The prospects are bright in Malaysia’s sports sector, as growth in the industry could lead to economic development for the nation. Datuk Seri Dr. Mohd Uzir Mahidin, the chief statistician of the country, remarked on the sports industry’s contribution towards the cumulative economy in conjunction with its economy’s growth potential along with advising investors to capitalize on the emerging opportunities.
A Billion-Ringgit Game: The Sports Industry’s Economic Impact
The DOSM report shows the contribution of sports to the economy has been increasing year on year and is expected to touch RM 49.5 billion in 2022, with gross value addition from the sector amounting to RM 19.6 billion. With these figures, it is safe to say that sports is an industry and has now subsumed its traditional status as a mere pastime.
A Growing Workforce: Employment Opportunities in Sports
Sports has become one of the major service industries and, as a result, provides a vast array of services and activities. This has positive implications on the employment level, as there is a growing workforce, now approximately 194,400 employed within the industry, which translates to 1.3 percent of the entire workforce in Malaysia.
Sports Services: The Preeminent Sector
Data from the DOSM indicate that sports services form the pre-eminent sector of the industry, with its economic contribution estimated to be 39.9% of the total. This means that activities such as organizing sports events, operating fitness centers, and sports tourism for foreigners are important for the Malaysian economy.
An Analysis: Increase Continues After 2017
To understand how the industry has grown, it is necessary to analyze historical data. In the past, a 2017 report by DOSM had estimated the value of the sports industry to be RM 18.8 billion alongside a total employment of 36,511 in four sectors: sports services, manufacturing of sports equipment, construction of sports facilities and sports retail. A comparison of these figures with 2022 statistics shows a remarkable increase in economic contribution and employment, highlighting the growth prospects.
A Healthy Nation: Shifting to Healthier Lifestyles
The social value of a robust sports industry was discussed by Mohd Uzir in particular. “Active citizens contribute to a healthy nation, reducing the burden on public healthcare facilities,” he said. Mohd Uzir has been noted for supporting increased involvement in sports for the improvement of public health, as well as healthcare costs.
Golf’s Legacy: A Catalyst for Tourism Development
Mohd Uzir excavated the impact of golfing and how it drew distinct hardware tourism to Malaysia. “Golf used to pull a lot of traffic for tourists from South Korea and Japan.” Although some argued that golf is an upper-class sport, it had remarkable impacts economically in terms of providing a lot of employment opportunities to golf club attendants, caddies, and other auxiliary services. The tourism that came with golf competitions also greatly enhanced the services and hospitality industry, retail shopping, and tourism.
Running’s Rise: Emerging Popular Activities
“There is a clear shift in the trend now. It used to be golf, but now running is more popular,” says Mohd Uzir. The large number of athletics clubs all over the country is now a major business factor. “In my club, we have outstation runners that come to jog in Putrajaya after meetings before heading back home,” he adds.
Merchandise and Events: A Booming Running Economy
The favorable sporting conditions have contributed to a market catering to runners, which includes their associated goods and services. For example, many cruise clubs generate merchandise for their members, which not only helps in revenue intake but also fosters customer loyalty. Local economies also benefit from the influx of running events and national and international participants. Additionally, there is an increasing demand for running shoes along with other fitness accessories like smartwatches, which monitor vital signs and distance travel, offering new avenues for businesses.
Malaysia’s Competitive Edge: Sports Exports
The country has also shown sharp rises in the export of sports-related goods. According to DOSM statistics, Malaysia exported sports goods worth RM 9.7 billion in 2021. And 11.5 billion in 2022, which forms 0.8% of the total exports of the country. The increase in exports proves to be beneficial with a surge in the importation of sporting goods from RM 5.2 billion in 2021 to RM 6.1 billion in 2022. This means there is a positive net export of sports products, indicating a trade surplus of RMB 5.4 billion in 2022. This shows an improvement in competitiveness on the international front for Malaysia.
A Call to Action: Useful Opportunities Available
Mohd Uzir is hoping that the publication of these statistics will induce policymakers and captains of the industry to pay attention to the gaping opportunities that lie in the sports industry and devise means to enhance revenue and growth. He underlines that there is plenty of room for development in the provision of sports services, the production of sports goods, and the construction of sports facilities. By placing focus on these factors, the country can enhance its economy and develop a stronger and healthier society.
