Malaysia Stadium Corporation (PSM) has entered into a partnership with US company ASM Global to unlock the full potential of KLSC.
The government wants to exploit the value of KLSC in a competitive regional landscape and to keep up with the times as well as the new needs of the nation.
PSM, a statutory body under the youth and sports ministry, will sign a memorandum of understanding (MoU) with ASM Global in London on Saturday.
The signing ceremony at Wembley Arena will be witnessed by youth and sports minister Ahmad Faizal Azumu, who led a Malaysian delegation in April to visit several arenas managed by ASM Global in the US and England.
Faizal made the trips to explore ways to develop KLSC as a premier destination in global sports and events and to create a more dynamic business model for the hub.
With the collaboration, KLSC will make it more accessible to the broader community, including schools and universities, in terms of sports, lifestyle, entertainment, leisure and social uses while maintaining its commercial sustainability.
The idea is to make it a community centre of sorts that will also generate income for small businesses.
Malaysians will be encouraged to develop an affinity with KLSC and to further build Malaysian pride in arenas such as the National Stadium and the Axiata Arena in Bukit Jalil.
The 87,400-seater National Stadium and the 16,000-seater Axiata Arena will join ASM Global’s worldwide network of more than 350 arenas that includes 27 of the most iconic stadiums.
ASM Global will partner Malaysian company Sportswork Sdn Bhd to enhance operations, create events, redefine visitor experience, implement the latest technology and elevate food and beverage offerings.
Of significant benefit to the local industry will be the expansion of the sports tourism sector, new jobs, knowledge sharing, wide ranging event network and technical capabilities.
The Malaysian Investment Development Authority estimates that sports tourism generates RM5 billion annually to the economy.
The showcases that are being considered include marquee sporting events, major concerts and musicals, world-class forums, trade shows, national activities and community-based programmes.
Malaysia has lost its lead as a destination for live sport and entertainment in the region and KLSC is seen as the catalyst of this revival with a multitude of events.
There is increased competition in the region as new sports facilities are being developed in other Asian capital cities and KLSC’s closest competitor is the Singapore Sports Hub and the new Jakarta International Stadium.
The Singapore government will take back ownership and management of the Singapore Sports Hub from Dec 9, terminating the public-private partnership agreement 13 years ahead of time.
It was done to drive stronger social, sporting and economic outcomes for Singaporeans, to maximise the potential of the sports hub, and to take a stronger hand in developing their own sport and lifestyle industry ecosystem.
“Gone are the days when you build something, people will come. What you build must come with the right mix of activities to complement the space, technology and hardware,” said a source with knowledge of the PSM-ASM Global deal.
He noted that Indonesia has estimated the two-night Justin Bieber concerts in November at the 20,000-capacity Stadion Madya – Gelora Bung Karno – will help generate US$25 million to the country.