Malaysia in need of extra space

Malaysia is stable and prosperous with a healthy GDP and booming manufacturing and services sector. By contrast with most of its neighbours, however, the country has been a relative latecomer to the world of international exhibitions.

Since the opening of the state-of-the-art Kuala Lumpur Convention Centre (KLCC), the industry has been spreading its wings, although it is still some way from soaring with the regional high-flyers. Venues are busy, but for the moment they remain in short supply and Malaysia still lacks a single venue with large-enough dimensions to enable the country to bid for really big international events. There is considerable talk about a purposebuilt exhibition centre for the capital, maybe even a fast-track project. But for the moment, at least, it seems that no one is announcing any firm plans. While KLCC serves its purpose admirably as a convention centre, professional organisers say the space is too restricted to accommodate big, stand-alone trade shows. The halls are narrow and the largest measures only about 10,000 sqm. Other options Alternative venues exist in Kuala Lumpur and elsewhere in the country, although they are generally limited in size and facilities. With its total of 30,000 sqm of exhibition space, including its largest hall measuring approximately 16,500 sqm, the Malaysia International Exhibition & Convention Centre (MIECC) at MINES Resort City is still the country's largest single exhibition venue. But its location is far from ideal and access is problematic. Ian Roberts is general manager of Malaysian Exhibition Services (MES). He is also vice-president of MACEOS (the Malaysian Association of Convention and Exhibition Organisers and Suppliers). He sees Internationgreat potential for Malaysia's exhibition sector, saying that the country is uniquely placed to develop as a CEI destination on account of the cultural crossroads that it occupies as a moderate Islamic English-speaking country. "Prior to the opening of the KLCC, Malaysia was finding it difficult to compete with Thailand and Singapore, to attract international events," says Roberts. "The opening has enabled a far greater number of international exhibitions to be held in Kuala Lumpur." Big events Major events in Malaysia's exhibitions calendar include Oil & Gas Asia (June 2007) and Defence Services Asia, the leading Asian events for their respective industries. The country's strong manufacturing base creates new opportunities for exhibitors and buyers alike. One of the strongest showcases for local industry is the annual Malaysian International Furniture Fair (MIFF), which attracts considerable international interest. This year's event filled all available space in KLCC and Putra World Trade Centre (PWTC). In March next year it is scheduled to fill three venues simultaneously, occupying 90,000 sqm. According to Tourism Malaysia's acting director of conventions, Zulkefi Haji Sharif, Malaysia International Aerospace Expo 2007 is expected to put the country's exhibitions industry on the map. Scheduled to take place in the Asia Pacific Auction Centre at Subang Selangor, it is expected to attract upwards of one million visitors. Looking further ahead, one of the most prestigious upcoming events is the World Gas Congress in 2012. "This will be an excellent showcase for Malaysia in general and for its exhibitions and conventions industry in particular," says Roberts. Marcel Ewals, managing director of Asia Congress, has just attended World GAS in Amsterdam, where the event occupied 30,000 sqm. "Will 10,000 square metres be enough in Kuala Lumpur?" he asks. Looking forward Next year sees the 50th anniversary of Malaysia's independence and the government is committed to promoting Malaysia's exhibitions industry as part of the general push for the tourism sector leading up to 'Visit Malaysia Year 2007', says Haji Sharif. "The government works closely with the Malaysia Industrial Development Authority, Malaysia External Trade Development Corporation, Tourism Malaysia and others," he says. Karen Pereira is business development manager of Asia Congress. She sees Singapore as Kuala Lumpur's nearest rival when it comes to competing for events. She says Malaysia has some clear advantages, not least in the area of costs. "Malaysia is definitely cheaper because of the exchange rate and there are good, inexpensive flights into Kuala Lumpur. The new KLCC is a major asset as it is right in the heart of the city and very conveniently located for easy access by public transport," she says. Since the opening of KLCC some of MIECC's supporters have already switched their allegiance, despite the higher charges at the new venue. KLCC sees itself as helping to grow the market for Malaysia's international specialist niche tradeshows, says the centre's spokesperson. "The new venue has already captured 59 per cent of the main exhibitions held in Kuala Lumpur on a regular basis. Organisers regularly comment that their visitor numbers increased by as much as 20 person when they hold events at the centre," says the spokesperson. Jessy Leong, General Manager of MINES Exhibition Management, pins high hopes on some major upcoming events to bring MIECC to the forefront, including the high profile ASEAN-China Agriculture Showcase 2006. The second such event, it will be held in conjunction with the inaugural Coffee & Tea Asia showcase in December this year. Typical of newcomers to KLCC is Koula Karayiani, international C&E operations manager of PennWell UK. The company's trailblazing OffShore Asia Event in January proved so successful that they have booked more space at KLCC for a return show in January 2007. "As the launch event we feel that it was a success," says Karayiani. "The KLCC operations and catering team offers a top-class service and are professional, efficient and very helpful. The KLCC venue is absolutely beautiful. We are very much looking forward to coming back next year with a growing exhibition floor and even more visitors." The event attracted 33 exhibiting companies from 30 countries and drew a total of 870 visitors including conference delegates. Karayiani says the consensus was that this was a very creditable result for a new show. "Everyone liked the event. We hope it will grow, which is why we have booked a bigger hall the next time around," she says. Karayiani says PennWell chose Kuala Lumpur for a number of reasons. "We analysed costs in different places: Thailand was a possible alternative. But KLCC was brand new, the cost was okay and we felt it would work for us. "Access is easy from almost everywhere and that's important for an international show. KLCC gave us considerable flexibility, which we needed as it was our first show and ahead of time we were not sure how it would actually go."