Organizers of the Good Vibes Festival in Kuala Lumpur, Malaysia, tell Billboard that the controversy surrounding The 1975’s performance at the festival, during which lead singer Matty Healy insulted the government and kissed a bandmate on stage, has left the festival in financial ruin and could limit future concerts in the country for years to come.

The claim is the latest in the fallout from Healy’s protest and the heavy-handed decision by the country’s communications and digital ministry to cancel the remainder of the festival while also banning Healy from playing in the country in the future. Malaysia places very restrictive rules on foreign artists performing in the country, and Healy’s manager “had acknowledged in writing that Matt Healy would adhere to all local guidelines and regulations” prior to his performance Friday, says Wan Alman, whose company, Future Sound Asia, has promoted the festival for more than 10 years. Alman adds that “artists are briefed on the guidelines before the event.”

Alman confirmed that Future Sound Asia is considering pursuing legal action against the band, as the cancellation led to heavy losses for the promoter. The company likely already paid out artist deposits for the entire festival and might soon be required to issue refunds to fans, depending on an outcome of an investigation by the Malaysian government. Festival organizers might be able to make a legal claim against the band, explained Tim Epstein, a leading attorney for independent festivals in North America, depending on the language of the contract between the band and the promoter.

Specifically, Epstein said he would look to see how the contract deals with potential instances of unlawful behavior and what, if any, language dealt with local guidelines and regulations around speech. He said he would also want to confirm where the talent agreement designated that legal disputes be heard; most contracts defer disputes to U.S. courts. Finally, Epstein said the festival’s event cancellation policy could offset any damages, depending on the language in the policy. While government intervention is typically covered under a policy’s “force majeure” language, the Good Vibes Festival’s specific policy might include other provisions that make collecting difficult.

The 1975 incident has cast a negative light on Malaysia — and documents obtained by Billboard show that foreign artists playing in the country must agree to guidelines that include a ban on men wearing shorts on stage, prohibitions on women “wearing clothes that expose the chest area or that are too high above the knees” and strict rules prohibiting “entertaining or mingling with the audience at any time.”

In order to invite foreign artists into the country, promoters must complete the Communication and Digital Ministry’s Application for Filming and Performance by Foreign Artistes — a 40-page document outlining how artists are allowed to dress on stage and what they aren’t allowed to say about the government.

According to Amnesty International, in Malaysia it is illegal to protest the government, dress in drag or possess films or movies deemed to have LGBTQ+ elements. Much of the country’s criminal code is enforced through imprisonment with access to a court hearing, public flogging and, up until last year, the death penalty, which is currently banned under moratorium.

Neither The 1975’s agent, Matt Baum with Primary Talent — which represents the band in Asia — nor its manager, Jamie Osborne, would comment for this article.

An agent familiar with international bookings who did not want to speak on the record tells Billboard that the number of countries run by repressive regimes that host concerts is still relatively small, and it’s typically the promoter’s job to explain the rules to the band booked for a show.

That can be a double-edged sword, the agent explains, noting that the festival promoter “also may not want to be overly open about it for fear of discouraging people from playing.”

In many cases, the promoter does their best to balance the artist’s own right to expression while also being careful not to anger the host government.

“The 1975 shouldn’t have played there if they feel so strongly but I understand how they got to where they are,” the agent said.

Since opening the country to concerts by foreign artists in 2000, the Malaysian government has required visitors to adhere to a fairly restrictive code of conduct. Among other things, it requires modest attire and a ban on “provocative acts” like kissing a member of the opposite sex in front of a live audience.

The rules were updated in March by Malaysia’s communications and digital minister, Fahmi Fadzil, to include bans on cross-dressing on stage and “criticizing any government agency charged with upholding the law.”

Also banned under the guidelines are women’s clothes with “high slits, and clothes that are too tight or figure-hugging,” as well as a general ban on “performing in a wild manner, provocatively and displaying actions that are contrary to the performance code of ethics.” Other no-nos include “performing actions or making utterances that may be deemed as seditious” and “entertaining or mingling with the audience at any time.”

While some LGBTQ+ activists accused Healy of cynically protesting homophobia in the country for attention, others said it’s the government’s heavy-handed decision to cancel the festival over a same-sex kiss that deserves condemnation.

The controversy over LGBTQ+ rights and freedom of expression in Malaysia won’t likely go away any time soon. Coldplay is set to perform at the country’s Bukit Jalil National Stadium in November for a show promoted by Live Nation, which is also expected to produce a concert for the group Lany in the country in August.