Plenty of room for growth in Malaysia’s sports industry, says chief statistician

Malaysia’s Chief Statistician, Datuk Seri Dr Mohd Uzir Mahidin (main image), believes the country’s sports industry has room for growth after contributing RM49.5 billion to the economy, with a gross value added of RM19.6 billion in 2022.

Employment in the industry also expanded to 194,400 people, making up 1.3 per cent of Malaysia’s total workforce, with the largest sector being sports services (39.9 per cent).

The Department of Statistics Malaysia (DOSM)’s 2017 report valued the country’s sports industry at RM18.8 billion, employing 36,511 people across four sectors — sports services, manufacturing of sports products, construction of sports infrastructure, and sports trade.

“Active citizens contribute to a healthy nation, reducing the burden on public healthcare facilities. That’s why I strongly encourage more Malaysians to take up sports,” said Mohd Uzir, an avid runner and cyclist, in an exclusive interview with Twentytwo13 at his office in Putrajaya.

“That will also directly impact the sports industry, which has tremendous growth potential. Previously, golf was a major attraction for players from South Korea and Japan. Many perceive it as a sport for the wealthy, but it significantly benefited the country through employment opportunities — golf club staff, caddies, general workers, and more.”

Mohd Uzir pointed out that golfers rarely travel alone, leading to spillover effects in the hospitality, food and beverage, shopping, and tourism industries.

However, running has now overtaken golf as a major attraction. The rise of athletics clubs has turned into big business, with his own running club boasting over 500 members.

“In my club, we have runners from outstation who come to jog in Putrajaya after meetings before heading back to their home states,” he said.

“Many of these running clubs produce merchandise for members, creating a business element. Just look at the number of runs organised across the country. Each event attracts at least 1,000 participants, including international runners.

“Running shoes are a booming business too, with serious runners spending upwards of RM500 on a good pair — some even exceeding RM2,000. Then there are gadgets like smartwatches that monitor vital signs and track running distances.”

Mohd Uzir urged Malaysian companies to tap into these opportunities, as the sports industry extends beyond merely hosting events.

According to DOSM data, Malaysia exported RM11.5 billion worth of sports-related goods in 2022, up from RM9.7 billion in 2021, accounting for 0.8 per cent of the nation’s total exports. Meanwhile, imports of sports products rose from RM5.2 billion in 2021 to RM6.1 billion in 2022.

This resulted in a positive net export of sports products, with an RM5.4 billion trade surplus in 2022 — a reflection of Malaysia’s growing competitive edge in global markets.

Mohd Uzir expressed hope that by making these statistics available, policymakers and industry leaders would find ways to further boost revenue. He highlighted vast potential for expansion, particularly in sports services, product manufacturing, and sports infrastructure development.