Reliance branches into AMC work

RELIANCE Conventions & Events Malaysia has started to branch into the AMC business with Malaysian Oil & Gas Services Council as its first client.

General manager KC Fu said many associations in Malaysia are “maturing” and need to focus on strategy rather than day-to-day management in order to add value to the organisation.

“Membership in associations is dwindling and the younger members do not want to see an archaic association structure. A lot of young medical doctors, for example, are visionary and dare to speak up. An old-school association is not appealing for them. The older members are becoming more receptive to the forces of change; they know if they can’t attract the younger members, their association will face a natural death.

“In terms of our AMC services, we don’t get into these strategic aspects, but we aim to take away the administrative and non-critical workload, so that the association is free to focus on strategy,” Fu said.

Among the services offered in its two-year contract with Malaysian Oil & Gas Services Council are managing the association’s membership database, automating billing of membership fees and renewals, and website content and social media management.

In a profit-sharing model with the council, Reliance is re-engineering the website so that its content will engage anyone seeking information on the oil and gas industry and not just the association’s members. The wider audience will then enable Reliance and the association to create advertising opportunities in the portal, thus giving the council a new revenue stream, said Reliance’s director of operations, Rahul Bharadwaj.

“If they were to do this themselves, it would involve a huge investment in technology, aside from the need to have the expertise/knowledge,” Bharadwaj pointed out.

“By appointing us, they save money as there is no longer the need to hire 10 to 20 administrators to run the association, they have a new revenue stream and they have the opportunity to build better content to share with their members as well as to attract a newer crowd.”

However, Fu said the PCO business is actually more lucrative than the AMC business. “That said, if you are working so closely with an association, you have the first right of refusal for managing its conferences or events. An AMC is like an extended arm of the association – we would know the people, the culture, the politics, etc, so it is easier to manage the expectations, unlike a PCO who comes in from the cold. By the time it understands the association, it’s close to conference time.

“So while it’s not as lucrative as PCO business, an AMC is a long-term, strategic move that will in the end reap benefits,” said Fu.

Meanwhile, the latest study by the International Association of Professional Congress Organisers shows 44 per cent of its members are already offering AMC services.

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