Kuala Lumpur, 26 March 2025 – In a landmark event at the Shangri-La Hotel Kuala Lumpur, leading artistes and composers’ associations, Karyawan and 3P Muzik, gathered with key industry stakeholders to discuss and advocate for a more transparent and equitable system of music royalty collection in Malaysia.
This event follows the recent announcement by the Minister of Domestic Trade and Cost of Living on 17 March 2025 regarding new guidelines governing the conduct of music royalty bodies. These guidelines, developed through extensive consultations with industry stakeholders, aim to protect the rights and interests of music creators, including composers and performers.
However, the announcement was overshadowed by the absence of three out of the five music royalty-collecting bodies licensed by the Ministry through MyIPO—MACP, PPM, and RPM—who reportedly disagreed with the guidelines and chose not to attend the event. These bodies later issued a joint statement requesting further discussions before the guidelines are implemented.
Advocating for Greater Transparency and Fairness
Karyawan, representing artistes, and 3P Muzik, representing composers, firmly support the new guidelines, arguing that they promote transparency and accountability while safeguarding the interests of the actual creators of music. Karyawan President, Dato’ Freddie Fernandez, praised the government’s initiative, stating, “These guidelines are a positive step forward in ensuring a fair distribution of royalties. They will bring about much-needed transparency and accountability within the system.”
Currently, music users—including broadcasters, hotels, shopping malls, and retailers—face multiple royalty payments for the same music due to the presence of five different collecting bodies. This has led to widespread dissatisfaction, with many advocating for a single licensing entity, similar to models used in the UK, Australia, and New Zealand. Such a system would not only simplify payments for music users but also ensure fair distribution of royalties among all stakeholders, including composers, singers, musicians, and recording companies.
Benefits of a Single Music Licensing Body
The proposed shift to a single music licensing entity would yield multiple advantages:
- Cost Efficiency: Reducing from five separate bodies to one would save millions in operational costs. Estimates suggest that individual bodies currently incur expenses of up to RM10 million annually. A single entity could potentially reduce these costs by more than RM10 million, allowing for more funds to be directed to artistes and composers or even reducing licensing fees.
- Better Government Oversight: A centralized body would be easier for authorities to regulate and ensure compliance with copyright laws.
- Enhanced Royalty Collection: A unified licensing system, with government support via SSM and enforcement officers, would improve compliance among businesses, significantly increasing royalty revenues.
Addressing Industry Concerns
The event also served as a platform for artistes and composers to express concerns over the governance of the existing royalty-collecting bodies. Issues raised included:
- Lack of transparency and accountability in royalty distributions.
- Voting and election systems that enable larger entities to dominate decision-making at the expense of independent artistes and composers.
- The monopolistic influence of recording companies and publishers over certain collecting bodies, which can disadvantage performers and songwriters.
Call to Action
Karyawan and 3P Muzik strongly support the implementation of the single music license system and urge the government to take decisive action in ensuring a fair and balanced royalty distribution framework. The associations remain committed to working collaboratively with all stakeholders to foster a harmonious and sustainable music industry in Malaysia.
