Sports And Youth Worthy Of Government Investment

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From Ahmad Faizal Azumu
The global sports market was valued at US$440.77 billion in 2021, and according to the global sports market report, this is expected to grow to US$600 billion by 2025.
For comparison’s sake, the global oil palm market was valued at US$60 billion last year. This gives us an idea on the enormity of sports as a business.
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In Malaysia, the department of statistics had valued the local sports industry at RM18.8 billion in 2017, and we have data that indicates more than RM845 million exchanged hands in the sales of sports and recreational items between 2018 and 2021.
The traditional belief that the money spent by the government on sports has no economic return is an old-fashioned view.
With the right emphasis on elevating the sports industry further, the returns for every ringgit spent can actually be multiplied in terms of economic and health returns to government coffers as a whole.
This is why, at the ministry of youth and sports, we have embarked on a sports satellite account which will allow us to keep track of every ringgit being earned and spent on sports-related transactions in the country, whether directly or otherwise.
This, in turn, enables us to prove to the ministry of finance and the economic planning unit that allocations channelled to the ministry are not a one-way expenditure but a form of investment that contributes directly to the country’s gross domestic product and overall socio-economic development.
This school of thought was one of the pillars behind the Kuala Lumpur Sports Industry Expo 2022 which was organised earlier this month.
This expo aimed to make Malaysia a regional sports commerce and technology hub which in turn will increase the value of sports commerce.
I hope this annual event grows in size and stature as more stakeholders join the fray.
The sports industry has a reputation for being a macroeconomy that relies on a top-down approach but the approach in Malaysia can be different.
I have always been fascinated by the little league industry in the United States which the Time magazine had valued at US$5 billion in 2017.
Of course, in terms of population, the little league in the US has many advantages, but the core principles remain and the main stakeholders are always the parents, communities and a strong sports culture.
This is why earlier this year, the ministry had embarked on the Malaysian sports league and other little league programmes across the nation, focusing on a few key sports as a start. This included futsal, badminton, sepak takraw, netball and 3-on-3 basketball.
To date, more than 200,000 young adults aged seven onwards have participated in this initiative. The health and economic benefits can be enormous when these programmes are organised every weekend throughout the country.
Not only in urban areas, where private leagues and classes have long been the norm, but also in semi-urban and rural areas where kids from every district and kampung are involved in sports in a continuous format throughout the year.
The response from the grassroots to these programmes has been outstanding, especially as we moved into the endemic phase of Covid-19.
If we manage to replicate and further enlarge the pool of participants every year, the spillover economic benefits can continue to be assessed by the satellite account.
It can be used by future administrations to further cement the notion that sports and youth is a worthy investment of government revenue.
But, revenue and returns are a bonus. The primary value in a vibrant sports industry is its ability to create a sporting culture that will seamlessly benefit every level of society.
It is hoped these initiatives will be carried on by the government, and efforts for a comprehensive national sports industry remain at the forefront of government policy. - FMT
Ahmad Faizal Azumu is the caretaker youth and sports minister.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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