Malaysia moves on

It may have taken time, but Malaysia's exhibition industry is experiencing an increase in business. Exhibition venues and organisers recorded a substantial increase in 2000 over 1999 and are hopeful 2001 will be even better. "We achieved almost 50% growth in 2000 over 1999," enthuses Malaysia International Exhibition & Convention Centre (MIECC) general manager Mr Eugene Yau. "As for 2001, even though many have predicted a challenging year, MIECC will work toward doubling our business." Following a slow couple of years after the economic downturn, organiser Malaysia Exhibition Services (MES) is now experiencing twice the business volume. "The years 1998 and 1999 were not great for exhibition organisers outside of Singapore and Hong Kong," MES business development director Mr Ian Roberts says, "and in 2000 we organised two shows. This year we have five." MES' shows include Elenex Malaysia 2001 and ProPak 2001 and has already confirmed three major shows in 2002 including the Defence Services Asia exhibition. Reed Exhibitions Companies (REC) Malaysia has also announced a double-digit growth in show sizes last year compared to 1999. "The year 2000 was challenging for us but, in general, the economic recovery has aided our business growth tremendously," says REC Malaysia general manager Mr Steven Thong. "I foresee similar growth, if not better in 2001. There are already signs of hall bookings filling up fast for the next two years." Both the financial crisis and the fact Singapore and Hong Kong were established players in the conference, exhibition and incentive (CEI) sector affected Malaysia's ability to the win many of the region's major trade shows. This is not the case any longer. Malaysia is gearing up to become a major competitor to these destinations. By next year, there will be three dedicated exhibition and convention centres in Kuala Lumpur and its vicinity, more than Singapore or Hong Kong. A RM1billion (US$260million) centre at Subang is being developed by Malaysian Airports Berhad at the former Sultan Abdul Aziz Shah International Airport and will have 10,000sqm exhibition space when finished in 2002. The centre has been well received by organisers. "It means Malaysia can bid for larger events, such as Telecom Asia, which could be held at this venue," says REC's Mr Thong. To be named the National Exhibition and Convention Centre (NECC), it will offer a runway access for Boeing 747s, with a dedicated taxiway leading to the exhibition hall. Further plans for supporting infrastructure include a five-star, on-site hotel and a 5,000-space car park. MES' Mr Roberts speaks favourably about the exhibition venues already available. "Both the MIECC and the Putra World Trade Centre (PWTC) are as good as any exhibition venues you will find in Singapore," he says. MIECC has the capacity to hold up to 10,000 delegates and also offers the International Design Export Centre, a permanent exhibition of Malaysian-made products on a dedicated level. Encouragingly, the MIECC is looking to expand in the future. "MIECC has plans to extend its capacity," says Mr Yau. "However, the time frame and the extent of the project would depend on the industry demand, viability and the cost of building and operating it." The challenges from the CEI industry is one MIECC is rising to and has already established its own dedicated events department. Managing up to ten events a year, the venue will host the Malaysia Furniture Export Exhibition 2001 and the World Orchid Show in 2002, among others. Exhibitor Northern Territory convention bureau manager Mr Peter Dunn was impressed with MIECC's facilities when he exhibited at trade show IT&CMA last year. "The venue works well, particularly as part of the MINES Resort City, with five-star hotels such as the Palace of the Golden Horses and the Mines Beach Resort. It's an interesting concept and has been well done," he says. Until MIECC opened in 1997, the sole purpose-built exhibition venue in Kuala Lumpur was the PWTC. But the centre's manager international marketing Mr Nor Azmi Sulong says exhibitors and show organisers will take Kuala Lumpur more seriously if it offers venue choice. "Competition between PWTC and MIECC is healthy, but we complement each other rather than compete," he says. "For years people were saying PWTC had the monopoly of the market because there was no other venue. Now organisers have a choice of venues." The PWTC is in the centre of Kuala Lumpur, a position Mr Nor believes gives a competitive edge. "PWTC is more established and clients benefit from having more experienced staff," he adds. The centre is the largest within the city, offering three exhibition halls, plus a large outdoor space to handle tented exhibitions and a foyer. The exhibition halls and foyer covers an area over 12,000 sqm. The venues are not limited to Kuala Lumpur. An hour out of the city is Genting Highlands. Comprising the Genting International Showroom - with capacity for 1,600 - and the Arena of Stars with capacity for 6,000, the complex has the advantage of six on-site hotels, including a 6,300-room First World Hotel by the end of 2002. The Genting International Convention centre plans to expand and a grand ballroom and convention centre on level T1 is scheduled for the end of 2001, giving an exhibition area of 9,850sqm. For smaller exhibitions, the grand ballroom can be divided into four smaller exhibition halls. "We're predicting better growth in 2001 than in 2000 with this new centre," says assistant vice-president MICE marketing Mr Alloysius Teng. "And we're looking to further develop the market from China, India, Singapore, Taiwan, Thailand and Australia." To capture these markets, Malaysia needs promotion from the government and the tourism board, as well as the individual exhibition centres. Working hand in hand with the Malaysia Tourism Promotion Board (MTPB), the Malaysia External Trade under the Ministry of International Trade and Industry (MATRADE) has embarked on promoting the country for trade exhibitions. Yet Genting's Mr Teng believes more is needed to help promote Malaysia's exhibition facilities and know-how. "The country would really benefit if the MTPB set up a dedicated exhibition and convention bureau," he says. REC Malaysia's Mr Thong agrees further promotion is required. "We need a focused marketing campaign separate from the general tourist campaign in order to create more impact in marketing Malaysia as a choice destination," he says. "This must be done as a concerted effort by the government and it is crucial we implement this fast to avoid being left farther behind by the more established destinations." Malaysia is advantageously located within Asia to encourage exhibitors to choose the destination and its economic growth, reportedly above 5.3% last year, according to Mr Thong, and its stability creates a conducive environment for businesses and foreign investments. "There are cost advantages too compared to other Asian destinations," adds MES' Mr Roberts. Add all these points together and it is clear Malaysia, particularly Kuala Lumpur, is becoming a serious challenger to the region's more established exhibition destinations.