Malaysia Movie Theaters Go Dark Amid COVID-19 Recession

Indefinite Closure Starting This Month
New Release Delays Worsen Deficit Vicious Cycle
Major Theaters Resort to Popcorn Delivery as Last Resort

[Asia Economy Kuala Lumpur Hong Seong-ah, Guest Reporter] Due to the spread of the novel coronavirus infection (COVID-19), movie theaters in Malaysia have begun temporary closures this month. While major cinema chains in the US and Europe are shutting down one after another, Southeast Asia has also not been able to avoid the cinema recession.

According to local media such as The Star on the 10th, cinema operating companies will begin indefinite closures starting this month. However, Golden Screen Cinema and TGV Cinema, which account for 55% of the market share of theaters in Malaysia, will suspend operations only for this month.

As the spread of the novel coronavirus infection (COVID-19) prolonged, Malaysian cinemas began temporary closures starting in November. Source: TGV Cinema Facebook

Malaysian cinemas were closed from March to the end of June when COVID-19 began to spread in earnest. Although they resumed operations from July 1, producers postponed the release of new films one after another due to COVID-19, causing cinema deficits to increase. A vicious cycle occurred where audiences decreased due to COVID-19, and with no new releases, audiences declined further. Golden Screen Cinema recorded a loss of up to 6 million ringgit (approximately 1.63 billion KRW) in ticket sales due to closure measures in the first half of this year.

In Malaysia, blockbuster films such as Skop Production's "Polis Evo 3" and "Abang Long Fadil 3" were scheduled to be released this year but have all been postponed to next year. Yusof Haslam, CEO of Skop Production, stated, "Both films had budgets exceeding 10 million ringgit (approximately 2.8 billion KRW)" and added, "With social distancing between seats, audience numbers have dropped by up to 70%."

In particular, from the 7th, conditional movement control orders were declared in regions such as Penang, Perak, Melaka, and Johor, delivering a direct blow to cinemas. The movement control orders in Kuala Lumpur, Selangor, Putrajaya, Labuan, and Sabah, which have been under lockdown since October, were also extended. As a result, it is forecasted that the total loss in the Malaysian cinema industry this year will reach -475 million ringgit (approximately 129 billion KRW).

In Malaysia, COVID-19 infections continue to spread, with daily new cases consistently in the 1,000s. On the 3rd, 1,054 new COVID-19 cases were confirmed in one day, surpassing 1,000 for the first time in a week since the 26th of last month. On that day, 12 deaths were recorded, marking the highest daily death toll.

Malaysian cinemas are struggling to overcome the crisis. They have started online delivery services and are planning events where various content can be experienced in theaters.

Top companies such as Golden Screen Cinema and TGV Cinema have begun selling concession foods like popcorn and chicken nuggets, which were previously sold only in theaters, through the delivery service app GrabFood. They have also started selling gifticons and movie vouchers online to attract audiences. Golden Screen Cinema is preparing stand-up comedy and live event shows in theaters and is considering using lobbies as cafes and co-working spaces.

Mohit Bagava, Sales and Marketing Team Leader at TGV, emphasized, "The film industry sees the causes of the crisis as the postponement of releases and social distancing between seats," adding, "To overcome the crisis, the government should provide subsidies so cinemas can endure for a long time, and distributors should establish policies that allow for more active releases."

This content was produced with the assistance of AI translation services.