Economics of hosting 2026 Games
THE prospect of hosting the 2026 Commonwealth Games prompts a crucial evaluation of Malaysia’s current economic situation compared to that of the late 1990s when the country hosted the 1998 Games in Kuala Lumpur.
The 1998 Games was not just a sporting celebration but also a milestone in Malaysia’s journey towards globalisation and modernisation. It was the first of its kind to be held in Asia and marked Malaysia’s emergence on the international stage.
Economically, the 1998 Games spurred infrastructure development, including the construction of the iconic Bukit Jalil National Stadium and an athletes’ village (pic), which later transformed into a high-demand residential area.
Tourism flourished with a notable increase in international visitors while local businesses enjoyed the ripple effects of the heightened economic activities.
It was a period of robust economic growth for Malaysia, uplifted by the Asian economic boom of the 90s.
Fast forward to today, Malaysia’s economic environment presents a mix of challenges and opportunities. The global landscape has changed dramatically with the Covid-19 pandemic having left its mark on economies worldwide, including Malaysia’s.
However, the nation has shown resilience – gradual recovery is underway, bolstered by strong exports, particularly electronics, palm oil and other natural resources.
The Malaysian government’s focus on the digital economy and sustainable development, which aligns with global trends, offers a fresh perspective on hosting international events like the Commonwealth Games.
Deciding on whether to host an event of this magnitude entails weighing the considerable costs against the potential longterm benefits.
Infrastructure development, while costly, could lead to lasting benefits if aligned with the country’s broader economic and urban development goals.
Hosting the Games could also stimulate the local economy through job creation, tourism and international exposure.
However, it’s crucial to consider the lessons learned from past international sporting events, where some hosts faced financial strains and underutilised facilities post-event.
The comparison between 1998 and now reveals a more complex economic landscape with higher stakes and greater uncertainties.
Yet, it also presents an opportunity for Malaysia to showcase its resilience, innovation and hospitality on the global stage.
The key will be in meticulous planning, leveraging the event for sustainable development, and ensuring a legacy that benefits Malaysia long after the closing ceremony.
Youth and Sports Minister Hannah Yeoh has said that the Cabinet will discuss the matter next week.
As they deliberate the next steps, the memories of 1998 should serve as a reminder of the country’s capability to host a world-class event, and the transformative potential of the Commonwealth Games.