NIGHTCLUB proprietors are in conversation with the Health Ministry to discuss ways to allow the industry to reopen safely.

They said while they understand the government’s concern in not allowing entertainment outlets to reopen, nightclub owners are facing debts and losses in the millions as the industry has remained dormant for over two years.

They said the government should regulate high-risk activities and not industries.

Jeremy Lim, vice-president of the Restaurants and Bistro Owners Association, said the group has reached out to Health Minister Khairy Jamaluddin to have discussions on the matter.

“Since his statement, we have reached out to him for engagement,” Lim told The Malaysian Insight.

“He is a person driven by data and science. We are not advocating for pre-pandemic opening, we are aware of the risks and we have families at home too

“We don’t want to become a hot zone for infection. We take our cue from European countries, we have an idea of what not to do.”

Lim, who is also the owner of nightclub Dragonfly KL, said that while it is still early days, the association is grateful to be given a seat at the table.

“There is ongoing conversation. The association is thankful that he has given us a seat at the table.

“In the coming weeks, hopefully we will have an understanding.”

The Restaurants and Bistro Owners Association had around 300 members in 2021, of which 20% have shuttered since. About 10-15% of its members consist of nightclub owners.

Lim said the government should also understand that working in the entertainment sector is not merely a job for many, it is also a passion too.

“Music is not a hobby for some people, it’s a livelihood.”

Earlier this month, Khairy said that nightclubs will remain as a prohibited activity even as the country transitions to the endemic phase on April 1.

Khairy said nightclubs were deemed as high-risk locations due to the nature of the premises and activity.

Let us pivot

Lim said if the government insists on not allowing entertainment licence holders to operate, it could at least consider letting them run other types of businesses.

“We just want entertainment licence holders to pivot, changing the space to restaurants, gyms or event space, without having to cancel our entertainment licence,” he said.

F&B outlets usually hold a restaurant licence. In order to serve alcohol, they would need to get a liquor licence.

For clubs, they would also have to apply for an entertainment licence, which is hard to come by, Lim said.

Lim said he has had to let go of a quarter of his staff and was facing about RM1 million in debts.

“We had to let 25% of our staff go. We felt that even if we can reopen, they will be redundant. They were able to get some money from the Employment Insurance System (EIS).

“The real problem is creditors, as we buy stock on credit.  Thankfully, most of them are understanding. As and when we have money, we clear our debt.

“We had like RM1 million in debt, now we’re almost done paying it. F&B people are resilient. Just give us a level playing field and we will bounce back.”

Lim’s landlord, too, has been understanding enough to make a flexible arrangement in payment terms.

Government aid in the form of wage subsidy also helped pay staff salary, he said.

Closure will affect tourism

Kelvin Lam, general manager of TREC KL, which houses clubs such as Zouk KL, The Iron Fairies and Le Noir, said business volume has dropped by 60-70%.

TREC KL is an entertainment venue endorsed by the Ministry of Tourism and Culture as part of KL’s Master Tourism Plan 2015-2025.

“We are seeing huge losses. Business sales dropped 60% to 70%. It is really sad and bad.

“The old employees are jobless and some are doing part-time jobs,” he said.

Lam said the government’s hesitancy to allow clubs to reopen may drive tourists away.

“In my view, it badly affects the tourism industry as foreign tourists might not want to travel to Malaysia while entertainment sectors are not allowed to operate.

“Malaysia’s economy will also be greatly affected.”

Clubs can take certain measures such as mandatory testing for customers to allow entry, he said.

“We can request that visitors do a self-test before allowing them to enter the premises.

“We can also impose conditions that only fully vaccinated visitors are allowed to enter and to also limit seating capacity and practise social distancing.

“This can help to prevent the spread of Covid-19, like what we have evidenced from other sectors that have been allowed to operate.” – March 22, 2022.