Crazy Rich Asians: Singapore Nightlife in a Pandemic

This article is from our archives, originally written on September 11th, 2020

Source: Marquee Bay Sands

In Singapore, it is easy to feel distant from the pandemic. In the small city-state, with fewer than one positive case a day on average over the past two weeks and the lowest COVID-19-related death rate in the world, restaurants and malls are open, children are going to school, and cinemas are once again welcoming visitors. Singapore has remained in Phase 2 of its reopening plan since June 19th, and hopes to enter Phase 3, the ‘new normal,’ at the end of this year. While most businesses have been offered the opportunity to recover, the nightlife industry, including bars, pubs, nightclubs and karaoke bars, continues to be off-limits, likely until a vaccine is developed. Such businesses, where the allure of close contact and today’s need for social distancing are incompatible, must adapt  in order to survive. 

To Singapore, the nightlife industry represents a key part of the economy and of city life. As an island with scarce natural resources, the nation is dependent on its tourism industry. Somewhat aided by the success of ‘Crazy Rich Asians’, part of Singapore’s international appeal is its glitzy nightlife culture: from rooftop bars with a view of the iconic skyline, to themed nightclubs with ferris wheels and slides. However, in light of the pandemic, monthly visitor arrivals have decreased by  76%. If the tourism industry, and the nightlife sector in particular, enter a permanent recession, it is unlikely that Singapore’s economy will ever reach pre-COVID-19 levels of growth again.

With little to no revenue for nine months, Singapore’s karaoke lounges and nightclubs are finding it hard to pay rental costs. In a poll conducted by the Singapore Nightlife Business Association and the Singapore Entertainment Affiliation, less than 10 percent of respondents believed they would survive until the end of October. Small businesses have found it particularly difficult to buffer the storm of the pandemic. Ronald Ng, the director of Kloud Karaoke Lounge, said in a statement to the Straits Times, that “landlords chase us for rental… and it’s not a small sum… I don’t know whether we can hold on until next month.” Larger businesses are also not immune to the effects of the pandemic. Singapore’s most popular karaoke chain, Teo Heng KTV Studio, has been forced to close two of its 14 outlets. 

A few businesses have been able to innovatively adapt their business models to recover some demand. Zouk, a staple in Singapore’s nightlife scene pre-COVID-19, is now a spin studio by day, and a pop-up cinema club by night. Originally a nightclub, Zouk was a frequent haunt for tourists and locals alike, particularly famous for its music festival Zoukout. As one of the largest clubs in the city, Zouk’s movement, away from the nightlife industry could represent a larger cultural shift that many of its shuttered counterparts in the usually vibrant and bustling Clarke Quay area may soon be forced to follow.

In order to better utilise the space and maximise opening hours, Zouk has converted their lounge area into an eatery and the main room into a studio filled with spin bikes. The club is attempting to use its existing audio and lighting capabilities to deliver a theatrical experience in its new ventures. However, only a business as large as Zouk is able to bear such financial costs of converting. The process of obtaining the necessary licenses has been arduous and the company has incurred significant costs. Even these new revenue streams are only allowing the business to break even and retain their existing staff. 

Other businesses have been given two options by the government: to pivot like Zouk did, or to exit the industry entirely. The Singapore government will be introducing limited 2-3 month pilot programmes for 25 businesses to test whether the industry can reopen safely in a post-COVID-19 world. Such pilot programmes will rely on pre-event testing and extensive contact tracing efforts. Customers will be required to wear masks at all times, including on the dance floor. Businesses not participating in the pilot will receive financial and logistical support from government agencies. To pivot, businesses can receive a grant of up to $50,000. To exit the industry, businesses will receive a one-time payment of $30,000.

Zouk has welcomed the government’s efforts. Zouk Group Chief Executive Andrew Li said, "anything we can do to push ahead in terms of opening up this industry again in a safe manner is definitely welcome". However, other businesses have voiced major concerns regarding the viability of the new initiatives. Simon Sim, a committee member of the Singapore Entertainment Affiliation, explained that karaoke bars generally believe that the pilot programme is “not workable.” The largest concern is the mandatory COVID-19 test. The cost of the test, at approximately $200, may be too great for customers to justify a single karaoke session or clubbing trip.

Even with the financial aid given to businesses, the grants may be insufficient to cover even the cost of one month’s rental fees. Investment and bureaucratic costs to pivot or exit will be significant, as companies have to acquire specific licenses, renovate facilities, and comply with different regulations. Such grants will definitely not provide the flexibility necessary for small businesses to compete in the new markets they are attempting to enter, like the F&B industry or the office space industry. By accepting financial assistance, clubs may also lose their club licenses and will be legally unable to resume operations for 12 months.

Overall, even with the government’s help, the nightlife industry is unlikely to return to its former glory. COVID-19 may have permanently changed traditional means of socialization . In order to survive, nightclubs will need to quickly adapt to this ruthless new environment. As the rest of the world hopefully moves towards the ‘new normal’ equilibrium seen in Singapore, it is likely that such trends will transform the international landscape as well.