Gym operators welcome fee cut, but say impact limited

2026-03-18 - 01:50

Federal territories minister Hannah Yeoh recently announced a reduction in gym licence fees in Kuala Lumpur, lowering the rate from RM50 to RM10 per square metre. (Envato Elements pic) PETALING JAYA: Operators have welcomed the Kuala Lumpur City Hall’s decision to slash gym licence fees, but say the savings are too modest to influence pricing or profitability. Marie, founder of KOA Fitness, described the move as a step in the right direction after years of gyms paying licence fees far higher than those imposed on many other businesses. She said the previous rate was between 10 and 15 times higher than what many other businesses paid. “Considering gyms are actually promoting public health, that always felt a bit counterintuitive,” she told FMT. Marie said her gym previously paid about RM4,500 annually in licence fees, and the reduction would result in savings of about RM3,000 a year. “When you break that down, it works out to less than RM300 a month in savings,” she said. However, Marie said the reduction was unlikely to lead to lower membership prices because licence fees make up only a small portion of operating costs. “The reality is that licence fees are just one small component of running a gym. The highest costs are still rent, equipment financing, staff salaries, utilities and maintenance,” she said. Federal territories minister Hannah Yeoh recently announced the reduction in licence fees for gyms in Kuala Lumpur, lowering the rate from RM50 to RM10 per square metre. Yeoh said the move followed three years of engagement with industry players, including the Malaysia Gymnasium Association. She pointed to data from the National Health and Morbidity Survey 2023 showing that 32.6% of Malaysian adults were overweight, with 21.8% obese. Sara Suhaili, co‐founder of Good Juju Barbell Club, also welcomed the move, saying it was “honestly long overdue.” She said, however, that the change was unlikely to affect pricing at Good Juju, which operates on a session‐ and package‐based model rather than monthly memberships. “Our clients purchase packages for personal training, group classes or physiotherapy sessions. There’s no monthly fee to discount because that’s just not how we’re structured,” she said. Sara added that licensing fees have never been a major cost component for the business. “The 80% reduction is appreciated, but in real terms, it translates to a few hundred ringgit in annual savings. It’s not going to change how we operate or what we charge,” she said. However, she acknowledged that lower fees could help smaller operators or new gyms enter the market and encourage more gyms to obtain licences.