Effective Financial Management in Malaysia’s Alternative Theatre: Challenges and Best Practices

Effective Financial Management in Malaysia’s Alternative Theatre: Challenges and Best Practices

Syahrul Fithri MUSA*, Hafshizan HASHIM, Hamzah MOHAMED TAHIR, Abdul Walid ALI

Universiti Teknologi MARA, Selangor, Malaysia

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9020051

Received: 27 January 2025; Accepted: 30 January 2025; Published: 02 March 2025

ABSRACT

Alternative theatres, characterized by their small-scale operations, face persistent challenges in financial sustainability due to limited resources and high operating costs. This study aims to explore the financial management challenges specific to small-scale theatre productions and develop a tailored financial planning framework to address these constraints and enhance competitiveness. The research employs a qualitative methodology, adopting a case study design focused on two prominent entities: ThreeSixty Theatre and Revolution Stage Studio. Data collection involves in-depth interviews with key stakeholders, analysis of financial records, and field observations to comprehensively understand the financial dynamics of alternative theatre productions. The findings reveal that financial management in small-scale theatre productions is significantly influenced by factors such as the availability of funding sources, the size and expertise of production teams, and the clarity of task scopes. Additionally, the effective use of celebrity actors and strategic promotional efforts were identified as critical elements for optimizing financial outcomes. This study underscores the importance of a structured financial planning framework tailored to the unique challenges of alternative theatres. By integrating factors such as resource allocation strategies, actor popularity, and promotional planning, alternative theatre productions can achieve greater financial stability and operational success. These insights provide valuable guidance for practitioners and stakeholders in the theatre industry seeking to navigate financial constraints while preserving artistic excellence.

Keywords: alternative theatre; small scale theatre; theatre producing; financial management, Theatre Industry Sustainability

INTRODUCTION

Theatre productions in Malaysia can generally be categorized into mainstream theatre, medium-scale commercial theatre, and alternative theatre. According to S. F. Musa (2020), “theatre staged at Istana Budaya (National Theatre) can be classified as mainstream commercial theatre. In contrast, alternative theatre refers to performances characterized by experimental theatricality, small-scale productions, fringe elements, and independent (indie) approaches.”

The general theatre audience in Malaysia, particularly in the millennial era, tends to favor mainstream theatre performances held in prominent venues such as Istana Budaya. These productions are distinguished by their commercial aspects, including large-scale staging (production budgets, venue capacity, and production crew size), advanced technology, and the participation of renowned actors.

In 2003, a small black box theatre was established at Dewan Bahasa dan Pustaka (DBP) in Kuala Lumpur, known as Stor Teater DBP. This space has indirectly served as an alternative venue for contemporary theatre practitioners in Kuala Lumpur, particularly for staging their works on a smaller scale. The simplicity of its features, including limited audience capacity and minimal stage facilities, has become a primary appeal for emerging and young theatre practitioners to use the space as a stepping stone to introduce their works to the public. This development has created a unique “phenomenon” within Malaysia’s small theatre community, as the space gained popularity for small-scale theatre productions and began cultivating its own distinct audience.

The community of alternative theatre practitioners, especially those at Stor Teater DBP, has organically formed a collective identity within the social class of performing arts practitioners in Malaysia (S.F. Musa & Samsuddin A, 2018). This social identity reflects how individuals and groups perceive themselves in various life activities, such as artistic creation, cultural expression, religious practices, and community interactions. Consciously or otherwise, it fosters a shared ideology that manifests in performative forms, such as theatre performances and creative or non-creative literary materials. The pursuit of “alternatives” has shaped a broader understanding of self-perception, how individuals wish to be seen by others, and their place within specific social groups.

This phenomenon is viewed positively by Malay alternative theatre directors, who strive to explore unique styles and techniques distinct from what mainstream audiences typically experience in large-scale theatres. In balancing the dominance of mainstream commercial theatre, alternative theatre incorporates unique, exclusive, and innovative elements into its performances (S.F. Musa & Samsuddin A, 2018). Goodman (2004) defines mainstream commercial theatre as “large-scale theatre productions, funded by substantial budgets, and performed in venues with high seating capacities, such as Shaftesbury Avenue in London, Boulevard theatres in France, Broadway in New York, and major Off-Broadway venues” (p. 17). Furthermore, Goodman emphasizes that terms such as fringe, alternative, and mainstream can be interpreted through varying perspectives.

Financial management is a critical factor contributing to the success of a production (Zailani & Mohd Yusoff, 2017). A well-organized financial management system ensures that collected funds are utilized effectively, leading to a high-quality outcome. However, financial management may not be as concerning for productions with established reputations that can easily secure funding. In contrast, small-scale theatre productions often struggle to secure funding, especially if their name is not widely recognized. This financial challenge frequently affects young theatre practitioners, who typically lack experience and exposure to quality scriptwriting. Additionally, limited access to exemplary scripts compounds the challenges faced by these practitioners.

Small-scale theatre productions, also known as “economical theatre,” involve smaller casts, simpler sets, and are often managed by young and emerging artists (Fadzly, 2016). Such productions face significant challenges in securing opportunities due to limited funding. According to the article Cabaran Penggiat Teater Baharu di Malaysia (2020), insufficient funds affect critical aspects of production, such as hiring quality actors, stage set management, costumes and makeup, lighting, and sound design. The article further emphasizes that securing sponsorship requires productions to establish credibility, a challenging task for those with limited audience engagement and visibility.

This study examines financial issues in small-scale theatre productions, focusing on ThreeSixty Theatre and Revolution Stage Studio as a case study. Ridhwan (2015) highlights that comedies, which require lower budgets, tend to attract larger audiences due to their light entertainment value. Conversely, serious theatre productions require substantial financial investment, posing a significant challenge for small-scale productions. Additionally, Ridhwan (2015) notes that theatre faces stiff competition from electronic media, where the costs of staging a performance—including hiring celebrities, marketing, and props—are often prohibitive.

Vee (2020) identifies financial planning and management as recurring challenges for theatre productions. The author suggests pragmatic steps to address these challenges, including actor selection, director choices, technological integration, and setting appropriate ticket prices. Moreover, productions must balance performance quality with effective strategies to attract audiences and achieve profitability.

The public perception of theatre as an unprofitable field often discourages participation. High operational costs, including hiring celebrities, marketing, and prop usage, further deter involvement (Ridhwan, 2015). Inefficient financial management, coupled with a lack of economic and financial knowledge, can undermine the sustainability of a production.

Financial Management Issues in Alternative Theatre Production

Financial management is a crucial factor in ensuring the success of any production. With an organized financial management system, funds collected can be utilized to produce high-quality works. However, financial management may not pose a significant challenge for large-scale productions, as they are often able to secure funding with ease due to their established reputation. This stands in stark contrast to small-scale theatre productions, which operate with limited resources and are often less well-known. These small-scale productions are typically spearheaded by young theatre practitioners, many of whom lack extensive experience due to their relatively young age.

Alternative theatre productions, often small-scale in nature, are usually managed by emerging and young artists. Many of these practitioners are recent university graduates who are passionate about creating in a more open and independent capacity. Nevertheless, they frequently encounter challenges in securing opportunities to stage their work due to financial constraints. These financial limitations significantly impact various aspects of production, such as hiring skilled actors, promoting the performance to attract audiences, and preparing essential scenographic elements, including stage sets, costumes, makeup, lighting, and sound design. Without prominent names or high-profile affiliations, these productions face difficulties in securing sponsorships. This, in turn, hampers their ability to draw audience attention and establish credibility with potential sponsors.

This study explores financial management issues in small-scale theatre productions, with a focus on Theatrethreesixty and Revolution Stage Studio. The aim is to examine the financial management challenges faced by these productions and to propose a comprehensive financial planning framework tailored to the unique dynamics of alternative theatre productions.

his study adopts a qualitative case study design to deeply explore the workings of two prominent alternative theatre companies—Theatrethreesixty and Revolution Stage Studio—which have emerged as the most prolific small-scale theatre companies in the period from 2021 to the present. The selection of these two entities was based on several key criteria:

1. Prolific Output and Innovation: Both Theatrethreesixty and Revolution Stage Studio have demonstrated significant creative output and innovative practices in alternative theatre. Their continued presence and impact in the alternative theatre scene during the designated period make them ideal subjects for in-depth exploration.
2. Scale and Alternative Approach: As small-scale companies, their operational strategies, resource constraints, and audience engagement differ markedly from larger, mainstream theatre organizations. This contrast provides rich insight into the dynamics and challenges of alternative theatre production.
3. Geographic and Cultural Relevance: Both companies operate within diverse cultural milieus that reflect regional artistic trends and socio-political contexts, which are central to understanding the evolution of alternative theatre practices.
4. Availability and Willingness to Participate: The companies were also selected based on their accessibility and openness to participate in research, ensuring that data could be collected in a comprehensive and reliable manner.

To ensure the robustness of the study, a triangulation method is employed, involving three main data collection techniques: interviews with key stakeholders (producers, directors, and other creative personnel), direct observations of rehearsals and performances, and document analysis (including promotional materials, program notes, and critical reviews). This triangulated approach not only helps in validating the data collected but also provides a multi-dimensional perspective on the operational and creative processes within these companies.

Participant Demographics:

Participants in the study include a purposive sample of 15–20 individuals associated with both companies. The sample encompasses:

1. Producers and Artistic Directors: Individuals responsible for the creative and administrative decisions, representing approximately 30% of the participant pool.
2. Performers and Technical Staff: Actors, set designers, lighting technicians, and other technical personnel who contribute to the execution of productions. This group comprises about 50% of the participants.
3. Support and Administrative Personnel: Those involved in the organizational and logistical aspects of production, making up the remaining 20%.

Demographic data collected from participants include age, gender, years of experience in theatre, educational background, and their specific roles within the companies. This demographic profiling helps to contextualize the responses and understand how varying experiences and backgrounds might influence perspectives on alternative theatre practices.

Data Collection Process:

Structured Interviews:

The study uses a structured interview format, comprising a predetermined set of closed-ended questions. This method was chosen because the researcher was in the early stages of the investigation and aimed for an organized, efficient data collection process. Interviews were conducted via phone calls, where participants were provided with an overview of the study, its objectives, and the importance of their contributions.

1. Procedure: At the beginning of each interview session, the researcher explained the study’s purpose, detailed the intended use of the data, and obtained informed consent for audio recording.
2. Transcription and Verification: Recorded interviews were transcribed verbatim. Transcriptions were then sent back to participants for verification, ensuring the accuracy and authenticity of the responses.

Observations and Document Analysis:

In addition to interviews, the researcher conducted direct observations of rehearsals, performances, and backstage interactions to capture real-time dynamics and contextual details that interviews might not fully reveal. Supplementary data were gathered through document analysis, which included examining promotional materials, archival records, and published reviews to gain further insights into the companies’ operations and public reception.

Data Analysis

The verified transcriptions, observational notes, and documentary evidence serve as the primary data sources for analysis. A descriptive analysis is conducted to systematically summarize and interpret the data, providing a clear understanding of financial challenges, planning strategies, and operational dynamics within the selected theatre companies. Additionally, a thematic analysis approach is used to identify recurring patterns, insights, and themes related to the creative and operational practices within these companies. This methodical approach ensures the reliability and validity of the findings and adheres to established qualitative research standards.

Figure 1.1: Conceptual Framework of the Study

The conceptual framework diagram illustrates the research process, focusing on financial challenges and planning strategies in small-scale theatre productions. It begins with participants from Theatrethreesixty and Revolution Stage Studio, whose insights are gathered through structured interviews. The interview protocol centers on identifying financial obstacles and strategies employed by these companies. The collected data undergoes descriptive analysis, ensuring systematic interpretation and pattern identification. Finally, the study produces key outputs, highlighting factors contributing to financial challenges and effective financial planning techniques for sustainable theatre production. This structured approach ensures a clear, data-driven understanding of the financial dynamics in alternative theatre.

FINDING AND DISCUSSION

Limited capital is identified as the primary challenge for small-scale alternative theatre productions. The success of these productions often relies heavily on the strength of the script and the director’s interpretation. However, staging a theatre production incurs substantial costs, especially when including popular artists or celebrities, marketing and advertising, and other theatrical elements.

The findings of this study highlight that financial limitations and capital constraints are the primary challenges faced by small-scale theatre practitioners. This is evident from the feedback provided by a study participant:

“Yes, a lack of funding does have an impact. With more funds, we can do more, invest in marketing, and everything else.” (Study Participant)

These findings align with Ridhwan (2015), who stated that the costs associated with staging a theatre production are substantially high. Expenses include hiring popular artists or celebrities, marketing and advertising efforts, as well as the procurement of props. However, S.F. Musa, Affindi Samsuddin, (2020) suggests that small-scale theatre productions should allocate minimal capital to mitigate the risk of significant financial losses.

To address these financial challenges, small-scale productions are encouraged to adopt strategic approaches such as securing sponsorships and providing honorariums for crew and cast members. By balancing minimal capital investment with innovative financial strategies, small-scale theatre productions can better navigate the constraints of limited resources while ensuring sustainable operations.

Insights on Script-Driven Costs and Resource Allocation in Small-Scale Theatre Productions

Study participants highlighted that the financial allocation of a production is heavily influenced by the script it chooses to stage. As one participant noted:

“Therefore, it is important to consider the script being produced, as it determines all associated costs. A shorter script reduces costs, and vice versa” (Study Participant).

This observation aligns with Walianto (2020), who identified the script as one of the essential elements in theatre production. Addressing this challenge, Fadzly (2014) emphasized that scripts for small-scale theatre productions should adopt a more flexible approach, avoiding rigid structures. Directors and production teams are advised to adapt and refine scripts to ensure they remain within manageable budget constraints.

The study also revealed that the size of the crew and cast has a significant impact on production expenses. Participants shared their views on this issue:

“In productions like this, we typically have fewer people because we need to manage salaries.”
“Additionally, if everyone takes responsibility and contributes beyond their assigned roles, collaboration becomes crucial when working with limited funds.” (Study Participants)

These findings underscore the importance of efficient resource allocation and teamwork in managing costs effectively. Small-scale productions are encouraged to adopt collaborative strategies and script flexibility to navigate financial limitations while maintaining the quality of their work.

The selection of scripts for alternative theatre plays a critical role in incorporating artistic and theatrical elements that do not demand high expenditure. Scripts for small-scale productions should encourage flexibility and creativity. Directors and production teams must refine scripts to align with budgetary constraints when necessary.

Small-scale alternative theatre productions typically operate with a limited number of cast and crew members. In some cases, a single actor may take on multiple roles to reduce costs.

Drawing from the small-scale production financial management model developed by Pisali and Amat (2018), this study highlights the importance of activities as a core element. Sub-elements such as marketing, production, and logistics are key components identified in the model. The findings align with this model, emphasizing the role of activities, including rehearsal periods, in effective financial management for small-scale productions.

By addressing these challenges and adopting tailored financial management practices, alternative theatre productions can navigate financial constraints while maintaining artistic integrity.

The Role of Popular Actors in Small-Scale Theatre Productions

Another key element identified is the use of popular actors in theatre productions. While this approach often contributes to financial constraints faced by small-scale theatre productions, it also serves as a significant draw for audiences. Despite the high costs associated with hiring popular actors, Mohamad Ramli (2014) suggests that these expenses can be mitigated if the actors agree to participate under alternative arrangements. These arrangements may include leveraging good relationships, profit-sharing agreements, or the inherent strength of the script. Additionally, many well-known actors use alternative theatre as a platform to hone their craft, rehearse, and challenge their acting capabilities.

In the small-scale theatre financial management model, offering value propositions to actors is also emphasized. Small-scale productions must exercise strategic decision-making in offering appropriate remuneration to actors to avoid payment issues later.

When comparing large-scale and small-scale theatre productions, sponsors generally prefer the former due to the higher potential returns post-performance. However, past studies indicate that featuring popular actors in small-scale productions can effectively attract sponsors to invest in such ventures (Azizi, 2014).

Financial Planning Strategies for Small-Scale Theatre Productions

The second objective of this study focuses on identifying financial planning strategies for small-scale theatre productions. The discussion of this objective is structured around three key elements derived from the study’s findings.

1. Structured Framework for Financial Planning

The study highlights the importance of a structured framework as a fundamental component of financial planning. One participant emphasized that meticulous planning, particularly concerning the timeline of the production, is critical:

“Productions need to carefully plan the duration of the entire process, from start to finish. Rehearsal periods should be kept short, and the performance run should also be brief, as prolonged rehearsals and extended performances incur significant costs.” (Study Participant)

This insight aligns with the financial management model for small-scale productions proposed by Pisali and Amat (2018). The model identifies “activities” as a core element, including sub-elements such as marketing, production, and logistics. A notable connection between the study’s findings and this model lies in the emphasis on optimizing rehearsal duration to control expenses.

The Role of Popular Actors in Financial Returns

Another key finding identifies the inclusion of popular actors as a strategy to enhance financial returns. Although this approach poses challenges due to the high fees associated with hiring renowned performers, participants noted its potential benefits:

“Featuring popular actors can generate significant returns for the production. These actors attract audiences to watch the performances and can also secure external sponsorships.”(Study Participant)

Azizi (2014) similarly acknowledged that popular actors serve as a draw for audiences. While the cost of hiring such actors can strain small-scale productions, Mohamad Ramli (2014) suggested that this challenge can be mitigated if popular actors agree to participate based on goodwill or personal connections. Moreover, the financial management model for small-scale productions highlights the importance of offering value-based compensation to actors. Productions must craft strategic remuneration packages to ensure financial sustainability while maintaining high-quality performances.

Optimizing Production Activities

The study also underscores the need to streamline production activities, such as marketing, logistics, and the rehearsal process, to minimize costs. Effective time and resource management were identified as crucial elements in controlling overall expenditure.

These findings collectively emphasize the need for small-scale theatre productions to adopt innovative financial planning strategies, balancing cost-efficiency with the artistic and commercial demands of the theatre. By leveraging structured frameworks, strategic casting, and optimized production activities, small-scale productions can navigate financial constraints effectively.

Sponsorship as a Key Financial Strategy

The final element identified in this study is sponsorship. Participants emphasized the importance of sponsorship in reducing production costs and increasing overall financial returns:

“Sponsorship can reduce costs and simultaneously generate higher returns for the production.” (Study Participant)

In comparison, sponsors often favor large-scale theatre productions due to their potential for higher financial returns post-performance. However, previous studies suggest that the inclusion of popular actors in small-scale productions can attract sponsors to invest in these projects (Azizi, 2014). Sponsorship not only alleviates the financial burden on small-scale productions but also enhances the overall viability of the endeavor (S.F. Musa, Affindi Samsuddin, 2020).

Additionally, the findings align with the financial management model for small-scale productions, which identifies sponsorships as a critical component under the “partnership” element. Establishing strategic partnerships with sponsors enables production teams to offset costs and secure resources essential for a successful theatrical performance.

By integrating sponsorship as part of their financial planning, small-scale productions can mitigate monetary challenges and create a more sustainable framework for future endeavors.

FUNDING STRATEGIES

In the Malaysian context, small-scale theatre productions can leverage modern funding strategies to overcome financial constraints while connecting with local and global audiences. Crowdfunding platforms—both global ones like Kickstarter and local alternatives such as pitchIN—provide avenues for theatres to rally community support and raise capital directly from their audience base. Additionally, digital ticketing solutions integrated with popular Malaysian e-wallets (e.g., Touch ‘n Go, GrabPay, Boost) and mobile payment systems offer seamless and secure methods for ticket sales, encouraging impulse purchases and dynamic pricing models like early-bird discounts. These digital approaches not only streamline revenue collection but also allow for the collection of valuable customer data, enabling tailored marketing and audience engagement strategies. By combining these modern funding avenues with traditional grants and sponsorships, small-scale theatre productions in Malaysia can diversify their income sources and enhance their sustainability in a rapidly evolving digital landscape.

CONCLUSION

In conclusion, this study successfully addressed both research objectives by identifying the financial challenges faced by Theatrethreesixty and Revolution Stage Studio. Four key elements emerged: (1) the impact of limited funding, (2) the importance of the script, (3) the number of workers, and (4) teamwork. For financial planning in small-scale theatre productions, three main elements were identified: (1) the establishment of a structured framework, (2) the use of popular actors, and (3) optimizing production activities, and (4) sponsorship. These findings highlight actionable insights that can guide small-scale theatre productions in managing their financial strategies more effectively.

However, while this study provides a foundational understanding, it is evident that addressing these challenges requires a collective effort. The involvement of the public, government, and non-governmental organizations is critical in supporting and advancing the work of small-scale theatre productions.

From the research findings, several recommendations have emerged for practical application. It is suggested that these insights be adapted and implemented within the small-scale theatre industry to address financial difficulties and develop more efficient financial management techniques. Additionally, relevant organisations should introduce training programs aimed at enhancing financial management skills, reducing the gap in financial literacy among small-scale theatre practitioners. Such initiatives could empower productions to achieve sustainability and resilience in a competitive artistic landscape.

Innovative Funding Approaches: Practical Applications for Malaysian Small-Scale Theatre

Here are some specific examples of how small-scale theatre practitioners in Malaysia can implement these recommendations:

Crowdfunding Campaigns:

• Local Platform Use: A theatre company could launch a crowdfunding campaign on a Malaysian platform like pitchIN. For instance, they might offer tiered rewards such as exclusive behind-the-scenes videos, limited-edition merchandise featuring the production’s artwork, or even a meet-and-greet with the cast.
• International Reach: Additionally, using global platforms like Kickstarter, theatre practitioners can tap into the international diaspora interested in Malaysian arts, highlighting unique cultural narratives to attract backers worldwide.

Digital Ticket Sales:

• Integrated Payment Solutions: By partnering with popular Malaysian e-wallet providers like Touch ‘n Go, GrabPay, or Boost, a theatre company can set up a seamless digital ticketing system. This could include options for dynamic pricing—such as early-bird discounts, flash sales, or “pay-what-you-can” models—to encourage more ticket sales.
• Mobile App Integration: Theatre groups can develop or utilize existing mobile ticketing apps that allow for easy purchase, ticket sharing, and loyalty programs, ultimately building a more engaged audience base.

Hybrid Live and Virtual Performances:

• Online Streaming: In response to evolving digital trends, theatre practitioners can offer a hybrid model where live performances are simultaneously streamed online. This could involve selling digital tickets for virtual access, thereby expanding the reach of the production beyond local audiences and creating a new revenue stream.
• Interactive Digital Events: Hosting virtual Q&A sessions or post-show discussions via social media or dedicated streaming platforms can also provide added value to digital ticket buyers and foster deeper community engagement.

Community Partnerships and Sponsorships:

• Local Business Collaborations: By partnering with local businesses and cultural organizations, theatre companies can secure sponsorships that provide additional funding. For example, a theatre group could collaborate with a local café or bookstore to host preview nights or discussion panels, integrating cultural promotion with financial support.
• Educational Workshops: Offering workshops or masterclasses led by theatre practitioners can both generate additional income and build a stronger community connection. These sessions could be marketed as part of a broader funding strategy, where ticket revenues and workshop fees contribute to the production budget.

By integrating these strategies, small-scale theatre practitioners in Malaysia can diversify their financial resources while fostering a closer connection with both local and international audiences, ensuring greater sustainability and resilience in a competitive digital landscape.

These recommendations underscore the importance of ongoing collaboration and innovation in addressing financial management issues, ensuring that small-scale theatre productions can continue to thrive and contribute to cultural enrichment.

RECOMMENDATIONS FOR FUTURE RESEARCH

This study focuses exclusively on Theatrethreesixty and Revolution Stage Studio. To gain a more comprehensive understanding of financial management challenges and strategies among small-scale or alternative theatre productions, future research should expand its scope to include a broader range of small-scale theatre groups. Such studies would provide deeper insights into the realities of financial management issues and the techniques employed by these productions to navigate their constraints.

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