Karyawan president Freddie Fernandez expressed gratitude to federal territories minister Hannah Yeoh for the move, which will take effect on May 1.

Fernandez said high deposit requirements had long been a major constraint for organisers of events in the city.

The previously high deposit requirements had often been one of the main constraints for organisers in realising their events. As such, this improvement is expected to revitalise the industry ecosystem, making it more dynamic and inclusive.

“The reduction in deposit rates will not only ease the financial burden on event organisers but also create greater opportunities for industry players to plan and execute large-scale, high-quality events,” he said in a statement.

Earlier, Yeoh said deposits for local stage and cultural performances would be lowered from RM10,000 to RM4,000, while concert deposits would be set at RM10,000.

Rates for foreign artistes will also be reduced, with stage and cultural performance deposits cut from RM30,000 to RM8,000, and concert deposits from RM30,000 to RM15,000, in a bid to attract more organisers to the capital city.

Fernandez said a wide variety of events in the capital remained a key draw for both domestic and international tourists, contributing to the tourism, business and creative sectors.

“Event organisation is a vital component in the development of major cities such as KL. The industry not only contributes economically but also plays a significant role in enlivening the city through arts, culture, and entertainment.

“Such continuous efforts are crucial in ensuring the sustainability and competitiveness of the nation’s arts, culture, and entertainment ecosystem, both locally and internationally,” he said.