THE local entertainment scene is currently undergoing a revival following two years of the pandemic. Thanks to various initiatives devised by the Ministry of Communications and Multimedia Malaysia (K-KOMM) and implemented by the National Film Development Corporation Malaysia (FINAS), filmmakers and creatives have gained access to valuable funding that has helped the raise the quality of their productions and encouraged the creation of more jobs, as Malaysia seeks to attract more foreign investment in the local film and television production industry.
Grants and incentives
One of the clearest ways that local filmmakers have received support from the government is through incentive funds and grants that are part of initiatives under K-KOMM, and channeled through FINAS.
One of the most prominent grants which has yielded results is the Digital Content Grant (DKD). From 2017 until June this year, an allocation totalling RM180.8 million made its way to industry players who received the DKD offer, to incentivise them to produce local works of various genres.
Among the recipients of this grant were the producers of the current number one film in Malaysia, Mat Kilau: Kebangkitan Pahlawan, which reportedly received a production grant of RM1.5 million and marketing fund of RM300,000.
The success of the film, which raked in over RM53 million during its first two weeks in theatres across Malaysia, Singapore and Brunei, has been hailed as a sign that the government’s policies have been successful at encouraging local filmmakers to produce quality works which can penetrate both the local and international markets.
Other benefits to local filmmakers include the Feature Film Screening Incentive (ITFC), which is the government’s way of easing the burden of companies which have to pay entertainment taxes to state governments, and enable them to continue attracting audiences to the cinema.
FINAS CEO Prof Dr Md Nasir Ibrahim said in a news report that, as of last month, nearly RM400,000 in incentives had already been distributed to 10 selected local production companies. In total, RM25 million has been allocated to help filmmakers, which will be distributed over the course of five years, from 2021 to 2025.
Film In Malaysia Incentive (FIMI)
Another K-KOMM-led initiative which has proven to be a success has been the Film In Malaysia Incentive (FIMI), which provides an additional financial incentive for the production of creative content within Malaysia, including a 30% cash rebate on qualifying productions, whether Malaysian or international. There is also an additional 5% rebate for international productions with ‘cultural test elements’, where the production house mentions or credits Malaysia, whether through the dialogue or onscreen.
To qualify, foreign film production companies must use Malaysia for location filming and/ or post-production, and co-productions with a Malaysian film producer must be majority foreign-owned. In addition, the minimum cost of film production - including post-production - must be at least RM5 million, and all of the expenditure must be spent on the Malaysian market.
The aim of the initiative is to encourage support for the Malaysian content production industry, and is intended to showcase Malaysia’s ability to become a preferred destination and film production hub.
In May this year, a Malaysian delegation led by K-KOMM and FINAS, together with 13 local film production companies, participated in the Marche Du Film, the largest international gathering of professionals in the film industry, in Cannes, France.
Originally aiming for a sales target of RM50 million in foreign investment, the delegation ended up securing a total of RM158.7 million in closed sales and potential investments from international studios and production houses that included Warner Brothers, Sony Pictures, BBC and Netflix.
The initiative’s overwhelming success this year proves that Malaysia has what it takes to draw in and accommodate productions of a higher calibre. FINAS hopes to be able to match the achievements at Marche Du Film during later excursions to other international gatherings at the American Film Market (AFM) and the Asian TV Forum & Market (ATF) later this year.
According to Communications and Multimedia Minister Tan Sri Annuar Musa, the initiative has brought countless benefits to the local economy, aside from enriching the local film and television production industry.
He said: “From 2013 to 2021, FINAS (through FIMI) has successfully brought in around RM4 billion in investments thanks to various international projects which have chosen to base a portion of their productions in Malaysia. This includes films such as Crazy Rich Asians, Kuu Kuu Harajuku, 6 Underground and the Disney+ television series The Mandalorian.”
Embracing technology
K-KOMM has also challenged the local creative industry to embrace the digital and technological revolution, and FINAS is hoping to answer the call through its Extended Reality (XR) Project. An application for RM8 million in funds to build the necessary facilities has been made to the Economic Planning Unit (EPU) and the Ministry of Finance, in order to take local film and video production capabilities to the next level.
XR technology utilises a combination of Virtual Reality, Augmented Reality and Mixed Reality and allows filmmakers to experiment with both special and digital effects. Under this project, FINAS has earmarked the Sound Stage in FINAS Hulu Kelang for implementation, and will allow production companies to reduce overall production costs in the long-term - including the rental of locations and props - as almost all effects will be able to be done virtually.
Among the advantaged: XR technology allows for special effects including backgrounds and landscapes to be projected directly onto an LED screen, and for more realistic lighting effects on actors and props, eliminating the glare from green screens.
In addition, improved XR technology would allow for film production to continue in situations where they would previously have had to be halted, whether due to time constraints, inclement weather conditions or in unexpected situations such as a global pandemic, as seen recently when most film productions were forced to shut down.
Proposal to cut entertainment tax
One of the entertainment industry’s long-standing issues has been the high tax (25%) imposed on creatives by state governments, which has been said to impede the growth of the local arts and film scene. K-KOMM has taken the initiative to intercede directly with local authorities in order to seek out a reduction in the amount of taxes paid.
K-KOMM Deputy Minister Datuk Zahidi Zainul Abidin told local media: “If the local authority imposes a very high entertainment tax, it will hamper the development of the film industry, and its quality.”
He added that that the government gave its full support to industry players to increase the number of local works, as well as increase the income of creative industry players.
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