are provided

There are instances where no data or only partial data are collected and provided by regulatory bodies, local authorities or
industry associations.
ii. Data Inconsistency

There are instances where data provided are inconsistent due to different methodologies and responsibilities in collecting
information by different parties. In this view, data collected from but not limited to various individuals, companies, associations,
regulatory bodies or local authorities may not entirely be comparable and may not be combined.
54
55
56
57
Cultural Economy Development Agency
(CENDANA)
B-15-01, PJ Trade Centre,

No. 8 Jalan PJU 8/8A,
Bandar Damansara Perdana,
47820, Selangor Darul Ehsan.
www.cendana.com.my

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Foreword by the Prime Minister of Malaysia 3

Foreword by CENDANA Chairman 4

The Approach & Data Gathering 7

The Key Sectors Driving

Consumer Demand Survey 37

YBHG. DATUK SERI AHMAD FARID RIDZUAN

IZAN SATRINA DATO’ MOHD SALLEHUDDIN

INTRODUCING THE CULTUR AL

A ND CR EATI V E ECONOMY R EPORT

This report will:

2. Analyse opportunities and key challenges towards establishing Kuala Lumpur as

3. Recommend primary action steps to be taken to build Kuala Lumpur as an

DATA GATHER ING

The Data and Baseline Challenge

• Collected responses from 92 industry players via online survey

• Collected responses from 400 individuals as part of a demand survey

• To create 125,000 jobs in the SEPANG

cultural and creative economy

WHY DEV EL O P T H E C U LT UR A L & C R E ATI VE E CO NOM Y ?

T HE SCOPE O F T H E C U LT U R AL & C R E ATI VE E CO NOM Y

A HOLISTIC UNDERSTANDING OF THE CREATIVE ECONOMY

Heritage Literary Arts Film Virtual Reality (VR) Artificial

The creative economy is estimated to

K UA L A LUM PU R’S CU LT U R A L &

• With a population of over 7 million • There is no formalised set of strategic,

• The city is vibrant and alive with • The culture of entrepreneurism

“Unlocking the potential of the creative economy involves

However, certain shortcomings need to be addressed as we develop said approaches:

To quote the late Steve Jobs:

We must develop dedicated creative business

+ Important drivers of cultural tourism – enriching the experience of the city.

+ Significant generators of knowledge – nurturing + An early adopter of digital technology, generating

+ A driver of innovation across other sectors – influencing the aesthetic and

+ An important contributor to tourism – giving personality to the offer and

+ Design is central to the innovation capacity and competitiveness of the overall

+ Design offers solutions to some of the challenges of large-scale urban systems

+ Textiles activities are big employers and important contributors to cultural

+ The largest part of the cultural and creative economy – in terms of

+ Broadly, the fastest growing part of the economy – especially in

+ The most cluster-driven sector – co-locating to access talent,

+ A talent-hungry sector, with the highest proportion of graduate

+ An innovation-hungry sector, with R&D the lifeblood of growth

BASE LI N E DATA , VA L U E C H AI NS & I ND U STR Y O VE R VI E W

PERFORMING LITERATURE & MUSEUMS &

Contribution • RM113m • RM264m • RM31m • RM29.6m • RM585m • RM34m

Employment • 300 • 2,650 • N/A – included • 200 • 2,000 publishers • 270

Education • 11 private • 7 private • 5 private • Public higher • 4 universities • For artifact/paper

Funding • Government • Government grants • Under Dasar • Malaysia • N/A • Federal

Satisfaction • 3.88 • 3.96 • 4.15 • 4.16 • 4.21 • 3.94

1=very unsatisfied 5=very satisfied

Source: Consumer Demand Survey (Page 37)

INCUBATION FUNDING PRIVATE GALLERIES/ AUCTIONS

+ The Malaysian art scene, despite a slow growth, is maturing into a

+ Malaysia’s art scene has come a long way in terms of progress,

GALERI CHANDAN​ SEGARIS ART CENTRE​

CONTENT CREATION SUPPORT PERFORMANCE

FUNDING TICKET SALES

INCREASED + The Malaysian government recognises the positives of a flourishing

GALERI CHANDAN SEGARIS ART CENTRE