The commercial value of Kelantan and Terengganu states for radio station market

Usually a new radio station mass market will focus in Klang Valley as it is highest population region in Malaysia. In addition, Klang Valley region covers Malaysia's capital, Kuala Lumpur. Klang Valley covers Kuala Lumpur, Petaling Jaya, Rawang, Shah Alam, Klang, Subang Jaya, Putrajaya, Cheras, Puchong, Serdang, Kajang, Sepang, Cyberjaya, Kuala Langat, Banting, Sungai Buloh, Ampang, Selayang, and Batu Caves. Most of radio stations in Malaysia are mainly focusing in Klang Valley, Penang, Johor, Melaka, Negeri Sembilan, Kedah, Perak, Kuching and Kota Kinabalu due to higher commercial driven.

Among all Malaysia's states, Kelantan and Terengganu are the lowest commercial driven states, regardless radio broadcasting industry, or investment company. Now I'm going to talk about radio market in these region.

In Kelantan, and Terengganu, only Malay language radio stations can survive there well due to highest Malay population. East-coast based Astro THR Gegar and Manis FM did well there, even RTM Terengganu FM and Kelantan FM too. The rest of radio stations in English, Chinese and Tamil have no commercial value in Kelantan and Terengganu.

Politically, Kelantan and Terengganu are conservative states where currently held by PAS. So, a lot of controversial law and those conservative practices are implemented in those states. When the super conservative practices are implemented, there will have much restrictions to the people. Example: cinema divides men and women. Then, watching movies at the cinemas must turn on the light. Those conservatives policy will frighten the investors from developing Kelantan and Terengganu.

Same goes for non-Malay languages radio stations, Kelantan and Terengganu are not profitable to them. Here are the list of Malaysia TV and radio stations where unavailable in Kelantan and Terengganu via FM radio frequency:

* Chinese: 988 (Star Radio Group), One FM (Media Prima), goXUAN (Astro) and City Plus FM (Cense Media)
* English: Red FM (Star Radio Group disposed radio station), BFM
* Tamil: Raaga (Astro)
* Malay: Zayan (Astro), Best FM

Zayan is modern Muslim digital platform also a radio station by Astro, it targets modern Muslim listeners in Malaysia, but so far Astro has not expanded this radio station to Kota Bharu and Kuala Terengganu, I may think that these locations are conservative enough, did not fit to Zayan market. As Malay radio station to target modern Muslim, I feel it is freak when it does not expand in Kota Bharu and Kuala Terengganu.

Best FM (who is owned by Johor Sultan), based in Johor Bahru, it did perform trial transmission in Kuala Terengganu and Kota Bharu last year, but at last Best FM did not launch in Kota Bharu and Kuala Terengganu. I believed no commercial value to Best FM, plus Best FM contents are mostly based in Johor. In addition, Johor content are very far away from Kelantan and Terengganu culture, Johor content are more modern actually due to its geographical locations where just next to Singapore.

Aside political factor, some of my friends did ask me that why don't 988, one FM, and City Plus FM have frequencies in Kelantan and Terengganu. Actually I also did some "roughly" market research for these Chinese radio stations, according to their marketing, they are focusing on Chinese majority areas, so they don't go nationwide. Moreover, in terms of advertisement, the Chinese radio stations such as One FM and 988 FM are airing "non-Halal" products commercials during the break, the advertisers such as SPORTS TOTO, Magnum 4D, Loong Kee Barbeque Meat (龍記肉乾) promote their products via radio commercial break in order to attract Chinese consumers in Malaysia, actually found nothing problem.

Inversely, if 988 and One FM expanded coverage in Kelantan and Terengganu, I don't think they will get more revenue due to these advertisers are not interesting to promote their products on the radio which include these states. Plus, these advertisers direction is not complying to the culture of the states. Other than this, for listenership ratings, although if 988 and One FM have frequencies there, I don't think the ratings will be greatly increased, even Media Prima 8TV has no coverage in Kelantan and Terengganu for analog terrestrial television, but Kelantan and Terengganu people can watch 8TV via Astro CH708 and recent MYTV DVB-T2 digital terrestrial television.

Astro two Chinese radio stations MY FM and Melody FM do have Kota Bharu and Kuala Terengganu seats, but Astro put priority on coverage first. RTM Chinese Ai FM radio stations also have few frequencies in Kelantan and Terengganu, but RTM is government media, so that's government services actually.

Media Prima, STAR and other broadcasters prioritize on commercial value of the state, rather than coverage concern. Expand coverage in those regions who have no commercial value will not help a radio broadcaster to gain the advertising revenue where the radio stations need to bear the transmission fees of tower rental, salary of the staffs, and company incomes. Unless the radio broadcaster aim proper direction and target, so the revenue will be coming to them.

Radio broadcasting has same things with investment market company. Developers, restaurants, car service centers/showrooms network coverage are also based on commercial value of the region. I'm giving an example, Lexus Malaysia showroom/service centers in Malaysia.

Lexus is a premium vehicle brand by Toyota to compete with BMW, Mercedes-Benz, Volvo Audi, and Infiniti. Actually Lexus showroom and service center availability are based on the consumers' demand by region, so Lexus does not expand their showrooms and service center to the rural areas and low population regions because no Lexus consumers demand to buy the vehicles. If do that so, Lexus could face loss-making due to poor sales.

Current Lexus showrooms and service centers in Malaysia regions are Penang, Ipoh, Johor Bahru, Kuala Lumpur, Damansara, Kuching, Melaka and Kota Kinabalu. This reminds me to think radio stations commercial value and market aim when expansion plan is rolled out.

I pick another example of a radio station, that's my favorite BFM 89.9. It is an English business radio station, mainly targets PMEBs. So, its advertisers are mainly premium automakers, educations, property, investors, and premium business solutions. Recently, I also heard Volvo advertisement on BFM 89.9, their main vehicles on radio advertisement are S90 and XC60. Volvo is the competitor of Lexus actually.

When BFM 89.9 is willing to expand coverage to other territory, same as Lexus showroom and service center network coverage that I mentioned above. Coverage expansion is based on advertisers and commercial value of a territory.

As business radio station with premium brand advertisers, besides Klang Valley, other territories such as Melaka, Johor Bahru, Seremban, Ipoh and Penang are the mass coverage to them. Due to premium brand advertisers never invest their products in east coast, so the radio station has no interest to expand there due to no commercial value.

Kuantan (capital of Pahang state) is not so bad for most of the radio stations regardless any languages, but it is still not matured yet in terms of development, commercial driven, businesses and investment.

If I compare between Kelantan and Terengganu, Kelantan is poorer actually. Even when international or foreign tourists visit Malaysia, they usually travel Kuala Lumpur, Melaka, Sabah, Sarawak, Perak, Pahang, Penang, Kedah, Langkawi, Negeri Sembilan (PD), Johor and Selangor, but unfortunately less number of them visit Kelantan. Meanwhile Terengganu is slightly better a little bit than Kelantan because of Pulau Perhentian and Pulau Redang beautiful and attactive islands in the state.

In conclusion, Kelantan and Terengganu can have commercial value if these states are developed and opened by ceasing those conservative practices. So, if these states get developed, the investors will come naturally, then it will create job opportunities.