FACULTY OF ADMINISTRATION SCIENCE & POLICY STUDIES

BACHELOR OF ADMINISTRATIVE SCIENCE (HONORS)

CASE STUDY ADS512

PROJECT MAPS IPOH, PERAK

PREPARED BY: N4AM2285H

NO. NAME MATRIC NUMBER

1 MUHAMMAD NURHAIQAL DANIEAL BIN AZARUDDIN 2022470244

2 NURUL SYAFIQAH BINTI MUHAMMAD ZULFIKAR 2021471228

3 NURUL AMIRA NASUHA BINTI AMIRUDDIN 2021653206

4 TENGKU AZIATUL AKMA BINTI TENGKU ISMAIL 2021899532

5 IRDINA IWANI BINTI NORAFFENDI 2021889498

PREPARED FOR:

MADAM NORAZLIN ABD AZIZ

 TABLE OF CONTENT

1.0 INTRODUCTION 3
2.0 PROBLEMS 4
2.1 Financial Challenges 4
2.2 Licensing Agreement Disputes 4
2.3 Delay of Project 5
3.0 SOLUTION 7
3.1 A Holistic Financial Solution 7
3.2. Settle the Debt 8
3.3 Plan Budget 9
4.0 CONCLUSION 9
5.0 REFERENCES 10
1.0 INTRODUCTION

With the intention of establishing Asia's first animated theme park, MAPS was constructed in
Meru, Ipoh. Expectations are so high that the theme park draws most of the travelers. MAPS
was constructed at an estimated cost of RM520 million, driven by optimism and profit forecasts.
Perbadanan Perak Berhad (PCB) and the Sanderson Group are partners in this project. The
aim has slid from the outset. The 2015 opening date of this animated theme park was
postponed. MAPS didn't launch until June 2017, a mere two years later. As the first animated
theme park in the area, hopes are still high that it will become a popular tourist destination, even
if it is getting late.

MAPS failed to draw in tourists despite the addition of many new activities and attractions.
There are a lot of presumptions made about why this happens. There isn't any significant
promotion among them, not even international promotion. Because of this, MAPS's existence is
overlooked, especially by foreign visitors to the area where they are a major target. Many
believe that it is because of the RM200 admission fee, which is deemed to be pricey. Taking this
possibility into account, the administration decides to lower the ticket price. However, the
reaction is still unsatisfactory. Therefore, starting in March 2019, a radical move was made by
doing away with admittance tickets as a "desperate" strategy to draw people.

Only those who utilize the available gaming facilities will be charged. If plenty of people utilize
the facilities, MAPS intends to make some money. However, this endeavor was likewise a
failure. The losses suffered by MAPS are uncontrollably increasing in amount. At that point, the
debt was thought to have been more than RM 500 million. The revenue received is far
insufficient to pay for ongoing expenses. MAPS life is therefore short. The tough decision to
immediately cease MAPS operations has to be made in order to prevent more
devastation.MAPS will officially close on Tuesday, January 28, 2020, "until further notice." It
remains shuttered, deserted, and silent to this day, and no one knows what will happen to it.
​
2.0 PROBLEMS

2.1 Financial Challenges

One of the cause of the closure of Ipoh's Theme Park, MAPS (Movie Animation Park
Studios) is financial challenges that plagued its operations. Theme parks are capital-intensive
ventures, requiring substantial investments not only in the initial construction phase but also in
ongoing maintenance, marketing, and staffing.Operating on a model that demands substantial
initial investments for land acquisition, infrastructure development, and the creation of
captivating attractions, MAPS Ipoh faced the burden of high fixed costs. Additionally, the
ongoing operational expenses, ranging from staff salaries to routine maintenance and
marketing efforts, likely strained the park's financial resources.

Other than that, it is believed that there is mismanagement of funds by some political
figures and a hefty RM520 million cost spent on the project. For evidence, MAPS missed
payments on a loan from Affin Hwang Investment Bank totaling RM25.7m in October of 2019
and the remaining balance is RM240.7m (ANSTEY, T. , 3 February 2022). The missed
payments could have been a sign of financial difficulties for MAPS Ipoh, which might have led to
further challenges in securing funding or attracting investors.

2.2 Licensing Agreement Disputes

Next, Ipoh’s Theme Park ,MAPS also faced licensing agreement dispute. Dreamworks
Animation L.L.C. terminated a licence with the operator while The Smurfs' licensor, IMPS,
terminated an agreement after MAPS failed to pay a fee of over RM1m for rights that were owed
(Othman, F. S. ,10 August 2018). The termination of this agreement meant that MAPS was no
longer able to use The Smurfs characters and intellectual property in its theme park.

These terminations of licensing agreements with major entertainment companies like

DreamWorks Animation and IMPS were significant setbacks for MAPS. The termination of the
DreamWorks Animation agreement, in particular, was seen as a positive move by some, as it
allowed MAPS more freedom to expand and conduct its marketing. However, the termination of
both agreements meant that MAPS had to rely on its own intellectual property and characters to
attract visitors to the theme park.

The termination has led to the need for MAPS to find alternative ways to attract visitors
and generate revenue, such as signing contracts with other high-technology companies and
providing special transportation to the park to attract more customers3. Overall, while the
termination has provided more freedom for MAPS, it has also posed challenges in terms of
maintaining the park's attractiveness and profitability.

2.3 Delay of Project

The third problem faced by by Ipoh’s Theme Park, MAPS was when it encountered
delays. The story of MAPS Perak, a theme park project that was first revealed in the first few
months of 2014, happened to be one of ambition, difficulties, and the unavoidable impact when
big projects are delayed. With the goal of becoming a top attraction, the project's original
schedule was for a grand opening in 2015. But the road to realisation turned out to be far more
complicated than expected, causing major delays that would ultimately have a big effect on the
project's financial situation.On of April 2017, building on MAPS Perak, which is expected to have
an astounding 40 attractions spread over six carefully planned themed zones, was reportedly
96% complete. Stakeholders and enthusiasts were anticipating this long-awaited theme park's
debut with great excitement as it approached its near-final stage of development. Even yet,
there had been delays along the way, which had already had an impact on the project's
progress.

There were costs for the delayed opening. Unexpected hurdles resulted in an extended
building period, which raised the project's expenses. A budget overflow was caused by the
requirement to keep construction workers on for longer periods of time as well as a number of
other extra costs built up over the extended scheduled time. Because of this, more money was
needed to finish the project than was originally budgeted, which resulted in an unforeseen rise
in the final cost.
 The budget overflows caused a heavy financial burden on MAPS Perak, which had
far-reaching effects on its ability to operate. With its debt load increasing, the enterprise now
had to deal with harder economic conditions. The extended duration of the construction process
resulted in higher immediate expenses and a knock-on impact that made it more difficult for the
project to make money on schedule.The extend of the construction term had unintentionally
turned MAPS Perak into a project that had to deal with a significant debt load, even if it was
necessary given the delays experienced. The project's lengthy development period required a
buildup of debt to pay the increasing expenditures. This financial strain would require careful
management and strategic planning to overcome.

As MAPS Perak eventually opened its gates to the public on June 26, 2017, the
celebration was tempered by the looming financial challenges.The impending financial
difficulties dampened the excitement when MAPS Perak finally opened to the public on June 26,
2017. The project's endurance was demonstrated by its delayed conclusion, which also
highlighted the careful balancing act needed to manage the complex interactions between
budgets, schedules, and unanticipated challenges. In the context of big projects, the MAPS
Perak for example offers as an eye-opening lesson on the value of careful planning, risk
management, and financial restraint in ensuring the long-term viability of audacious
undertakings.
3.0 SOLUTION

3.1 A Holistic Financial Solution

The demise of Ipoh's Movie Animation Park Studios (MAPS) exemplifies the complex
financial challenges that face capital-intensive ventures, particularly those in the theme park
industry. The demand for significant investments in construction, maintenance, marketing, and
staffing puts a significant strain on the economy. MAPS Ipoh, which was already dealing with
high fixed costs and ongoing operational expenses, faced additional challenges as a result of
alleged mismanagement and a large project cost. Missed payments on a large loan from Affin
Hwang Investment Bank added to the financial strain. This paper proposes a comprehensive
financial revitalization strategy to address MAPS Ipoh's multifaceted problems.

First and foremost, The resurgence of MAPS Ipoh necessitates a multifaceted approach.
Immediate strategic financial restructuring should be pursued with Affin Hwang Investment
Bank, including options such as extended repayment periods and debt-to-equity conversions.
Simultaneously, operational efficiency and cost reduction are critical. A thorough audit of
expenses, streamlining operations, and renegotiating contracts can all result in long-term cost
savings. To rebuild trust among stakeholders, transparency and accountability must be restored
through an independent financial audit, backed up by strong governance measures. Strategic
investments in attraction enhancement and innovation, revenue diversification, and community
engagement through discounted offerings and events are critical steps.

Moreover, This paper's proposed comprehensive financial revitalization strategy reflects

a nuanced and multifaceted approach to addressing the myriad issues confronting MAPS Ipoh.
Immediate attention must be paid to strategic financial restructuring, operational efficiency, and
transparent governance. Extending repayment periods, converting debt to equity, and
cost-cutting measures will alleviate immediate financial pressures. Stakeholder confidence must
be restored through an independent financial audit and strong governance measures.
 3.2. Settle the Debt

Next solution is Ipoh’s Theme Park ,MAPS faced licensing agreement dispute.
Dreamworks Animation L.L.C. terminated a license with the operator while The Smurfs'
licensor, IMPS, terminated an agreement last year after MAPS failed to pay a fee of over RM1m
for rights that were owed. This is one of the strongest reasons behind the closure of MAPS in
Ipoh. The failure to apply for a license from the party should have given a strong reason why
this theme park needs to close and end operations. This is because this construction did not get
a consensus from the Perak state Menteri Besar at that time and even this construction has an
outstanding debt of RM 1 million which has caused Dreamwork Animation L.L.C. immediately
terminate the MAPS license.

An effective solution to this issue is that MAPS should pay off all outstanding debts first
so that the important party can give permission for the license that has been applied for. MAPS
should have planned the opening of this theme park carefully and discussed with important
people such as the Menteri Besar of the state of Perak. But this matter became complicated
when the Menteri Besar said that they had nothing to do with the construction. It is clear that this
construction was built imprudently and that resulted in not getting a license from the right party.
MAPS must give high confidence to Dreamwork Animation L.L.C so that the license can be
approved and transform this troubled place into a restored theme park. Every outstanding debt
should be settled immediately so that no other issues will arise.

. This led to the closure of MAPS in Ipoh, as the construction did not receive a
consensus from the Perak state Menteri Besar and had an outstanding debt of RM1 million. To
resolve this issue, MAPS should pay off all outstanding debts first, allowing the important party
to grant permission for the license. The construction was built imprudently, resulting in the lack
of a license from the right party. MAPS must give high confidence to Dreamwork Animation
L.L.C to approve the license and transform the troubled place into a restored theme park. All
outstanding debts should be settled immediately to prevent further issues. If not, MAPS will be
given a negative view by all parties. Things that are considered trivial like this will have a bad
effect in the long run such as the closure of the center of the theme park and become
abandoned as it is now. It is a bad thing for the state government.
 3.3 Plan Budget

As you all know, this theme park project, MAPS, which was supposed to be completed in
2015, was delayed a little at the beginning and could be completed in 2017. This is because
they lacked the budget to complete the large theme park. The solution that should be taken by
the party responsible for this theme park is to present and prepare a budget that is sufficient or
more to facilitate the construction process and for it to run smoothly as planned. If the budget is
less than what was planned, it will cause borrowing money from other parties and will cause
other problems in the future.

The construction of this theme park has also been told by the state government that they
are not involved and do not contribute to any construction related to this theme park. This
caused the party that built this theme park to fail to find stronger financial resources to complete
it within the stipulated time because there was no solid support from the state government.

The party responsible should be alert with the budget of this theme park and make
smooth planning. . A budget less than planned could lead to borrowing from other parties and
future issues. The state government has denied involvement in the park construction, causing
the party to struggle to find stronger financial resources to complete it within the stipulated time.
This lack of solid support from the state government has hindered the project's progress and
potential future issues.
4.0 CONCLUSION

Based on the conducted study, it is evident that MAPS Perak experienced issues inside
their organization. The political, economic, technological, and social environments all have a
significant impact on MAPS Perak's ability to operate. The management staff of this amusement
park can take into consideration the ideas and suggestions derived from this research so that
MAPS Perak can carry on as normal.In addition, MAPS Perak has to think about implementing
fresh and sensible marketing techniques in order to establish their worth in the eyes of the
general public.

There are certain problems regarding to financial challenges, licensing agreement dispute and
last but not least the project had been delay. This are the factor why this theme park need to
closed. Other than that certain customer complained that the fee was too expensive and the
game inside of the was not fun. So, after few years MAPS need to shut down because of all
this problems.

Improvements to the amusement park's services also help to rescue it from this dire condition,
since MAPS Perak offers entertainment services to the general public. The management group
need to pay close attention to every last detail.In summary, the purpose of this research is to
provide suggestions and recommendations that will assist in resolving the issues that MAPS is
facing and enable MAPS Perak to maintain its current status as a one-stop entertainment
destination for everyone.
5.0 REFERENCES

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2. Othman, F. S. (2018, August 10). “termination of maps licensing agreement with
DreamWorks Animation the right move”: New straits times. NST Online.
https://www.nst.com.my/news/nation/2018/08/400080/termination-maps-licensing-agree
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rugi atau berhutang-Menteri Besar. Malaysia Gazette.
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7. Manjit Kumar. ( 2022, July 14). Perak PAC members urge state govt to table audit report
on MAPS- The Star
https://www.thestar.com.my/news/nation/2022/07/14/perak-pac-members-urge-state-gov
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8. K. (2023, January 1). Ke mana hala tuju taman tema MAPS di Perak. Kosmo Digital.
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9. Syamimi, N., & Syamimi, N. (2022, May 17). Selepas 2 Tahun Ditutup Dan Terbengkalai,
Ini Keadaan Terkini MAPS Ipoh Yang Menyedihkan. VOCKET.
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Here's An Alternative. (2020, January 28). Ipoh City Guide.
https://theipohguide.com/maps-ipoh-closed-down/
11. Perak Corp keen to offload ailing theme park. (n.d.). The Edge Malaysia.
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344511&dom=n&email=web&pub=AMe&date=