Interview with : Arun Madhok, CEO of Suntec Singapore Convention and Exhibition Centre

How did an events organisation like Suntec cope with the crisis?

Arun Madhok - We had a full schedule for 2020, all our spaces were practically sold out, we were hosting a major motor show in January... We even celebrated Chinese New Year, wishing ourselves all the best for the months ahead... And shortly afterwards, at the very beginning of March, cancellations and postponements of events reached 20 million dollars! Before Covid, we were hosting more than 1,600 events a yearFrom the smallest of events with just a dozen guests, to the biggest events with tens of thousands of people. Suntec was almost always fully booked. At the start of the crisis, while many people were in denial, reducing the phenomenon to a kind of flu that would be resolved in three months, we quickly realised that it was a real crisis. long-term problem. We were forced to make a difficult decision, cutting the workforce in half as business came to a standstill. We implemented all the recommended health measures, closed the Suntec building in April as part of the circuit breaker, and switched our teams to teleworking from home.

What is your view on the conversion of convention centres to hybrid technology?

Arun Madhok - I'm convinced that every crisis brings its share of opportunities. It's up to us to find ways to emerge stronger. For many years we have been talking about develop a virtual componentBut it was never very popular. We're a well-established industry, and the professionals assumed that they had to travel to meet each other, that that was the only way to do it. Things changed. Suddenly, we've realised that we can see each other online and share information, that a keynote speaker from Seattle can have an impact on a conference organised in Singapore.

How long do you think this trend towards the virtual will last?

Arun Madhok - From a personal point of view, I think that face-to-face meetings are absolutely essential, but now it's no longer sufficient. I'm sure that when travel restrictions are lifted and everyone is vaccinated, face-to-face meetings will resume. But the idea of only having face-to-face meetings has had its day, and there will always be a virtual component nowI hope I'm right, because last October we worked with our partners to inaugurate a hybrid studio capable of hosting 250 people and broadcasting to thousands of participants online!

the hybrid is here to stay

Suntec and Singapore have a 'high-tech' image: didn't you have hybrid equipment before?

Arun Madhok - No, because there was no real demand. We could adapt on a case-by-case basis, if the organiser so requested, but nobody really saw any urgency in adopting new standards. But now, the hybrid is here to stay. We are fortunate to have a good partnership with Unearthed Productions, who manage all the technical aspects. We needed to work together because I don't think you can call yourself an expert on such subjects.. Feedback from the first customers has been positive, and we have decided to expand the business.open a second hybrid studio at the beginning of the year. Our business has definitely changed. Normality will be different.

The investment you make in switching to a hybrid must also be a long-term commitment...

Arun Madhok - Yes and no, because it's our partner who provides the equipment, the technology, the cameramen and so on. Suntec provides the space, the food and the service. So the investment isn't necessarily that big for us, we use existing resources to generate new income.

reach an international audience at a very low cost

Will the events organised at Suntec be aimed at a different audience?

Arun Madhok - According to forecasts by experts such as IATAThe global recovery in aviation will take time. For a player like Suntec, this means that we won't be able to welcome international guests. So I explained to my teams that we had to change our focus. In our name "Suntec Singapore International Convention and Exhibition Center", we need to forget about 'International' for a while... We are focusing on a local approachWe can't target beyond that. But with hybrid, I can reach an international audience at a very low cost. Event organisers can easily access a plug & play system, whatever their budget, whatever their size, and connect to an international audience until international travel picks up again. There is also the rise of e-sport. This requires the same infrastructure as broadcasting an event. We have therefore entered into another partnership with a player in this market, to inaugurate a new 'Esports centre' and organise competitions there, which are attracting a lot of sponsors. We need to think about how our facilities and our space can meet different needs, by targeting them specifically.

How do you see the return of face-to-face meetings and events?

Arun Madhok - Over time, meetings and events will resume, but differently. For example, instead of one annual event with 500 participants, three events with 100 guests on site, and 1000 participants online. The same volumes may return, but in a different way.

As you said, you are a "space provider". But a hybrid event means fewer participants on site... Does that mean changing your business model?

Arun Madhok - We need to find different cost structures, other sources of added value. In the past, our value was to have a vast space in the centre of Singapore, a destination that itself benefits from a central location. Things are changing. I'm also looking at attractions, for example, because you have to be able to target local customers. Until now, convention centres have been able to operate simply by selling their space. Now, more than ever, they need to find partners to make this space specialthen share the revenue generated. We are moving away from a buyer-seller relationship towards collaborative business models, in which we share the risks and the benefits of each event. We can no longer say: " you buy my space for three days, I don't care if it rains, if flights are cancelled, if a volcano erupts..." . These are more meaningful partnerships that take a longer view. It's an opportunity to change things. For years we've been saying that change is permanent. Now that we've had this episode, we know what real change means! I never thought I'd invest in a hybrid studio or an E-sport centre. Because we didn't have the time, we didn't have the space, and we were making money with the traditional model. There was no engine, especially for such a rapid evolution.

How do you choose the infrastructure to host your hybrid event?

Arun Madhok - In some cases, the customer will be limited in the speed of distribution, in the choice of platforms, or there will be additional costs. This is not our case. In 2013 we invested in a new data network, which was very expensive. We are now reaping the rewards. Eight years after installing this new network, we have never reached the maximum limit of the system, and we can add capacity if we need to. We're also well positioned because we have space, which allows us tohosting events while respecting social distanceWe have also reviewed our catering offer, as the buffets no longer comply with health regulations.

Do you think that this crisis, and the new hybrid situation, are changing the geography of MICE, perhaps in favour of Asia?

Arun Madhok - For several years now, major European events have had their Asian counterparts, like ITB Berlin with ITB Asia. But in my opinion, the European Union has a huge advantage thanks to its single market and the coordination between member states in terms of travel. We don't have that in Asia: each country imposes different rules on foreign travellers, which makes things more complex.

Despite the current climate, are you optimistic about the future?

Arun Madhok - We need to think positively! This isn't the first time we've been faced with a disruptive event, there are always disruptions, imponderables. Only this time it's a global phenomenon that seems to be here to stay. We need to be very cautious about how we invest. We may have some very good ideas, or the money, but we also need the people to bring these projects to fruition. And in that respect, I'm very lucky: I have a fantastic team, which gives me cause for optimism!