The effect of sport industry towards local economy.

The economies of the countries all over the world are not always stable that is why the government always look out for the new source of economy, the same situation goes to our beloved country; Malaysia. Nowadays, we can see that people are tend to attract more towards the sport events such as biking, marathon, swimming and other sport activities. The local economy gets some income with the entire sport event that being held in our country through the sport industries also known as sport business.

The sports business means many different things to different people. This is a truly global industry, and sports stir up deep passion within spectators and players alike in countries around the world. To business people, sports provide a lucrative and continually growing marketplace worthy of immense investments. Business people gain profit through the sport industry, which is the manufacturing of sport related goods, services and ideas with the combination of sport activities, mass media and politics.

In order to be a developed country as same as Western countries, Malaysia had to organize more sport event in a year. This would increase the economy through the sport tourism which is attracting people all over the world to attend the event that being organize not only by Ministry of Sport, also by private sport company. When the foreign tourists come to see the sport event in our Malaysia there will be currency exchange, which is gives benefits towards our economy, this is because usually other country has higher currency than ours that is why it can improve our country.

Moreover, despite the presence of local raw materials and manpower, the manufacturing of local sporting goods also gives major impact towards our economy. For example every two year our country organize Sukma sport, and of course there will be merchandise for those who are interested, this is one of the way how the money flow in sport industries. Furthermore, local sporting goods also give profit to the economy because the manufacturing fees is usually lower than selling price, this is due to the low salary that have being given to those who work at the plants manufacturing the goods.

To sum up, with this, government should give the sport industry an opportunity to broaden their business. It is undeniable that sport industries also contribute to raise the local economy.

done by:

Nur Hidayah bt Mohamed Faudzi

103517