SMEs in events industry face tough road ahead

Singapore

THE small and medium-sized enterprises (SMEs) that form a large part of Singapore's event industry have had little choice but to adapt or fold as the pandemic wreaked havoc on the sector over the past six months.

The road ahead is not looking any easier, as the Jobs Support Scheme measures laid out in the last Budget come to an end. August will be the last month covered by the scheme, which also reduced financial support for some of these SMEs after the circuit breaker period of April and May. While event organisers were upgraded to continue receiving Tier 1 support of 75 per cent wage subsidies alongside venue operators, the rest of the industry has seen the wage co-funding stepped down to 25 per cent subsidies from June.

For event and talent management firm JNR Entertainment, adapting its business has involved renting out some physical assets like exhibition panels and tentage to construct makeshift resting areas for workers or quarantine areas for suspected Covid-19 cases. Part-time workers, who used to perform crowd control at events, are now activated to conduct temperature screenings at various locations.

To accommodate the shift to digital events, the company invested in new software to upgrade its capabilities from online feeds to high-resolution livestream services. It also brought into the main company an affiliated company that previously had a separate focus on creative services, digital marketing and social media management.

"We have to be not just a flagship store for events, but events and marketing in one arm," said Robin Goh, senior event manager. "Now, we need to have pre-events to get people to come for the actual event, so we will have live viewers. The marketing and events come hand-in-hand, whereas in the past we would separate them."

Adam Tan, founder and CEO of online events marketplace Effro, said he has seen emcees and performers move towards offering online services too.

"In the past, about 3 to 5 per cent offered livestreaming services on our platform. Now about 30 per cent are offering online moderation and online emceeing," he said.

However, he fears that demand for such work will still be too low to sustain livelihoods.

"The people in this industry are very passionate, but no pay is no go in this economy. They will start looking for other jobs and there will be a brain drain. That's a huge step back for us because the industry is only as good as the talent it has."

Similarly, he expects many veteran equipment and asset providers to exit the business when events restart, realising that their business models are no longer viable and cannot keep up with the new digital scene.

Still, he believes the shift to digital is a good one for an industry that has been reluctant to change.

"There will be a brain drain, and a reduction of legacy companies. But there will be a rise in new event organisers, who are younger, digitally savvy and able to handle online and physical events," Mr Tan said. "Everyone will be a lot more equipped with digital solutions, project management, customer relationship management, automation skills. I think it's a good push."

The Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS), Singapore Tourism Board and Enterprise Singapore are working on an Industry Resilience Roadmap that recognises the far-reaching impact of the pandemic on these companies.

The roadmap will cover not just the protocols needed to safely resume events, but also the digital foundations and risk-mitigated business models needed for firms to remain agile, and the new and certifiable capabilities required in the altered landscape.

Said SACEOS president Aloysius Arlando: "This crisis hasn't simply paused our plans, it has fundamentally altered the way we live, work and play. The rules of engagement have changed, and difficult decisions will have to be made, which is why we must rally together to strengthen our workforce and business capabilities to ensure we emerge stronger and better prepared for future crises."

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