NIGHTCLUBS have been almost full since May 15 when they were allowed to resume operations after two years of closure due to the Covid-19 pandemic, industry players said.

The reopening, though just less than a week ago, is keeping industry hopes high that business can return to pre-pandemic levels sooner than many other sectors still struggling to recover.

Khoo Kong Ek, who is with Persatuan Pengusaha Pusat Hiburan Negeri Johor – an association of nightclub proprietors – said his nightly checks on association members since May 15 has found many of them in full swing.

“Operators are very happy. I think in three months’ time we can come to a better conclusion on the trend.”

Clubbers are returning to their favourite hangouts and for Johor, business is boosted by free movement across the Malaysia-Singapore border, Khoo said.

“The business of nightclubs in Johor Baru will be better than in other states because there are still many Singaporeans or Malaysians working in Singapore coming back here.”

Khoo said industry players are also mindful of the lessons learnt from the Covid-19 pandemic and are discussing among themselves on what to do for business survival should there be a new virus outbreak.

“One of the lessons is to pivot quickly to a restaurant or food and beverage business as this will help reduce losses, since nightclubs typically also serve food.

In Johor Baru, Khoo said smaller nightclubs have reopened and those that are taking their time to restart are the larger establishments.

“The larger ones are probably facing funding issues as they have arrears in rent, maintenance bills and other costs. But I believe they will reopen sooner or later.”

Reopening challenges

Federation of Malaysian Entertainment president Liew Poon Siak said some nightclub proprietors have to renew their business licences before reopening their doors to patrons.

“There have been reports from operators that it is difficult to obtain approval from the relevant authorities. There is delay in processing, such as in applications for liquor licences, and all this makes a smooth reopening difficult.”

Liew said some outlet operators also do not have enough staff to resume business as many were let go during the pandemic.

“It takes time to do recruitment. I don’t think the nightclub sector can return to what it was before in so short a period.”

De Cool lounge owner Desmond Wee told of his difficulty in renewing his Johor Baru-based outlet’s entertainment licence.

He was told he had to pay the full sum of fees for three years, which included fees for 2020 and 2021, when nightclubs were shut.

“Of course nightclub operators are upset. We want to renew our licence to resume business operations but this is what we are told. The officials just said it is an instruction from the government.”

Entertainment licence fee for a year can cost more than RM2,000, depending on the size of the club’s premises.

Wee, who is also vice-president of the Johor Entertainment Association, said he cannot predict when the nightclub sector will fully recover.

“Now that all other activities have also resumed, people have more choices as to what they want to do. But what’s clear is that business for us has definitely improved now that nightclubs have been taken off the list of banned activities.”

The National Security Council and Health Ministry gave their green light for nightclubs to resume operations at full capacity, including dancing, starting May 15.

Entry conditions are an RTK-antigen self-test performed within 24 hours before entering the venue and patrons’ MySejahtera status must also show that they are “low risk”. The nightclub management is allowed to impose a RTK-antigen test on the patron before entry if he or she has not taken a test.

Once inside, patrons must be masked except for when they eat or dance. 

Khoo urged those wanting to return to nightclubs after a two-year break to adhere to these rules, as they are for the safety of everyone on the premises.

Wee believes customers will do so happily, as it has been more than two years that avid clubbers have been deprived of their favourite pastime. – May 21, 2022.