KUALA LUMPUR, Nov 9 ― Counting down the days towards its closure, the Kuala Lumpur Performing Arts Centre (KLPac) pleaded to be allowed to utilise corporate donations to bear its hefty operating expenditures (opex).

Group general manager Ian Chow said currently, donations received were only allowed to be used for costs related to production of plays.

“It cannot be used for our opex…only for production purposes like holding musicals and theatres,” he told Malay Mail Online, referring to the donations.

“This is doubly hard for us because we cannot run the show if there is no money to run the place.”

It was reported that KLPac was at risk of closing down due to shrinking corporate funding.

The 12-year-old centre, which has been producing plays, does not have the resources to conduct necessary upgrades to upkeep the place.

The Malaysian Reserve had reported that the centre’s annual revenue from ticket sales is RM3.46 million, while the amount required for its upkeep is at least RM4.18 million. The rest of the funding comes from sponsorships.

The centre’s creditor list currently stands at RM460,000.

Chow said KLPac was located on a piece of land belonged to YTL Corporation and that the developer was among the main funders for the place.

“YTL has been very supportive as they have been giving RM500,000 annually to the centre,” he said.

Other donors, Chow said, include Yayasan Sime Darby, Mercedes-Benz Malaysia Sdn Bhd, JT International Bhd and The Actors Studio Seni Teater Rakyat.

An increase in tax deduction from RM500,000 to RM700,000 was announced in Budget 2018 to encourage sponsorship in the private sector in local and foreign arts, culture and heritage shows and performances.

News reports, however, said that organisations were not motivated to give away such sponsorships, mainly because government approval must be obtained. Organisations reportedly need an endorsement letter from the local council.

Commenting on this, the Tourism and Culture Ministry told Malay Mail Online that companies who wished to donate to arts and cultural development in the country were not compelled to do so.

In a statement, it said, the ministry’s role in the process was only to access and approve tax breaks.

Similarly, it said, the ministry had no powers over local councils on the need for organisation to reportedly seek an endorsement letter from the local authority.

KL City Hall could not be reached for comments at press time.