Companies stand to benefit if mega concerts are held in Malaysia

Swiftonomics, a term familiar to many, describes the phenomenon wherein Taylor Swift's concerts drive substantial economic growth in the cities where she performs. Economists estimate that these concerts contribute approximately S$300 million to S$400 million, equivalent to 0.2 percentage points of GDP, to Singapore's economy in the first quarter alone. This is why many countries are eager to host mega concerts as a means of bolstering their economies. If Malaysia were to host such mega concerts, several companies would stand to benefit.

1. $GENM / 4715 (GENTING MALAYSIA BERHAD)
Genting Malaysia, an integrated resort company, operates the renowned Resorts World Genting, a preferred venue for world-class entertainment events, including concerts. With a capacity of up to 5,000 seats, the Arena of Stars is Malaysia's premier concert and event location. It’s cool climate makes it one of the most popular concert venues in the country, likely leading to increased revenue streams from ticket sales, hotel bookings, and gaming activities. Genting Malaysia's integration of entertainment and hospitality positions it well to capitalize on the growing demand for concert-related experiences.

2. $KLSE-CAPITALA
As one of Southeast Asia's largest low-cost carriers, the company stands to gain significantly from the resurgence of the concert scene in Malaysia. AirAsia's extensive network of domestic and international flights would play a crucial role in transporting artists, crew members, and concertgoers, potentially driving up passenger traffic and improving the airline's financial performance.

3. $YTLREIT / 5109 (YTL HOSPITALITY REIT)
YTL Hospitality REIT, listed in 2005 with a current market capitalization of approximately RM2.03 billion, boasts a large portfolio of premier hotel assets in Malaysia. With the influx of foreign concertgoers into the country, the hotel business could see direct benefits. Moreover, fans of international artists may have higher spending power and be willing to stay in these premium hotels, further boosting revenue.

4. $PAVREIT / 5212 (PAVILION REAL ESTATE INVESTMENT TRUST)
In addition to hospitality, retail spending from tourists and foreigners could increase with the hosting of mega concerts. Mega shopping malls such as Pavilion Bukit Bintang and Pavilion Bukit Jalil, situated near the Axiata Arena, could become hotspots for concert attendees. Furthermore, these malls are often used as venues for pre-concert events such as meet-the-artist sessions and promotions.