Managing Creativity and Arts in SEA
Managing Creativity and Arts in SEA
Managing Creativity and Arts in SEA
in South-East Asia
29 Case Studies
from the Region
Interviews
9 Country Briefs
1
Published in 2021 by the
United Nations Educational, Scientific and Cultural Organization
7, place de Fontenoy, 75352 Paris 07 SP, France
© UNESCO 2021
ISBN 978-92-3-100443-8
This publication is available in Open Access under the Attribution-ShareAlike 3.0 IGO
(CC-BY-SA 3.0 IGO) license (http://creativecommons.org/licenses/by-sa/3.0/igo/). By
using the content of this publication, the users accept to be bound by the terms of
use of the UNESCO Open Access Repository (http://www.unesco.org/open-access/
terms-use-ccbysa-en).
The ideas and opinions expressed in this publication are those of the author; they
are not necessarily those of UNESCO and do not commit the Organization.
Cover illustrations: Sari Sasaki, Aung Kyaw Tun/Inwa School of Performing Arts,
Myanmar Deitta.
Graphic designer: Sari Sasaki
Typeset: Noto Sans
2
Foreword
4
When we began the study in 2019, we did not foresee that the world
would experience a major shock in 2020. The COVID-19 pandemic has
had a severe impact on the creative sector, and the researchers returned
to the participating organizations to learn about that impact. Therefore,
while the publication focuses largely on the ongoing operational
environments of the organizations, additional interviews demonstrate
that the challenges that the creative sector faced before the pandemic
intensified as a result of this crisis. The responses to the interviews also
show that support to the sector is needed now more than ever to revive
it in a timely manner.
Shigeru Aoyagi
Director
UNESCO Asia and Pacific Regional Bureau for Education
5
Acknowledgements
This publication, Backstage: Managing Creativity and the Arts in South-
East Asia, is a collective effort and benefited from the support of many
individuals and institutions during the eighteen months of its making.
We are also grateful to those who conducted the study. It was led by
Sunitha Janamohanan of the LASALLE College of the Arts in Singapore,
who worked with two colleagues: Audrey Wong Wai Yen and Natasha
Lau. The LASALLE team designed the study framework, based on which
national researchers conducted the survey and in-depth interviews in
their respective countries, in order to overcome the language barrier.
The LASALLE team then carried out a policy review and synthesized
a country analysis to generate a regional overview. We acknowledge
the contributions of the national researchers (in alphabetical order):
Kai Brennert for the studies in Cambodia and Myanmar; Kamonrat
Chayamarit in Thailand; Jefferson Chua in the Philippines; Chanmaly
Panyaphone in Lao PDR; Sunitha Janamohanan in Malaysia and
Singapore; Cecil Mariani in Indonesia; and Tran Thuy in Viet Nam.
6
Drawing on the information collected by the researchers, Sunitha
Janamohanan authored the sections of Background, Country Briefs and
Recommendations. Sali Sasaki prepared the organizations’ summaries
based on the case studies provided by the national researchers,
and also conducted and edited additional interviews, prepared the
infographic and designed the publication layout. She is also responsible
for making the videos featuring the voices of the organizations.
From the UNESCO office in Bangkok, the process was coordinated by
Duong Bich Hanh, with support from Kamonrat Chayamarit. Passachol
Kawdee, Korapat Praputum and Waraporn Onnom facilitated the
collection of additional interviews and video clips and the translation
process. We are also grateful for the support from our colleagues in
the UNESCO offices in Ha Noi (Pham Thi Thanh Huong), Jakarta (Moe
Chiba and Yati Sugianto) and Phnom Penh (Makara Hong and Masanori
Nagaoka).
7
Table of contents
8
Background 11
Case Studies
Education 24
Advocacy & Human Rights 36
Creative Experiments 46
Heritage & Archives 58
Promotion & Communication 66
Entrepreneurship 80
Country Briefs
Cambodia 90
Indonesia 94
Lao PDR 98
Malaysia 102
Myanmar 106
The Philippines 110
Singapore 114
Thailand 118
Viet Nam 122
Recommendations 126
Conclusions 131
9
10
Background organizations in South-East
Asia currently face at the policy
and operational levels, along
with factors that contribute
to their success, and provides
The Cultural and Creative recommendations towards
Industries (CCI) sector is seen strengthening the creative
as a driving force for economic sector in South-East Asia. This
growth in many countries in is supplemented by country
South-East Asia (SEA), but the briefs and profiles of individual
development of this sector CCI organizations that give
faces challenges in terms of greater detail about the specific
coherent financial strategies situations in each of the
and local market conditions. surveyed countries.
Recognizing these challenges
and the lack of consistent data The study was led by a team
on government initiatives and of lecturers at the LASALLE
policy impacts in SEA, as well College of the Arts (Singapore)
as the under-researched nature who worked in collaboration
of the financing approaches with independent national
adopted in various countries, researchers from countries
the UNESCO office in Bangkok, across the SEA region. Data
under the framework of the was obtained from 322 1
UNESCO 2005 Convention on organizations via electronically-
the Protection and Promotion administered surveys and
of the Diversity of Cultural twenty-nine case studies were
Expressions, commissioned a compiled from data collected in
study to review and analyse nine South-East Asian countries
the financial context of the CCI (Cambodia, Indonesia, Lao
sector in SEA, with a focus on PDR, Malaysia, Myanmar,
the sustainability of civil society the Philippines, Singapore,
CCI organizations. Thailand and Viet Nam).
These offer insights into the
This publication presents realities of CCI organizations
the findings of that study. operating in this region.
In particular, it presents
the challenges that CCI Number adjusted after eliminating duplicates and
1
11
The study targeted small and About a third of the
medium-sized organizations, organizations surveyed had
including artist collectives and been in operation for fewer
informal groups. The surveyed than three years. Of those in
organizations included operation for more than three
private companies (26.1 per years, 37 per cent reported a
cent), informal groups (16.8 deficit three years running. Over
per cent), collectives (14.3 one quarter (28 per cent) of the
per cent), associations (11.5 companies reported a surplus
per cent), foundations (7.8 in three out of three years, 15
per cent), public companies per cent reported a surplus in
(6.8 per cent) and others two out of three years and 20
(e.g. social enterprises, joint per cent reported a surplus in
stock companies, etc.). These only one out of three years.
organizations operate across These figures indicate a degree
various domains, including of instability in terms of the
performing arts (19.3 per cent), organizations’ sustainability,
visual arts (19.3 per cent), film with a large percentage of
and animation (15.8 per cent), organizations operating at a loss
literature/publishing (14.9 per in at least one of three years.
cent) and design (5.9 per cent).
The largest proportion (22 The study found that,
per cent) of the organizations overall, the factors that
identified themselves as inhibit the growth and long-
multidisciplinary. The study term sustainability of CCI
did not include individual organizations in South-
artists or cultural workers, East Asia include: a lack of
or government-owned or firm policy direction, lack
operated entities. While the CCI of recognition or limited
organizations that participated perceptions of the value of
in the study are not statistically culture in society, a disconnect
representative of the CCI between the government and
organizations of the region, they civil society, and a fragmented
demonstrate the great diversity understanding of the CCI sector
within the region’s creative and its markets. Furthermore,
sector. national definitions of cultural
values sometimes limit freedom
12
of expression and movement,
contravening key principles
of the 2005 Convention on
the Protection and Promotion
of the Diversity of Cultural
Expressions, including the
‘Principle of respect for human
rights and fundamental
freedoms’.
13
The policy context At the conceptual level, in
South-East Asia
development is shaped by
a notion of ‘culture’ that
defines national identity and
The study revealed a policy unification. Thus, culture
landscape in which most is seen to have a national
governments, regions and ideological role while serving an
cities favour developing CCI as economic function to generate
a means of supporting national income, create jobs and uplift
economic development. communities. This objective
Due to variations between may be embedded within CCI
the countries in terms of development policies, as seen
their economic conditions, in countries like Singapore
histories, political governance, and Thailand, or even form the
cultural policy planning and backbone of national cultural
implementation mechanisms, policies, as seen in Malaysia,
the sector has not developed however, it is seldom made
evenly across the region. While clear exactly how culture
there is evidence of dynamic and creativity achieve both
activities in the CCI sector functions and how this aligns
in most countries, the study with a market orientation.
findings indicate that there
are areas for improvement At a strategic level, some
in planning of policy and its countries have overarching
implementation, and the plans that incorporate the
findings highlight a need to CCI sector. For example, the
develop the human resource Philippines’ Development Plan
capacity of government 2017–2022 incorporates the
agencies tasked with cultural and creative economy
developing the CCI sector, and recognizes creativity as
particularly in less economically a ‘tool’ for cohesion. Other
advanced countries. countries have developed
sector-specific development
14
strategies. For example, Viet under various ministries/
Nam has a National Strategy entities, but coordination
for the Development of Cultural between them is often lacking.
Industries. In Malaysia and Crafts for example, are often
Thailand, creative economy seen as being relevant to art
development strategies have and design and also to tourism,
been aligned with digital so are covered by more than
content and media. However, one agency in some countries.
while strategies exist in many
countries of the region, concrete In some cases, the creative
action plans are absent in economy, being a relatively new
most cases, with the result domain for policy, has led to
that strategies are not always the formation of new agencies,
implemented. which often report directly
to the president’s or prime
At a policy level, Singapore, minister’s office. For example,
Indonesia and, to a lesser Thailand and Indonesia have
extent, Thailand, have the set up specific government
most clearly defined policies, agencies to develop strategies
linking education, trade, and implement plans for the CCI
development and strategies sector: the Creative Economy
executed by distinct agencies. Agency and Bekraf, respectively.
Elsewhere, some sector-specific Other countries, such as Viet
policies exist, such as policies Nam, have begun to establish
for strengthening intellectual such entities too. However, this
property protection in Myanmar raises questions concerning
and tourism policies in Lao PDR support that is too closely tied
and Malaysia. Cambodia has to the government agenda of
had a national cultural policy the day and the vulnerability
since 2014. of such agencies to changing
regimes and priorities.
Being cross-sectoral by nature,
the responsibilities for cultural
and creative industries fall
15
The operational recognized by the system.
context of the
CCI sector in
With the exception of Singapore,
which has a clear framework
South-East Asia of support for cultural non-
profits, in South-East Asia
Legal status of the CCI sector the context is such that CCI
organizations are often not
The business model that registered as non-profits even
an organization follows has if they are not profit-oriented.
direct implications in terms This is attributed to obstacles
of incentives and financing to incorporation or a lack of
opportunities (e.g. tax relief awareness of the benefits, if
and the ability to apply for any, of having a non-profit
government or international status in most countries of the
grants), but many of the region. It can also be linked to
organizations surveyed in this the general status of civil society
study operate in a grey area. organizations in SEA, which
Some are incorporated as is in need of strengthening.
private for-profit companies Furthermore, due to the hybrid
while essentially earning little and evolving nature of the
income and functioning as non- work of CCI organizations,
profits; others try to balance existing corporate registration
entrepreneurship with a social frameworks do not fully
mission. accommodate the diversity of
needs.
Around 30 per cent of the
surveyed organizations Registration processes
identified as non-formal groups
or collectives. Thus, artistic Excessively bureaucratic
and creative collectives are a government processes within
significant feature of the CCI the corporate regulation/
landscape in SEA, but in most governance frameworks for the
cases they are not officially sector are key obstacles to the
16
operations and sustainability of market awareness tends to be
CCI organizations. Registration low. When organizations were
processes can be complicated asked whether they do business
and protracted and the need planning, nearly a quarter of
to obtain permissions and the organizations (23 per cent)
permits in most countries stated they had no business
adds to the administration plan, professing to ’live from
burden of CCI organizations. day to day’, and 7 per cent
Complicating the situation reported not knowing how to
further is the prevalence of do business planning. While
opaque procedures, kickback almost half of the respondents
payments, patronage reported having a one to three
and favouritism in official year plan, only about 20 per
bureaus, which negatively cent had a three to five year
impact organizational plan and/or a one to ten year
operations, accountability and plan, and it is not known how
transparency. effectively these plans are
implemented.
The operations and
sustainability of CCI Funding
organizations are also affected
by a lack of understanding Government funding is
by government officials of inconsistent across the region.
the exact contributions and Some governments (e.g.
nature of CCI work, which Singapore) allocate significant
sometimes results in additional funds towards CCI sector
complications in the registration development, while others
process. (e.g. Cambodia, Lao PDR and
Myanmar) offer little to no
Business planning state support for the CCI sector.
Even where grants and funds
Many organizations display a are available, respondents
deficiency in strategic business and researchers reported that
planning skills, and their access to these – including
17
access to information about Another commonly-cited
them – was often difficult. challenge is the difficulty
of attracting and retaining
International funding is a major skilled personnel as salaries
form of support to the sector in the CCI sector tend
in some countries, particularly not to be competitive. As
in the small and medium-sized the skills required in the
economy countries. However, creative industries are easily
such funding is not always transferable, staff often move
accessible due to specific out of the sector into related
registration requirements. areas such as hospitality and
tourism, which offer more
While private patronage is stable and higher incomes.
a key enabler for many CCI
organizations in the region, Many organizations reported
corporate and individual not having enough staff trained
philanthropic support for in business and administration
culture is still underdeveloped skills, corroborating the findings
in all the countries surveyed. of the UNESCO Creative Economy
Report 2013, which observed
Precarity of the creative that capacity-building within
workforce the creative economy sector
was still in an experimental
Many CCI organizations rely stage in developing regions.
greatly on a part-time or
project-based labour pool, and A more intractable challenge
cultural workers often subsidize however, may be the
their organization’s activities inadequate value placed on
through either free labour or creative labour by society,
very low wages (surviving on which affects not only the
income derived from other earning potential of creative
sources). workers but the overall market.
18
Operational costs purchasing power rather than
on local consumers. Even in
Costs vary greatly from country countries like Singapore, where
to country, and operational the appetite for arts and cultural
costs, such as office/studio events has grown significantly
rental and salaries, are in recent decades, arts
impacted by rising costs companies reported challenges
of living. This factor was in attracting ticket-buyers and
especially highlighted by urban expanding their audiences.
respondents to the survey,
in cities such as Jakarta and The art market is in significant
Phnom Penh. competition with the
entertainment industry and
Throughout most of the other lifestyle attractions – a
region, investments in hard factor that is expected to be
infrastructure and provisions exacerbated with the growth of
for affordable rents are still digital content and globalization
required, alongside soft pressures on the industry. There
infrastructure investments in is also a strong rural-urban
terms of skills and training. divide.
In low-to-middle income
countries, infrastructure is In most of the surveyed
still severely underdeveloped, countries, CCI organizations
equipment rental is costly and were found to be engaging
operating expertise is low. in education, cultural
preservation, audience
Weak domestic markets outreach and sector capacity
development – services that
The responses to the survey would normally be facilitated
indicated that the domestic through government policy.
markets for cultural and These tend to be activities that
creative goods and services cannot be scaled up as business
are perceived to be weak. Most propositions and cannot be
organizations depend greatly supported by paying customers.
on expatriate and tourist
19
Factors and social organizations. In
22
EDUCATION
24
Epic Arts
Cambodia
25
Epic Arts Financing structure
27
The
Sound
Initiative Financing structure
Cambodia The Sound Initiative is a social enterprise. It
is registered as a limited liability company,
however, because Cambodia does not have a
LLC / Social enterprise (2018) social enterprise registration framework.
Established in 2018, The Sound Initiative TSI is currently mainly funded by foreign
(TSI) is a vocational training programme grants, notably from the British and United
for emerging singer-songwriters and music States embassies, USAID, PACT and the Hard
producers. TSI aims to equip young artists Rock Heals Foundation. It also receives
with the knowledge and experience necessary support from the private sector. In addition,
to establish themselves as professional TSI generates income by providing services to
musicians and embark on a music industry the music industry, including audio-recording
career in Cambodia. The company also offers services and small-scale live event and
a technical training programme for young concert production. The income generated
musicians to improve their employability in this way is used to finance the organization’s
vocational education programmes.
the music industry, coinciding with a large
demand for trained sound engineers in
Currently, the income generated is insufficient
Cambodia.
for the company to operate independently.
Because it is heavily dependent on grants,
As of September 2019, TSI had completed a TSI will eventually need to develop a stronger
pilot programme of nine months with fifteen business and revenue model in order to
musicians, and had begun a new programme sustain its activities.
for a second cohort.
A key challenge facing the organizations
is the low awareness and appreciation for
Team music products among the local audience in
Cambodia. Most people do not expect to pay
Six staff members: managing director, music for music content as it can easily be found for
director, music assistant, marketing/events free.
officer, finance officer and project officer.
In 2019, the organization spent at least
USD 550 per month on rent, which includes
withholding tax and cleaning fees.
28
Laura Baker
Chheng Heang Chive
Euan Gray
30
The Association for partnerships with various other organizations
Preservation of Art
proven to be successful in the past in terms of
artistic training and capacity building.
32
Inwa
School of
Performing Arts
Myanmar
Financing structure
Eight staff, including a general manager, a The school’s management does not foresee
headmaster, three teachers, two performers any changes in the near future and does not
and one dormitory coordinator. currently have other strategies to generate
income aside from through performances.
Strategic decisions are made by the Arts
Mandalay Foundation in the United States.
33
Centre for The organization respects diversity and employs
ethnic minorities from mountainous areas of the
Assistance of
educational backgrounds and are often trained
in-house.
After seventeen years of operations, TPD has TPD’s activities that do not generate any income
managed to build a community of 3000 alumni depend on external funding. The organization
who have produced between 700 and 800 short prioritizes its funding toward films with a social
films and documentary films on current topics, impact and seeks to develop a film community
such as gender-based violence, climate change based on a new generation of people in Viet
and LGBT issues. Nam, who understand film aesthetics and can
also become film critics.
TPD has made an effort to develop its audience
across the country. As a result, the number of While receiving strong support from the Viet
people attending screenings is growing. Public Nam Cinema Association, the TPD manages
events are organized regularly; up to five times itself independently and operates like a non-
profit organization, pouring revenues back into
per week.
the community. While it faces tough challenges,
it intends to continue working under the present
Team
business model and financial structure.
Founder: Bui Thac Chuyen (film director).
A team of eight people (full-time and part-
time staff).
34
Operating costs
TPD has its own space, provided as in-kind
support by the Viet Nam Cinema Association.
The space has three classrooms, a film library
with public access, a film studio and an office.
a high percentage VAT: 10 per cent of fees for projects and services.
toward non-for-profit
monitoring. The licensing cost for screening is
USD 70 per film.
community projects.
After seventeen
years, it has become
one of the most
successful creative
business models in
Viet Nam.
35
ADVOCACY &
HUMAN RIGHTS
36
SIRKAM, Women’s Creative Circulation
Indonesia
Myanmar Deitta
Myanmar
Pineapple Lab
The Philippines
Mayarith
Thailand
37
SIRKAM
Women’s
Creative Circulation
Indonesia
Unregistered collective (2018) Financing structure
Sirkulasi Kreasi Perempuan (SIRKAM), the SIRKAM received initial funding from a
Women’s Creative Circulation, is a hub space cultural grant called Cipta Media Ekspresi,
that serves as a forum for women in the fields which supports the engagement of women in
of art and literature. It is a community group the fields of arts and culture, and which is in
dedicated to empowering creative women turn funded by the Ford Foundation, and was
and it is a platform to showcase their voices established in collaboration with Wikimedia
and aspirations as well as to facilitate the Indonesia. The organization intends to
sustain itself after the grant expires through
development of new ideas and discourses.
a membership scheme. The organization
SIRKAM operates based on the principles of
generates some income by organizing classes
togetherness, equality and collectivism.
and craft workshops and also by selling
creative products at exhibitions and markets.
Inspired by women in the Indonesian arts and
culture and their activism, SIRKAM was founded In 2020, in response to the limitations on their
in September 2018 by Citra Hasan with a mission activities imposed by the Covid-19 pandemic,
to empower women through intellectual and SIRKAM launched a crowdfunding campaign
artistic works. The organization publishes zines, to raise money for their rental costs and to
holds exhibitions and convenes public forums. keep their organization afloat. SIRKAM is
currently not registered as a legal entity due
to lack of sufficient funds for the registration
Team process.
38
Citra Hasan
Founder
39
Myanmar
Deitta
Myanmar
Non-profit organization / Association Financing structure
(2013)
Myanmar Deitta receives project funding from
Myanmar Deitta is a Yangon-based not-for-profit partners and clients working collaboratively
organization (registered as an association) on social issues such as women’s rights
committed to developing tangible resources and issues related to the mining industry.
for documentary photography, filmmaking At present, programmes about women
in photography represent half of the
and multimedia production in Myanmar. It was
organization’s activities and funding, and
created in response to a lack of local institutions
pay for half of the organization’s overhead
and support infrastructure in these fields. The
expenses.
organization provides resources and support for
photographers and filmmakers working in the The organization also generates some
journalism, advocacy and social-documentary revenue through sales and services (e.g.
fields. photojournalism services and documentary
filmmaking services). Myanmar Deitta has
Since its inception, Myanmar Deitta has plans to grow its educational services and
facilitated more than fifty exhibitions of local become a photography school with related
and international photography as well as exhibitions and projects.
film screenings, press conferences, panel
discussions, workshops and artist talks. Given a lack of government support for the
Programmes have covered a broad range of arts and media in Myanmar, a key challenge
topics, including domestic land rights and is to secure sufficient ongoing operational
funding.
resource extraction, religious conflict, wildlife
preservation, global statelessness, LGBTQI
The organization rents a ground-floor space
rights and women’s rights.
in downtown Yangon for USD 1,000 per
month. Other expenses include electricity
In 2019, the organization moved into a larger
and salaries. Licenses and permits have to be
space, comprising a gallery, library and
requested for exhibitions but they are free.
workspace, in downtown Yangon. This space
will enable it to host exhibitions, events and
educational programmes for various entities,
including embassies, non-governmental
organizations, educational institutions and
organizations in the arts sector.
Team
One director.
Three core staff members who have multiple
roles, including administrative work, training
and project management.
40
Matt Grace
Director of Operations
42
Operating costs
Around a half of the organization’s running
costs are human resources expenses
(for nine full-time staff members), while
around a third of the costs are for project
expenses and the rental of office space.
Other costs include utilities, equipment
rental, maintenance costs, taxes, marketing,
outreach, telecommunications, licenses and
miscellaneous costs such as travel expenses.
Pineapple Lab pays around USD 1,200 per
month to rent its space, which is a relatively
competitive price point in a highly-gentrified
section of Poblacion.
Mayarith, a children’s theatre, was set-up in Income earned by Mayarith comes mainly
2015. It is the first children’s theatre in Thailand, from ticket sales (USD 65,000 per year), but
and seeks to maximize the potential of creative the organization also receives support from
practices. It is part of an organization called donors and partnerships.
Maya, which began in 1981 and evolved from
The Mayarith theatre benefits from the long
being an informal group without any funding
development history of Maya, its parent
into a travelling theatre, offering shows at
organization, which initially received funding
affordable prices.
from the Canadian government to establish a
travelling theatre that focuses on performing
The Mayarith theatre focuses on building a
arts for and with youth, teacher training and
process for self-empowerment by encouraging
instructional media development. Through its
children to think differently, express themselves,
activities, the group received more attention
take action and be confident. Every production
from the media, which led to television
encourages interaction between children appearances, public speaking opportunities
through performances, spatial arrangements and commissions for training sessions. Other
and decision-making. The group devised sources of international funding include
a strategy around the concept of theatre support from the Japan Foundation and the
for awareness-raising and community Bernard van Leer Foundation, which provided
development (children’s groups that include funding for ten years, between 1997 and 2007.
marginalized children who live along the borders
or in camps, and disabled children). Rajabhat University supported an initiative by
the organization to develop a Mobile Training
Mayarith implements three or four projects per Unit Department. This led to the development
year, with each comprising thirty-two shows of a curriculum focusing on participatory
or performances. A key goal for Mayarith in learning and associated teaching materials
the future is to create a national agenda that (e.g. shadow puppets), which in turn led to
supports children’s empowerment in Thailand the training of thousands of educators who
in line with the Convention on the Rights of the were part of the Rajabhat University network
Child. across Thailand.
Team The organization partnered with the
Thai Ministry of Education on policy
Director: Somsak Kunha. development and the Thai Health Promotion
Volunteers, including: a producer, Foundation which have supported as strategic
director/scriptwriter, production designer, partners and not financial partners.
performers, make-up artists, lighting
designer, sound engineer. In the absence of a long-term strategy, Mayarith
Students and young performers have theatre relies on voluntary contributions,
volunteered along with friends of the friends and supporting networks, as well as
organization. word of mouth. Over the years, the audience
base has grown and become more diverse.
44
The income from ticket sales covers the
rent, production costs and electricity. Staff
members are paid when there is project
funding, otherwise they work on a voluntary
basis and most of them also have other jobs.
Each of Mayarith’s projects (three or four per
year) costs between USD 25,000 and USD
40,000. In June 2020, the organization was
given a piece of land on Sukhumvit Road,
Bangkok, on which to build a theatre. Funds
are being raised to build the structure.
45
CREATIVE EXPERIMENTS
46
SAtheCollective
Singapore
Serrum Studio
Indonesia
Heritage Space
Viet Nam
47
SAtheCollective Financing structure
48
Andy Chia
Artistic Director
Operating costs
In 2018, the organization successfully
achieved the status of a registered charity and
became fully tax-exempt. Their rent is SGD
1,053 per month. This, together with utilities,
staff salaries and other expenses, brings their
monthly expenses to between SGD 14,000 and Could you provide an update on the current
SDG 15,000 per month (between USD 10,000
business situation (including issues related to
and USD 11,000).
COVID-19)?
49
Phare Financing structure
Performing
Social Enterprise
Cambodia does not have the legal framework
required to register as a social enterprise,
Cambodia
so the PPSE is registered as a company.
It is owned by the Phare Ponleu Selpak
Association, and is funded by a loan from
the social impact investor Grameen Credit
LLC / Social enterprise (2012) Agricole Microfinance Foundation and by
private investors. The PPSE has a share in
Based in Siem Reap, the Phare Performing the Phare Cambodia Landholding company
Social Enterprise (PPSE) creates employment (49 per cent is owned by the PPSE and 51 per
opportunities for artists in Cambodia, mostly cent is owned by private individuals who are
friends of the PPSE).
in the performing arts (theatre, circus) sector
and to a smaller extent in the graphic design
It generates income through ticket sales
and animation sector. One of PPSE’s main
(75 per cent of income), mainly for a tourist
activities is to offer career development grants
audience, and from retail sales from the Phare
and creation grants for artists to develop new boutique (24 per cent of income). It also gives
works. The organization’s main artistic activities performances and offers graphic design and
are daily circus performances in Siem Reap. Its animation services to generate additional
artists have also toured overseas. income.
50
Huot Dara
Chief Executive
51
Five
Arts Financing structure
Malaysia
company (Sendirian Berhad), but is operated
as a collective.
Team
Fourteen members.
It is a flat structure, without hierarchy, but
has two executive directors.
Full-time staff members receive a monthly
salary and project collaborators are paid on a
project basis.
52
Operating costs
Operational costs are between USD 28,000
and USD 36,000. This amount excludes project
costs. Human resources, utilities and rent
are the largest expenses. The government
imposes licenses and fees, including a
USD 2,400 deposit for any event with local
performers and a USD 7,300 deposit for a
show with international artists.
53
Prakerti Financing structure
Intelligence
the founder of about 60 million Indonesian
rupiahs (approximately USD 4,300) and does
Indonesia
not receive any donations from external
bodies.
Operating costs
Prakerti’s annual operating costs are
approximately IDR 70 million (excluding
worker’s salaries, which vary depending on
the volume of activities).
54
Serrum a publications manager and an overseas
Studio
coordination manager.
Two accountants, one office clerk and a driver.
Viet Nam
and one administrator.
Team 2: Part-time staff, including four
programme development officers
(music performances, film, art talks
Social enterprise (2014) and art practices), one accountant, one
communication officer, one fundraiser and
Heritage Space was founded at the end of 2014
two technicians.
by Nguyen Thi Hong Minh, with consultation
Team 3: Volunteers.
from artist Tran Trong Vu. The organization’s
goal is to become a high-quality art hub for
creative practitioners and the general public,
Financing structure
with a mission to support and promote an
interdisciplinary approach to contemporary Heritage Space has been successful in gaining
art in Viet Nam, as well as to facilitate funding from international organizations,
stronger connections between Viet Nam and including the British Council, Goethe
contemporary art across South-East Asia and Institute, the Embassy of Denmark, the
the world. Japan Foundation and the Korea Foundation.
This support has enabled the organization
Its major activities include the production to implement large-scale projects, such as
of art exhibitions and the facilitation of its signature Month of Art Practice, which
multidisciplinary activities for creative facilitates art residencies in Hanoi.
practitioners from various fields, including
While most of the organization’s activities
music, theatre, architecture, cinematography,
are free of charge, Heritage Space does
photography, performance art and experimental
earn some income from ticket sales at small
art.
events such as musical performances and
training workshops. Three events of this type
Most activities are free of charge to the public. are organized each month, on average. This
This is part of the organization’s vision to income covers performers’ fees, utility costs,
support contemporary art in Viet Nam through service costs and human resources.
audience development.
56
Nguyen Anh Tuan
Artistic Director
58
Film Indonesia
Indonesia
59
Film Indonesia
Indonesia
Unregistered entity (2007) Financing structure
film indonesia (FI) works to compile film industry The main challenge for FI is to find long-term
data and to maintain the Indonesian film funding to properly compensate its members
industry database. The initiative emphasizes for their efforts and ensure sustainability. FI
the importance of maintaining a functional is hesitant to get involved in a government
support scheme because of the unstable
database and archives of Indonesian film.
nature of public funding. The organization
The organization began in 2007 through the
has found various ways to generate income.
network of J.B. Kristanto, a senior film journalist
After collecting data weekly for five years,
who pioneered the idea of an Indonesian film
the organization members realized that the
catalogue. data could be monetized. The organization
also generates income by providing data
Over time, the organization gained the trust of presentations to industry stakeholders. The
industry players, who now entrust their data to forum is supported by grants from Bekraf (the
FI. The group collects data on a weekly basis, national agency for creative economy).
door to door, from commercial cinemas and
production houses. FI also consolidates data As of 2020, FI was not registered as a legal
from existing film encyclopedia created by S. M. entity but was considering registration as
Ardan, a filmmaker and archivist. a civil association in order to access more
funding opportunities.
FI also produces editorial data analysis and
proposes film data related programmes to
Operating costs
the government. It also runs an ongoing film
industry forum. FI presents digital data and FI’s largest expenses are related to
information about Indonesian films through maintaining its database. FI pays a third-
their website FilmIndonesia.or.id. The database party cost for a domain and web server
is available both in Indonesian and English. infrastructure. Running the website costs
between IDR 18 million and IDR 20 million
per year. Another major expense is labour.
Team FI does not pay monthly salaries to its staff
and compensates them by evenly sharing
One founder and four partners including an any available income. This arrangement is
IT manager, programme manager, editorial
possible because its workers have other jobs
team and a data and administration officer.
Volunteers. to support themselves.
60
Khao Niew Team
Company
to finance and administration.
Volunteers.
Lao PDR
Financing structure
61
Siong Leng
Musical A family organization, in operation for three
Association
generations, Siong Leng operates out of a
building it owns in the Chinatown heritage
Singapore
district of Singapore. In 1987, their founder
and chairperson, the late Teng Mah Seng, was
awarded the Cultural Medallion, Singapore’s
highest honour for an arts and culture
Society / Charity (1941) practitioner. The current chairperson is the
son of the founder. The general manager and
The Siong Leng Musical Association was
the head of programmes are the sons of the
founded in 1941 as a society. One of the oldest
executive director.
arts organizations in Singapore, it practices
Nanyin, the ‘music of the south’, a UNESCO-
recognized ancient Chinese art form from Team
Fujian, China. Siong Leng’s mission is to
preserve, promote, protect and develop the art Eight full-time staff including: an executive
form in Singapore and to engage with audiences director and arts manager, a general manager
through performances, education and outreach and an artistic director.
programmes. Three cross-functional teams: administrative,
artistic and projects.
Siong Leng organizes at least one major
production a year, sometimes two. Described
Financing structure
as a ‘multisensory banquet experience’, this
production takes place between August and Siong Leng has been a recipient of the National
October to celebrate the birthday of Lang Jun, Arts Councils (NAC) Major grant since 2016 and
a god of music. An event with high production entered its latest three-year cycle in 2019. The
values, until 2019 tickets were usually priced at association has a tiered membership and donor
around SGD 100 (approximately USD 75). The programme. The scheme seeks to nurture
organization subsequently embarked on a new donor relationships and grow a wider network
venture with the prices of the tickets ranging of friends for the future. The association also
from SGD 300 to SGD 10,000. This significant leases units in its heritage building to generate
increase in ticket prices was less to do with additional income (SGD 17,000 per month). This
increasing the organization’s income and income is used to cover operating costs.
more to do with a repositioning of its brand. In
addition to its annual major production, Siong
Operating costs
Leng is commissioned to organize performances
around four to five times a year. Siong Leng owns its own building and
therefore does not have any rental expenses.
The organization does not charge for the With its non-profit organization and charity
lessons it provides to individual students. The status, it also benefits from tax exemption. All
free lessons are part of its mission to cultivate a team members are paid but their salaries are
new generation of Nanyin practitioners. It also lower than average because of the non-profit
provides workshops and classes for schools free status and limited resources.
of charge.
62
Lim Ming Yi
Education & Outreach Manager / Artist
63
Penang
House of Music
Malaysia
Project under a private company Team
(2016)
One director.
The Penang House of Music (PHM) evolved Three full-time staff, three part-time staff and
from a project launched by Paul Augustin and interns.
James Lochhead, from their personal archives
of popular music. The project that the two
Financing structure
men implemented sought to document the
diverse culture and music traditions of Penang’s The initial funding was MYR 3 million
local community. This led to exhibitions at the (approximately USD 721,500) for three years.
Penang State Museum in 2010 and 2013, and the This included MYR 2 million for the set-up
publication of a well-received book, Just for the costs and the first year of operations, and MYR
Love of It: Popular Music in Penang, 1930s-1960s. 1 million for its operations over the next two
years. As of 2020, PHM was being funded by
Discussions with the Chief Minister of Penang Penang Tourism, Arts, Culture and Heritage
and PBAPP (a state-owned company) (PETACH), which oversees the Penang State
subsequently led to the founding of the Penang Museum. Revenue generated through PHM’s
House of Music in 2016. The PHM has three parts: ticket and retail sales is insufficient to cover
the gallery, which displays the state’s iconic past costs.
musicians and musical history; a 100-seater
black box performance space to support Operating costs
upcoming artists; and a resource centre, which
features a ‘treasure trove’ of music and serves The PHM’s budget is about a quarter of
as a focal point for musicians, scholars, students a million USD per year. This covers rent,
and others interested in Penang’s history. overheads, salaries, insurance, maintenance,
archive equipment and more. The rent is
The current space, with an area of 6,800 square about MYR 17,000 per month (USD 4,000),
feet, is located on the fourth floor of a high- a considerable expense. Despite the large
amount of funding and support, the
rise office tower and is costly. Rent takes up a
organization struggles to cover its costs.
large proportion of the organization’s budget
and the location of the PHM poses challenges
in attracting visitors, so relocation is being
considered.
65
PROMOTION &
COMMUNICATION
MATCA
Viet Nam
Arts Equator
Singapore
67
Titikmerah Financing structure
Malaysia
collective, Titikmerah strongly relies on a
network of friends. Its main source of income
is from the exhibitions it holds. These are solo
and group shows, mainly by members of the
Unregistered collective (2014) collective, but the organization also holds
open calls and invites other artists to work
Founded in 2014, Titikmerah is a collective of with it.
visual artists based in Kuala Lumpur. Titikmerah
is also the name given to their art space, which The gallery is considered ‘non-commercial’ in
functions as both a gallery and studio. the sense that while it sells works, it does not
seek to make a profit from the sales, merely
Titikmerah translates as ‘red dot’ in English, charging enough to cover their running
and refers to the red dots artists want to see at costs. Unlike standard galleries, which have
the bottom of their sold canvases. The red dot a division of 50-50 or 60-40 between the
is also a reference to an emergency button or a gallery and the artist, Titikmerah normally
recording button, and to something important takes between 10 per cent and 15 per cent,
or indicative of danger. and only goes as high as between 20 per cent
and 30 per cent when the organization works
The founders of the collective are all self-taught with an external curator. If it is falling short on
artists who consider themselves ‘outsider funds, it might raise its dividend to ensure it
artists’, and who have experienced difficulty in has enough funding to keep things running.
the past in securing gallery representation. The In the event that the organization is unable to
collective and their gallery are characterized cover its monthly expenses, members of the
by the spirit of DIY (do-it-yourself) culture, collective who have financial means donate
reflected in the ethos of their collective and in their personal funds.
the aesthetics of their practice. As a collective, it
is independent, experimental, entrepreneurial, The collective is facing an ‘adolescent’ phase,
risk-taking and also reflexive in its activities. which requires that the organization is
consolidated and develops a clearer business
Through their projects, the members act as plan in order to attract new investors without
mentors and enablers for their peers and losing its initial model based on friendships,
for younger artists. Balancing business and flexibility and mutual support.
artistic integrity with an eye on the surrounding
context, the founders present a lucid worldview
that places community and social relationships Operating costs
at the heart of what they do as artists, with a
The biggest expense for the collective is rent.
willingness to try new things.
Titikmerah recently relocated to a suburb of
Kuala Lumpur where it benefits from lower
Team rental costs. The collective does not have full-
time professional staff and pays interns at hourly
Eleven members, including three founding rates.
members.
68
“We look at what
can we contribute
to each other rather
than what can we
take. Better to be
friends first. It always
starts with friendship.
Relationships are
important to us.”
69
Anonymous
Publishing
House
Myanmar
Private entity (2004) Financing structure
Registered in 2004, this publishing house The publishing house was established by
releases books and a bi-monthly magazine a respected senior publicist and is run by
that covers culture and literature (i.e. poems, two people, one of whom holds financial
book reviews) and also touches on issues of responsibility and was originally a writer.
development, sustainability, inclusiveness Both directors inject their own money into
and human rights. The magazine caters to a the company to support the production of the
niche audience that local mainstream media magazine.
publications do not reach. While the magazine
While the magazine is not doing well
represents the heart of the company, books
financially due to its small circulation, it is
generate the actual income stream.
considered to be one of the leading magazines
in literature and culture in the country. It
Team is published at a loss of around USD 1,000
per issue, which is covered by the financial
Two directors. contributions from the two directors, who
Three full-time staff including a designer, a have other jobs, such as teaching.
proof-reader and an administrative assistant.
The publishing house does not have a business
Three part-time editors.
plan and is increasingly threatened by the
growth of digital content, which is more easily
accessible. As long as the directors are able
house is increasingly
they intend to continue in the current way.
They are aware that it is not a sustainable
threatened by the
practice and have thought about applying for
grants or operating in a more entrepreneurial
growth of digital
way.
Jazz Festival Since the beginning, the festival has been run
Malaysia
like a project and almost completely relies on
volunteer labour. Neither Paul nor Chin earn
a fixed salary from their events work. Thus,
their company operates in some ways like a
Private entity (2004) social enterprise; it reinvests money back into
the company, only retaining what the staff
The Penang Island Jazz Festival (PIJF) was need to survive.
launched in 2004. The festival is owned and
The festival receives funding from private
operated by the events company the Capricorn
sponsors and investors, such as Mercedes
Connection, which belongs to festival co-
Benz, which has sponsored the festival in the
founder and director, Paul Augustin. The festival
past, and the PBAPP, which has invested in
has a hybrid nature, positioned between
the festival (getting a return of 30 per cent on
a commercial business and a non-profit any profits made). Additionally, the festival
organization. It is one of Malaysia’s longest- has received funding from the Penang state
running music festivals and is the longest- government, the federal government and the
running jazz festival in the country. Malaysia Convention and Exhibition Bureau.
Team
71
Matca seeks to
connect and
strengthen the
ties between
photography and
contemporary
expressions,
especially by
presenting
photography as
a distinctive art
form that goes
beyond journalistic
and commercial
approaches.
72
Matca
Viet Nam
Unregistered collective (2016) Financing structure
Matca is a bilingual website that serves as a In 2018, the group obtained funding from
platform for self-initiated photography projects several donors, including a one-year grant
and ideas, which often struggle to find markets from the Cultural Development and Exchange
and audiences. The group primarily seeks to Fund (CDEF) of the Embassy of Denmark in
develop new ties between photography and local Viet Nam.
audiences. It also works to develop educational
The new physical space offers the group new
activities and experimental projects.
opportunities to generate revenue through
renting out exhibition spaces. Rates vary
It was founded in 2016 by photojournalist Linh
from between USD 500 and USD 1000 per
Pham, in collaboration with two photographer project. Matca also jointly runs a caféé and
friends, Mai Nguyen Anh and Dat Vu. In 2017, the a studio. The sale of photographic works
team was joined by Ha Dao, who was initially the also offers a source of regular income. The
site’s editor and later became the programme largest source of revenue is from providing
coordinator. commercial photo and video services. Matca
has begun experimenting with the production
The website gradually became a leading of photography books and merchandise.
publication on photography, with a focus on
practices and histories, often from a critical Matca aims to become an independent gallery.
perspective. Over the years, it has gained about The team enjoys operating on a small scale
20,000 followers on its social media sites. within a niche market, however, and without
the pressure of growing big. In focusing on
Building on this success, Matca expanded its
small projects and finding the suitable grants
activities to portfolio review, photo editing, art
to finance their activities, the organization is
tours, residencies and exhibition, among other
slowly gaining momentum.
things, and in April 2019, the group launched its
own physical space in Hanoi.
Operating costs
Matca works on a project basis. In its first three
years of operations, it built strong partnerships Human resources and utilities cost around
with regional platforms such as World Press USD 700 per month. The founder’s property is
used as the workspace and he also oversees
Photo, Angkor Photo Festival and OBJECTIVES -
financial management of Matca.
Centre for Photography and Film.
Team
75
Bangkok Goethe Institute, Institut Français and the
International
Japan Foundation.
Performing Arts
BIPAM has built upon strong partnerships,
which provide in-kind support. Partners
Meeting (BIPAM)
include the International Association of
Theatre Critics (IATC), the Ministerium für
Thailand
Kultur Wissenschaft des Landes Nordrhein-
Westfalen, Kulturamt Frankfurt am Main,
ARTWAVE Taiwan, Festival/Tokyo, the Seang
Arun Art and Culture Center, Media Vision,
Unregistered collective (2004) the Thai Theatre Foundation, the Bangkok
Theatre Festival (BTF), the Unfolding Kafka
The Bangkok International Performing Arts Festival and SATARANA.
Meeting (BIPAM) was established in 2004 with
the objective of becoming South-East Asia’s BIPAM and B-Floor (a theatre group)
performing arts ‘launch pad’, showcasing the earn income through tickets sales and
region’s creative talents, and a space for the commissions/royalty fees for performances.
This income is used to cover operational
exchange of knowledge and experience so as to
expenses. The directors and managers only
strengthen the performing arts community in
receive compensation after all costs have
the region.
been covered. Royalty fees are charged by
the number of shows and calculated by the
Every year, BIPAM organizes a performing arts numbers of performers. There is no fixed or
festival, an event that includes panel discussions standard rate. Rates can be negotiated, but in
and a forum. Each event seeks to continue most case the artists are requested to make
crafting a more complete and comprehensive concessions.
perspective of the theatre scene in the region.
Improvisation has been part of the management Despite financial struggles, BIPAM has been
approach. able to sustain itself for a long period of time
because of the dedication and passion of its
members, who support themselves through
Team other full-time jobs. BIPAM has no financial
strategy or plans regarding how to ensure its
One artistic director. long-term financial sustainability.
Four artistic committee members, including
two writer-translators / language and
writing teachers, one co-artistic director and Operating costs
founder of B-floor theatre, and one project
coordinator. Given that affordable rental spaces are
scarce, BIPAM operates out of the house of a
supporter. Members of the collective mostly
Financing structure work voluntarily without a salary and rely on
other jobs to sustain themselves.
BIPAM relies on project grants, including from
Thai government agencies, e.g. the Thailand
Convention and Exhibition Bureau (TCEB),
the Bangkok Metropolitan Administration
(BMA) and the Alliance of Performing Arts in
Higher Education of Thailand (PATH), and
from foreign cultural agencies such as the
76
As the number of
theatres remains
limited in Thailand,
BIPAM would like
to see a better
integration of
performing arts in
everyday life and
make shows more
accessible in both
urban and rural
areas.
77
Vientianale
International Financing structure
Lao PDR
support and private sponsorship, notably
by large beverage companies. The national
government does not offer any support for
this type of cultural organization. The festival
Unregistered entity (2009) events are free and therefore do not generate
any income. While this is a financial burden,
The Vientianale International Film Festival is providing free entry is essential to keeping
one of only two film festivals in Lao PDR. The the festival accessible to all. Income is earned
event is organized each year in Vientiane and through merchandise that is sold during the
presents Lao and international films to the local events. The festival is currently reviewing its
audience. The festival also conducts capacity- financial situation and operational strategy to
building workshops for young Lao filmmakers seek alternative sources of funding.
and organizes mobile film screenings called
‘Vientianale on the Road’ for audiences in The initiative is not registered as a legal entity.
remote areas so as to disseminate the work of However, it has signed a Memorandum of
young Lao filmmakers. In addition, it runs basic Understanding with the Ministry of Information,
filmmaking workshops for rural youth. Culture and Tourism, and is recognized as a
‘project’ with an annual renewal.
The Vientianale provides an opportunity
to share the impressions and insights of
Lao filmmakers on their society from their Operating costs
perspective. Its activities enable the organization
The festival does not have an office space
to promote its distinctive approach to film
and the staff operate via the internet, social
and to foster the development of the Lao film
media, phone calls and meetings (whenever
industry with a distinctive voice.
necessary). It relies heavily on volunteering to
minimize costs. As an informal group mainly
Team composed of volunteers, it is not required to
pay taxes. Equipment and venue rental costs are
Two directors: Athixay Boundaoheaung and high.
Helene Ouvrard.
A large number of volunteers are involved in The festival must go through a censorship review
the festival production phases. process every year (a government requirement)
and must bear all the costs related to this
process. The process has become more flexible
over the years and a wider range of films are
now approved. Rural areas are logistically more
challenging and the requirements for each
location affect production costs. They include
accommodation, DSA and fees, which can vary
from one province to another.
78
“We put all our effort
in organizing the
festival and mobile
film screening with
our limited budget.
We hope that one
day the government
will take action
and financially
support cultural
organizations,
especially regarding
venue and
equipment rental
costs.”
79
ENTREPRENEURSHIP
80
Shma & Shma SoEN
Thailand
81
Shma & Financing structure
Thailand
founders’ personal assets and is registered
as a business company with tax obligation.
The landscape architecture company is a
professional company with specific legal
Private company / Social enterprise regulations in Thailand.
(2007)
Income is generated through professional
Shma is one of the leading landscape
commissions and projects. The clients are
architecture companies in Thailand. Founded
70% from the private sector and 30% from
by Namchai Saensupha, Prapan Napawongdee
the government sector. Stable revenue is
and Yosapon Boonsom, its mission is to build
generated from commercial projects with
earth-friendly architecture through a balanced
the private sector. In parallel, Shma SoEN
and sustainable approach, guided by three
works with governmental bodies to carry out
themes: ecological, social and conservation.
non-profit projects to benefit society more
The company only works on projects that are
particularly by improving public spaces.
related to environmental and social issues.
Operating costs
La Lanta Fine Art is an art gallery with a focus La Lanta Fine Art was registered as a company
on contemporary art in Asia. The gallery seeks in 2003 and was established with funding from
to give more exposure to Thai and South-East its founder, who specializes in the business of
Asian contemporary art by participating in importing licensed art prints from European
international events in Asia, Europe and the and United States art publishers.
United States, and simultaneously introducing
As a commercial gallery, La Lanta Fine Art
international artworks in Thailand. Its approach
has never received public funding. Its main
is that of a commercial art gallery, putting
revenue comes from sales at art fairs. As
business activities at the forefront and
of 2020, the revenue generated by its sales
importing and exporting artworks. It currently covered the operational costs of the gallery
represents 20 artists. space in Bangkok but was insufficient to
expand the business further.
La Lanta Fine Art’s exhibition space, established
in 2006, was one of the first contemporary art La Lanta Fine Art does not have a long-term
galleries in Bangkok. After its inception, the business strategy and the activities are
gallery investigated the art market situation carried out on a year-to-year basis. It remains,
in Thailand and realized that Thai artists had however, a rare example of an art gallery that
very limited exposure. In response, the gallery manages to generate a profit and stay afloat
quickly refocused its strategy, working to without depending on external grants or
raise the visibility of Thai contemporary art at financial support.
international fairs and to expand the demand
for such art. The gallery participates in nine art Operating costs
fairs per year, including prestigious art fairs for
art collectors as well as the more affordable art The cost of attending art fairs is between
fairs. Over the years, the gallery has gained a USD 100,000 and 150,000 annually. A
presence in the art scenes of Basel, New York, large proportion of this is spent on the
London, Miami, Hong Kong, Singapore, Jakarta, transportation of artworks and associated
Malaysia, and the Philippines. taxes.
84
Sukontip Prahanpap
Founder
85
Business Planning
Annual
Operating Budget
23% 48%
go day by day
without a plan
have a
1 - 3 year plan
42%
have less than
USD 10K per year
Surplus / Deficit
18%
have more than
USD 100K per year
28% 37%
had a deficit had a surplus
in the last in the last
3 years 3 years
86
CCI numbers in the region
*collected through surveys involving 321 CCI organizations in South-East Asia
Creative Sectors
15% 22%
4% others
multidisciplinary
music
6%
10% film &
animation
design
3%
literature
16%
19%
craft
5%
87
Facts & Numbers
* based on the 29 case studies featured in this publication
46%
80%
of organizations are
private entities
2%
are not generate their
registered own income
through sales
and/or services
53%
operate as a social
20%
operate without
enterprise model funding support
or address social issues
88 within their projects
51%
49%
44%
international funding
is slightly higher than
domestic support
work with volunteers
or people with other jobs
to save on HR expenses
that they cannot afford
20%
increase their
90%
revenue by renting
out their space(s) to
other businesses have to comply with
some form of
government
requirements such as
licensing or monitoring89
Cambodia The financial context
Country Brief of CCI organizations
Cambodia has several strong actors in the field Unsurprisingly, human resources and project costs
of CCI, many of which were initially foreign are among the largest areas of organizational
non-governmental organizations (NGOs) that expenditure. Rental costs are a worryingly high
transitioned into locally-registered organizations. expense item for many organizations, an issue
While the tax burden on CCI organizations is high that is particularly relevant for organizations in the
and rising rents are becoming a challenge, in 2018 capital, Phnom Penh, where rapid urbanization
the majority of CCI organizations generated a and foreign investment have resulted in a
surplus after two years of deficits. While Cambodia construction and real estate boom, leading to
has some legislation that is favourable to the CCI skyrocketing rents. Other significant expenses are
sector, it is rarely enforced to its fullest potential; marketing and travel. License fees and taxes are
instead, informal practices in public administration universal burdens that affect NGOs and for-profit
stifle progress of the sector. Other major factors businesses alike, accounting for up to 20 per cent
in the predominantly entrepreneurial CCI sector of expenses in both.
that need to be addressed are a lack of willingness
among the public to pay for cultural goods and The surveyed Cambodian CCI organizations come
services, and weak internal capacity to identify in all sizes and are distributed somewhat equally.
and manage in-come from diverse sources Over half (59 per cent) have an annual operating
budget of USD 100,000 or less. About a quarter of
all respondents operate on less than USD 10,000
The vast majority (82 per cent) of the organizations Ticket sales and individual donations are
benefit from private support in some way or important yet secondary, while license fees,
another. Most organizations rely on corporate royalties and investments are the least important
sponsorship, with three organizations attributing contributors to organizational funding. Around
the bulk of their income to corporate sponsorship a third of the surveyed organizations (seven of
and two from corporate donations. About 20 the twenty-two organizations) earn a significant
per cent of the surveyed CCI organizations proportion of their income (70 per cent and
reported being heavily dependent on corporate upwards) from the sale of tickets or artwork, and
sponsorship. these organizations tend to be performing arts
organizations and art galleries.
Around two-thirds (69 per cent) of the self-
proclaimed non-profit organizations and those not One organization operates a hybrid business
formally registered receive individual donations, model with a profit-generating enterprise selling
but only in a few cases do these donations arts related services which are directed to a
constitute one of the main income streams. A small foundation. One association receives a small
number of organizations are highly dependent on portion of funds from membership dues. About
grants. Only four organizations receive no private a third of the organizations surveyed also appear
money, whether from corporate or individual to derive some income from rental properties.
donations, relying instead on sales of artwork and/ Organizations are thus supporting themselves
or services. by various means, with some diversity in income
sources. But many respondents voiced concerns
Only two organizations reported receiving the bulk over an over-reliance on grants, individual
of their funding from the Cambodian government, donations and corporate sponsorship.
with one of them, a private organization reporting
the second main source of income being
corporate sponsorships, at a ratio of 6:4. These
two organizations were the least diversified and
entrepreneurial of all of the CCI organizations,
reporting no other sources of income. All
except the two receiving government funding
support themselves through private donations,
sponsorships and sales.
92
Indonesia
Country Brief
Introduction Organizations of
the CCI sector
In 2016 the Creative and Cultural Industries
(CCI) sector contributed IDR 922.59 trillion
Of the 118 CCI organizations surveyed in Indonesia,
(approximately USD 60 million), to Indonesia’s
over half (58 per cent) were unregistered. Of the
GDP, representing 7.44 per cent of the total.
registered CCI organizations, 11.8 per cent were
According to a forecast by Indonesia’s creative
limited liability companies while the rest were
economy agency, Badan Ekonomi Kreatif (Bekraf),
registered as collectives, non-profit associations
the CCI sector was expected to contribute IDR 1,200
or cooperatives. A small percentage was ‘informal
trillion to Indonesia’s GDP in 2020. Bekraf also
groups’. Private CCI organizations with any type
anticipated that in 2020 sixteen of Indonesia’s CCI
of formal registration structure can receive
sub-sectors would employ 17 million people, and
government funding, but they need to register
that Indonesia’s CCI sector would contribute up to
as a commercial for-profit entity in order to carry
USD 21.5 million of Indonesia’s foreign exchange.
out business activities that can augment their
income. The formally-registered organizational
The sub-sectors of the CCI sector are managed
status therefore does not reflect the reality of
by various ministries, with some overlap. For
management practice of CCI organizations, which
example, the creative services and ‘creative
is often more informal, collective, consensus and
sector as innovation hotbed’ are handled by
kinship-based.
the ministries of trade and industry as well as by
the labour ministry, while arts and culture are
handled by the Ministry of Education and Culture.
In addition to this, foreign aid and funding for civil
society organizations, including arts and culture
organizations, are regulated by the Ministry of
Home Affairs and the State Secretariat. However,
most CCI actors reported difficulty in funding
access from the governments. The CCI sector is
managed by workers in a precarious situation, who
juggle jobs and challenges with little space and
energy to focus on funding and self-development.
94
The financial context Funding opportunities
of CCI organizations and financing structures
Grants and other funding: Around two thirds
Operating costs (64 per cent) of the organizations rely on
private donations, with twelve organizations
Just over half of the respondents reported an reporting this as their largest source of funding.
annual operating budget for the previous financial One multidisciplinary non-profit organization
year of less than USD 10,000, while 13 per cent received 90 per cent of its funding from corporate
had an operating budget of between USD 10,000 donations. Over a third (35 per cent) of the surveyed
and USD 25,000. A large number of respondents organizations receive corporate sponsorships,
reported more deficits than profits over a three- with four reporting this to be the largest source of
year period. income.
The main costs tend to be administrative (salaries Financing in the form of bank loans and investment
and rent), followed by marketing and outreach and instruments are available for small and medium
project costs or the cost of producing/presenting businesses in all industries in Indonesia, including
their core activity. Many organizations operate on the CCI. New government policies allow artworks
a project basis, with staff receiving remuneration to be used as collateral for bank loans, and tax
only when there is project work (and funding). exemptions are now offered to private companies
Overall, the findings of the survey indicate that the who fund arts and culture, including research.
workers/initiators are subsidizing the cost of their However, despite encouraging state policies, there
creative initiatives with personal income made is a delay in the implementation of programmes;
from other jobs and gigs. therefore, the benefits of new policy directives
have yet to be felt by most CCI actors. Moreover, the
majority (73.7 per cent) do not receive government
grants. Of the 31 organizations that receive
government funding, three reported it as the bulk
of their income (over 70 per cent), with one, a non-
profit organization, reporting being almost 100
per cent government funded. The organizations
that receive the most government funding are
among the least diversified and entrepreneurial,
reporting little to no other sources of income.
Thirteen organizations receive money from foreign
government funds.
96
Lao PDR Organizations of
Country Brief the CCI sector
98
The financial context
of CCI organizations
99
Income: At least a third of the twenty-one
organizations surveyed show some diversity in
Challenges
their sources of income and some evidence of
entrepreneurship. The expatriate community • Small domestic market and low demand:
in Lao PDR represents the sole market for the The small size of the population, with low
performing arts and fine arts, and this sub-sector wages and general lack of interest in paying
is very small in scale. The handicrafts sub-sector for art and culture limits the market for
earns income from both the local market and cultural goods and services.
tourists. • Lack of government support: Financial
support from the government to the CCI
Sales are the most significant form of generating sector is very limited. The government
income, with most (80 per cent) organizations provides non-financial support in various
engaged in sales. Four of the organizations forms, including assisting with awareness
reported sales are their main source of income – raising, the diffusion of information
with two earning income from sales of merchandise to facilitate networking and business
and two from sales of artwork. opportunities, and encouraging public-
private partnerships for long-term project
Eight organizations receive income from rentals, work and greater sustainability.
with two organizations reporting this as providing • Unfavourable incorporation environment:
between 30 per cent and 50 per cent of their total The current status of CCI organizations does
income. Somewhat surprisingly for a lower-income not allow them to benefit from the country’s
country with still developing infrastructure tax exemption framework and other business
for CCI, three organizations reported fees from benefits and incentives.
royalties and licensing as sources of income. • Low levels of private philanthropy: Private
giving is underdeveloped in Lao PDR and
cultural workers tend to lack the knowledge
and skills required to fundraise.
• Lack of administrative skills: Organizational
staff are often underpaid and under-
resourced, and tend to lack project
management skills and knowledge of
intellectual property and legal frameworks,
which adds to their vulnerability in dealing
with third parties.
• Rising costs of doing business: This is a
particularly serious issue in the capital city,
which has high rents.
• Weak networks: This limits opportunities
for support between the members of the
community of practice.
100
Malaysia
Country Brief
Introduction Organizations of
the CCI sector
Malaysia is an emerging economy with a large
middle class. The country has several culturally
vibrant cities, including Kuala Lumpur, George The survey received responses from thirty
Town, and Ipoh. organizations in Malaysia, almost half of which self-
identified as multidisciplinary and almost a quarter
Except for the 2009 Creative Industries Policy of which reported being engaged in the performing
(Dasar Industri Kreatif Negara, DIKN), which arts. Other key sub-sectors included the visual arts
remains largely aspirational, the creative industries and the literary arts. One organization identified as
have not been embraced by the government as being in the art education field.
a significant area for economic development. Art
and culture are essentially seen as a way to achieve Almost a third (30 per cent) are registered as private
a tourism agenda or, more recently, to engage in companies, 20 per cent are registered as societies
urban regeneration and city branding efforts. or associations and 10 per cent are informal,
unregistered groups. Only one respondent
There is in general a lack of clear responsibilities reported being part of a limited liability public
and coordination among the sector’s stakeholders, company. A large number identified as collectives.
including the Department of Culture and Art
(Jabatan Kebudayaandan Keseniaan, JKKN) under
the Ministry of Tourism, Arts and Culture, which
assumes the overall responsibility for the arts and
cul-tural sub-sectors, and other agencies such
as the National Film Development Corporation
(FINAS) and the Malaysia Digital Economy
Corporation (MDEC). Allocated budgets to the
sector are inconsistent. The study found that most
small-scale CCI organizations do not have the full
knowledge of the government support they are
entitled to. The bulk of their income (such as from
individual giving and product/services sales) is
spent on running projects and programmes. Most
of them do not hire full-time professional staff,
likely due to limited resources.
102
Financial context of
the CCI organizations
Funding opportunities
Operating costs and financing structures
CCI organizations tend to run on small budgets, Grants and other funding: Thirteen out of
with half of them having a budget of less than thirty organizations (43 per cent) receive some
RM3,500 per month (approximately USD 865). The government funding although it is not clear
main costs reported by the surveyed organizations whether these are grants that organizations apply
were administrative (salaries and rent), followed by for or whether they are providing services to a
marketing and outreach and project costs, which government client, and three derive the bulk of
are the cost of producing and presenting their core their income from government. Interestingly,
activity. Rent makes up as much as 50 per cent of all three organizations are from Penang and all
running costs. Many organizations reported that three have either an education or community
they operate on a project basis, with staff receiving component in their work, suggesting a possible
remuneration only when there is project funding. niche in terms of regional government interest.
Only four of the thirty surveyed organizations Cendana, an organization set up directly under
reported having a surplus in the previous three the Prime Minister’s office in 2017, provides
years, and half of the respondents reported a some intermediary support to CCI organizations
loss in the previous three years. Thus, although in the form of grants and research for policy
organizations are managing to stay in operation, development. State agencies such as FINAS (film)
they often are in difficulty and have financial and MDEC (multimedia) provide sector-specific
deficits. grants and incentives. There is no Arts Council
or equivalent and the exact nature of support
provided by the Department of Culture under the
Ministry of Culture, Arts and Tourism is unclear.
103
Challenges
Half of the organizations benefit from corporate
support in some way or another, with four
• Ambiguity of government support: Where
organizations attributing the bulk of their income
available, funding tends to go towards
to corporate sponsorship or philanthropy.
projects and not to organizations themselves,
and for many the criteria for selection are
Income: Organizations support themselves by a
unclear. There is also a significant level of
variety of means, with some diversity in income
uncertainty on the status of tax exemption.
sources, ranging from government funding/
Furthermore, ministerial support for culture
grants and corporate sponsorship/philanthropy
tends to be subordinate to their support
to crowdfunding. The most commonly-reported
for tourism and there are low levels of
sources of income were individual donations
understanding and interest in the CCI sector
(nineteen organizations) and sales of tickets,
at the ministry level.
artwork, merchandise and services (seventeen
• Precarity of CCI labour: Although CCI
organizations). Most of the organizations
organizations in Malaysia are operating and
engage in some form of sales (tickets, artwork,
producing work at an international level of
merchandise, ser-vices), and nine derive at least
professionalism and are displaying a high
half of their income from these, with two (a
degree of resourcefulness in finding ways to
performing arts company and a private museum)
finance their work, they are often living hand
attributing more than 70 per cent of their income
to mouth and need to supplement their
to ticket sales. Almost two thirds (63 per cent)
income through work in other sectors. The
listed individual giving as a significant source of
CCI sector relies largely on unpaid labour,
money, with four deriving the bulk of their funds
and those who are paid receive low wages.
this way. One organization listed crowdfunding
Related to this are issues associated with
or crowdsourcing as a source of income but at
the underdeveloped philanthropic culture in
no more than 10 per cent of their total revenue. A
Malaysia.
second organization mentioned a crowdfunding
• Audience development is weak: Low
platform as a ‘passive’ source of income but did
consumption of arts and CCI goods and
not state how much they derive from this. Both
services, and low willingness to pay has an
organizations are informal collectives.
adverse impact on the sustainability of CCI
organizations.
• Challenges to freedom of expression and
assembly: The bureaucratic system of permit
applications and censorship of content
leads to groups either circumventing official
processes, which hampers their ability to
grow and become more self-sustaining, or
using already strained resources to comply
with tedious administrative requirements.
• Lack of arts management and business
skills: Around half the organizations surveyed
do not undertake business planning due
to lack of skills in this area and some
organizations lack skilled managers.
104
Myanmar
Country Brief
Introduction Organizations of
the CCI sector
The financial situation of the CCI sector in
Myanmar is characterized by a lack of access to
Of the eighteen CCI organizations that responded
funding, lack of funding diversity and limited
to the survey, three were registered as for-profit
internal capacity for financial planning and
private companies, three as non-profit associations
business administration. The financing context
and one as a social enterprise (though the actual
in Myanmar is very dependent on international
legal status of the organization is unclear). Four
donors and is restricted by bureaucratic hurdles to
were informal groups and two were collectives.
formally register NGOs and receive tax exemption
The remaining five organizations include an
status. Many organizations operate hand to mouth
international NGO, an unregistered business, a sole
and are subject to unpredictable project funding
proprietorship and an organization in the midst of
changes and consumer whims. This situation is
changing its status from a private company to a
currently not addressed by the government as
non-profit organization.
there is practically no regulatory framework for
CCIs in Myanmar other than the censorship and
The CCI sub-sectors represented among the survey
licensing regulations.
respondents included visual arts, film, performing
arts, craft, music and advisory services for the use
of culture to achieve social impact and conflict
transformation. The respondents thus represent
a good cross-section of the types of organizations
in operation in the CCI sector in Myanmar, without
any one category being dominant.
106
The financial context Funding opportunities
of CCI organizations and financing structures
Grants and other funding: Government funding
Operating costs for CCI organizations is almost non-existent in
Myanmar. Any funding seems to go through
Organizations in the CCI sector in Myanmar tend unofficial channels cultivated through patronage
to be very small entities, with only 18 per cent and favouritism. At least five organizations receive
reporting an annual operations budget of more support from foreign government funds and for
than USD 100,000. Half of the organizations three of these this money forms the bulk of their
operate on less than USD 25,000 per year. The small income.
size of the organizations is reflected in staff size
with the organizations having five staff members Donations from corporations and foundations are
on average, not all of whom are necessarily paid, a major income source for two thirds of the CCIs.
however. For more than half of these, this income accounts
for 40 per cent or more of their annual income.
Human resources and projects make up the Four organizations receive an income from
majority of operation expenses. Rent is the third- corporate sponsorships, but these are relatively
largest cost for most organizations, followed by small amounts.
utilities, maintenance and telecommunications.
Only a third of the organizations reported spending Over two thirds (69 per cent) of the non-profits and
money on marketing and outreach activities, with the organizations that are not formally registered
organizations reporting that their strained budgets receive donations from individuals, but only in a
mean that they are unable to accommodate such few cases do these donations constitute one of
expenses. About half of the organizations make use their main income streams.
of the legal provisions for tax exemption, but they
reported that this process is difficult and some Income: Most organizations have a mix of sources
respondents were unaware of their tax status. of income. Most (72 per cent) of the organizations
derive income from private sources, with at least
Most (78 per cent) of the surveyed organizations six reporting this as at the highest contributor of
are fairly new, as they have been in operation for income, mainly through corporate donations, and
fewer than three years. Of the rest, one reported four also list individual giving as a source. Sales
a surplus each year over the three previous years, of services and goods (both artwork/productions
one reported a surplus in two out of three years and merchandise) are among the largest income
and two reported a deficit in two out of three years. generators, indicating that many organizations
employ an entrepreneurial approach to maintain
their activities. However, many respondents noted
that the market for their products and services
is small and sales are not easy. Ticket sales,
rental income, royalties and license fees are only
significant sources of income for a few actors.
Three organizations receive income from rents
and two reported receiving income from fees from
royalties and licensing.
107
Challenges
• Small pool of institutional donors: While
some CCI organizations receive support
from international donors, for most of the
organizations gaining access to such funding
and achieving long-term financial security
are major challenges. Many organizations
operate hand to mouth and find it hard to
attract donors. The funding preferences of
the few institutional donors operating in
Myanmar tend to be for projects rather than
operating expenses.
• Formal registration is required for funding
support: While Myanmar’s law allows
organizations to operate informally, such
groups are ineligible for most forms of
institutional funding support.
• Onerous process of registering as an NGO
and applying for tax-free status: This
bureaucratic process is especially difficult
for small organizations and collectives that
have grown out of individual artists’ personal
initiatives. Such organizations therefore tend
to be predominantly self-financed, with weak
organizational capacity.
• Weak market: The market for creative
products is very small and very few people
are willing to pay for arts and culture or have
the means to do so.
• High rents and tax: The financial burden is
further strained by the high cost of rent and
taxes for those who pay them.
• Volatile political environment: The volatility
of the political environment and favouritism
of certain groups negatively impacts the
sustainability of CCI organizations.
• Lack of legal and regulatory policy
frameworks for the CCI sector: Uncertainty
and lack of clarity can hinder CCI
organizations.
• Weak organizational capacity: Staff at
CCI organizations often lack training in
business administration, financial planning,
resource mobilization, fundraising, strategic
communication and outreach.
108
109
The Philippines
Country Brief
110
The financial context Funding opportunities
of CCI organizations and financing structures
Grants and other funding: There are numerous
The two largest expenses of CCI organizations are recent years these have been extended to cover
human resources and project costs, followed by film and new media. These grant schemes
marketing. Utilities and rent are not major expenses include seed capital for initiatives and travel
because rental spaces are usually obtained via grants to enable participation in international
connections (and therefore at discounted rates) symposia and exhibitions. Such grants are overly-
and utility costs are generally manageable. Other bureaucratic, however, and in some cases involve
expenditures, including equipment rental and reimbursement schemes that put a financial
outreach tend to be specific to each sub-sector strain on CCI organizations. Because of this, CCI
and are also discounted due to the connections organizations tend to seek grants from foundations
that CCI organizations have. The dependence abroad, which more often than not have
of CCI organizations on networks highlights the streamlined procedures and involve immediate
frequently overlooked but important aspect of disbursement. Although ten organizations report
their work: the maintenance of social capital. receiving government funding, these are mostly in
This social capital ensures that these connections small proportions, and only one lists it as a major
flourish, which in turn ensures that these CCI source of income (up to 50 per cent) while two
organizations are able to remain in operation.. list it as about one third of their income. Around
three quarters (76 per cent) of the organizations
are receiving some form of private support, but for
most these are in relatively small proportions (20
per cent to 40 per cent) whether corporate funding,
corporate donations or individual donations.
111
their small margins from earned income, depends
significantly on their resourcefulness and their
Challenges
connections, which ensure low operating costs.
Sales appears to be the most significant form of • Difficulties in accessing government
revenue, with only one unregistered organization support: While the government provides
not engaging in sales of any kind. For 57 per cent several grant opportunities, these are
of the organizations, sales form the bulk of their often not advertised or information about
income. Six organizations reported income from them is not disseminated well because of
rentals and fees from royalties and licensing. technological challenges, and they involve
complicated bureaucratic procedures.
• CCI labour is undervalued: The development
of the creative industry is limited because
labour in this industry is undervalued.
Workers often participate on a pro-bono
basis, and creative work is usually seen as
merely a hobby.
• Inadequate baseline data for policy
formation: Lack of data hinders the ability to
address the issues faced by CCI organizations.
Although there are plans to draft a holistic
country framework for the CCI sector and
to collect data, it is necessary to ensure
that micro and small CCI organizations are
covered by this process.
112
Singapore
Country Brief The arts sector is heavily dependent on
government support and private funding sources
are under-developed A key issue is that the supply
114
Financial context of a surplus in two out of the three years. At the oth-
CCI organizations
er end of the spectrum, six reported a deficit three
years running.
Taking into consideration the high cost of living Twenty-five out of the thirty-four surveyed
and labour in Singapore, operating budgets are organizations (73.5 per cent) receive government
considerable, with twenty-one of the thirty-four grants and for fifteen of them it is their largest
surveyed organizations reporting budgets of USD source of funds. Most of these are non-profits, but
100,000 or more. Five organizations reported there are also five private companies that report
a budget of under USD 10,000, but all were receiving funding from the government, most likely
organizations with unsalaried members. in the form of fees from government agencies as
clients.
Fewer than half of the organizations seem to be
financially stable, with only seven reporting a
surplus in the past three years and eight reporting
115
Over half (53 per cent) also receive money from
private sources. Of these, all benefit from private
Challenges
donations, fourteen receive corporate donations
or sponsorships, ten receive donations from local • Limited domestic market: The country’s
philanthropic organizations or foundations, and small size affects supply and demand, where
three list international foundations as a source. creative capacities have outgrown demand.
• High cost of doing business: Particularly for
Income: Organizations support themselves more commercially-oriented organizations
through various means, with some diversity in and for-profit companies, daily operating
income sources. These include, in order of the most costs and expenses to maintain market
frequently cited and proportion of income received: competitiveness were all major concerns.
government funding, corporate sponsorship and • Donor cultivation: A lack of understanding or
philanthropy, individual donations and sales. A demand by donors, low levels of awareness
few organizations also reported receiving income or appreciation, and greater interest in
from royalties and license fees. sectors such as health and education. In a
small country, this is especially challenging
Eighteen organizations derive income from for smaller organizations that compete for
ticket sales and for four of these it is their biggest attention in a small pool against larger,
revenue source. One organization lists the bulk well-established ‘prestige’ or national
of their income from the sales of artwork and organizations.
merchandise, and this organization also happens • Audience development: While government
to be a for-profit company that listed ‘retailer’ as efforts have had an impact in terms of
one of the things they do as a company. A third infrastructure development and funding,
of the organizations derive most of their income greater education and audience-building
from sales overall and of these eight are private efforts are needed to stimulate interest in
companies and therefore more dependent on consumption of CCI goods and services.
commercial means of generating income. Two
organizations earn income from performance fees
and commissions, three from education-related
work and running workshops, and one listed
‘interest-free loan from family’.
116
Thailand
Country Brief
Introduction Organizations of
the CCI sector
Thailand has seen the emergence of small and
medium-sized enterprises (SMEs), start-ups and Of the thirty-two surveyed CCI organizations,
social enterprises over the past five years, and fourteen were registered as for-profit private
has seen increasing attention by the government companies, one was registered as a charitable
on developing a creative economy strategy and trust and one was registered as a social enterprise.
improving the export of Thai creative goods. The others were mostly unregistered collectives
In 2018, the government founded the Creative and informal groups.
Economy Agency under the Prime’s Minister Office
with the mission: ‘to promote the creative economy In Thailand, for-profit companies can register as
as a driving force for a balanced and sustainable either an ordinary or limited liability partnership
economy’. This agency acts as the focal point for or as a private company, while non-profits can
inter-ministerial collaboration and public-private register as foundations or associations. Few CCI
partnerships in support of the CCI sector. In recent organizations register as foundations, however,
years the government has also promoted creative due to the high cost of such registration.
economy networks, leading to the rise of industry
associations, federations, regional cooperation
clusters and local cooperation clusters. While
not new, the social enterprise model has only
recently been properly legalized, with the passing
of a law in 2019. The law is expected to lead to a
more sustainable and transparent financial and
operating mechanism for CCI organizations.
118
Financial environment Funding opportunities
of CCI organizations and financing structures
Grants and other funding: Currently, the Ministry
Operating costs of Culture makes available several annual
funds and grants to contemporary artists, both
By far the largest expense reported by the surveyed individuals and organizations, especially in the
CCI organizations was human resources, followed crafts and film sub-sectors, but this funding is
by the costs of rent, utilities and project costs. Most administered inconsistently and without a long-
pay taxes and licensing fees, and engage in some term strategy on developing the CCI sector as a
form of marketing, but these costs are low. whole. Thus, it tends to be perceived as static and
inflexible, and as a ‘one-off’ form of support.
Almost half of the surveyed organizations had been
in operation for fewer than three years. Of those In February 2019, Thailand passed a new law
in operation for three or more years, six reported on social enterprises aimed at facilitating the
having a surplus in the previous three consecutive creation of more socially-oriented businesses and
years and six reported a deficit over the previous this may have positive impacts on the CCI sector.
three years. Changes are anticipated for CCI frameworks and
strategies in Thailand as the government revises
its economic development plans and twenty-year
national strategy.
120
Viet Nam
Country Brief Organizations of
the CCI sector
Introduction
The survey responses indicate that in Viet
Nam most CCI organizations are registered as
In Viet Nam, the idea of developing policies and commercial enterprises. Of the twenty-eight
strategies for cultural and creative industries is organizations surveyed, 60 per cent were for-
relatively new. In 2016, the government approved profit organizations, with eleven registered
a national strategy for the development of cultural as private companies and a smaller number
industries, which focuses on five sectors: film, registered as joint-stock companies, ‘family’ or
performing arts, cultural tourism, advertising ‘household’ businesses, five as informal groups,
and fine arts, and photography and exhibitions. two as collectives and one as a social enterprise.
The Ministry of Culture, Sports and Tourism is Registration as a non-profit organization is
responsible for the implementation of the strategy complicated and registering as a social enterprise
at both the provincial and national levels. The is viewed as having no tangible benefits.
strategy is being implemented across the country, Regardless of their structure or registration status,
with priority given to three centres for cultural many organizations see themselves as non-profit
industries Ha Noi, Ho Chi Minh City and Da Nang. organizations because that category best reflects
their vision, mission and actual work.
122
The financial context
of CCI organizations
123
Income: Of the twenty-eight organizations
surveyed, only four show some diversity in their
Challenges
sources of income. Diversifying income sources
remains a challenge, especially in the context of • Unsustainable business models:
high uncertainty in securing financial resources Sustainability could be improved through
and managing human resources. Almost two the diversification of income sources, which
thirds (60 per cent) of the surveyed organizations could be achieved through expanding the
generate income through sales. For eight of the organizations’ range of products and services
organizations in the performing arts and visual arts and achieving a balance between cultural/
sub-sector, sales of tickets or artworks are their social purposes and financial profits.
primary sources of income. Nine organizations • Lack of skilled human resources: Hiring
reported sales of merchandise and services as people with the appropriate skills, combined
primary sources of income. with passion and resilience in the face of
uncertainty is a challenge.
• Lack of funding: Funding tends to be limited
and short-term.
• Lack of incentives and benefits:
Organizations in the CCI sector do not have
access to benefits in areas such as taxation,
concessions on land rental fees and access
to credit. This is related to ambiguities in the
legal status of CCI organizations.
• Market and audiences: Audiences/
consumers are limited; a domestic market
that would be willing to pay for CCI products
and services is still being developed.
124
125
Recommendations
126
Develop enabling
strategies, action
plans, policies and
data collection
mechanisms
It is important that
governments recognize that a
more holistic and integrated,
i. Audience development
cross-ministerial approach to aligned with arts education,
strategy planning is needed in and skills development of
order to achieve healthy growth artists and creative/culture
of the CCI sector in SEA. workers;
ii. Provision of hard
This process can begin infrastructure – upgrading
with detailed mapping of of national institutions,
the roles and strategies of subsidized rent for CCI
existing government players. businesses, enabling access
New agencies set up for to facilities and equipment
the administration of CCI – combined with soft
development and support infrastructure of a skilled
will need to take into account and knowledgeable work-
the overall coordination force as administrators,
mechanism. including those working
in government cultural
There is also an urgent need for departments;
more robust and representative iii. Ease of doing business and
baseline data that is sector- regulatory frameworks;
specific and that takes into iv. Sector-specific market
account production and analysis to understand
distribution chain linkages. production and distribution
chains.
As well as provision of funding,
policy development and/or
strengthening is needed in the
following areas:
127
Strenghten Implement
local governance new models of
and community organization
participation
This study found that many CCI
organizations are operating
Responsibility for CCI
in a hybrid manner, either
development needs to be
registered as for-profit but with
enacted at all levels, from the
a non-profit ideology, purpose
municipal level through the
and practice; or as for-profit
state/province/district level to
with strong social purpose.
the national level. Situating
While some appear to be
policy-making and enactment
surviving adequately with such
at the municipal level and
ambiguity, this situation has led
decentralizing government
to uncertainties about taxation
administration can be one way
and frustrations in identifying
to alleviate the pressures at the
and accessing appropriate
federal/state level, while also
income streams. Recognizing
allowing for greater access by
that if a clear operational model
people to their lawmakers.
is not defined and supported
by the system, an organization
There is a need for increased
will inevitably encounter new
advocacy for the facilitation
challenges as it grows. In
of dialogue between
alignment with global trends
government officials, civil
of revising organizational
society organizations and CCI
structures in recognition of the
practitioners and groups. Even
changing needs in both the
in countries like the Philippines
business and philanthropic
where there are already
sectors, it is recommended that
mechanisms for communication
governments of countries in the
between the state and civil
SEA region invest in exploring
society organizations, there are
a broader range of models.
obstacles in terms of access,
These could include social
efficiency and transparency.
enterprises, the community
128
interest company model and sustainable development
the various models identified as goals, including through
‘for-benefit’ organizations in the North-South, South-South
fourth sector. and triangular cooperation’,
it is recommended that
Thailand and Viet Nam are governments take advantage of
now introducing the social opportunities for intra-regional
enterprise model, with such cooperation, such as through
organizations becoming legally- agencies such as UNESCO and
recognized entities. This could ASEAN, for capacity-building
be beneficial for the sector in and knowledge exchange. Some
the long run. In Indonesia the of the systems of support and
‘cooperative entity’ has been schemes that are currently in
identified as a form supportive place, notably in Indonesia and
of the needs and hybrid Singapore, are possible models
nature of CCI groups, but such for adaptation. Cooperation
organizations are still relatively at the ASEAN level between
complex to register so adoption cultural agencies and ministries
of this organizational structure could help address deficiencies
is limited. in skills and knowledge within
government departments
in some countries with
Strengthen underdeveloped infrastructure.
collaboration across
the South-East Asian
region
In accordance with SDG Target
17.9: ‘Enhance international
support for implementing
effective and targeted capacity-
building in developing
countries to support national
plans to implement all the
129
Integrate culture
into sustainable
development
The integration of culture
into existing sustainable
framework development frameworks
is also a logical move for
Too often, cultural policy is countries that lack sufficient
not aligned with a country’s capital to offer financial aid to
sustainable development goals. the CCI sector. As CCI policies
It is important for national are still being developed or
governments to develop a are yet to be fully developed
holistic and comprehensive in many countries, there is an
system to support the culture opportunity for a much more
sector, one that goes beyond integrated and analytical
political and/or nationalist approach.
agendas. Culture should be
recognized for its contribution It is recommended that
to social capital, environmental municipal governments also
sustainability and community integrate the culture sector,
identity, beyond just economic notably small and medium-
benefits. Viewing culture sized CCIs, into their overall
solely in economic terms, development policies, taking
for its tourism income or its into account the specific
connection with the digital characteristics of the sector.
economy, can have adverse This will help to address the
impacts on sustainability precarity of CCI workers and
as it neglects fundamental enable them to better withstand
characteristics of the CCI sector. market forces and competition
with fully commercial
enterprises.
130
Conclusions
131
Credits Page 39
© SIRKAM, Women’s Creative
Page 61
© Lattankorn / Khao Niew Theatre
Circulation Company
Page 105
© Five Arts Centre
Page 106
Bottom left © Aung Kyaw Tun /
Inwa School Performing Arts
Bottom right © Myanmar Deitta
Page 109
© Myanmar Deitta
Page 111
© Apa Feliciano / British Council 133
The publication, Backstage: Managing Creativity and the Arts
in South-East Asia, draws on the findings of UNESCO’s recent
study of the creative sector in the nine countries of the South-
East Asian region (Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Viet Nam).