KUALA LUMPUR — Local industry leaders have expressed frustration over the RM40 million allocated for the Film in Malaysia Incentive (FIMI) fund, following its announcement in the Budget 2025 last month.
While the amount was part of a broader creative industry package, industry players have said that it is insufficient to support both local and international productions in the country.
Prime Minister Datuk Seri Anwar Ibrahim announced the allocation during the tabling of the budget in October, highlighting a total of RM65 million in increased funding for digital content to promote creative works, particularly those that embody the spirit of nationalism.
Of this, RM40 million is earmarked for supporting international film production in Malaysia.
Zurina Ramli, co-founder of Independent Pictures, expressed her frustration, saying, “It will be tough to survive.”
“I still have an application stuck in FIMI. At the moment, there are no domestic premium shows asking me to pitch.”
She added that the uncertainty surrounding FIMI’s disbursement of funds, combined with the limited allocation, is hindering the industry’s growth and reducing the quality of local productions.
In addition to the RM40 million for FIMI, the Budget 2025 also allocated RM25 million to MyCreative Ventures to support the creative industry through equity injections into high-potential companies and provide financing for creative social entrepreneurs.
Furthermore, the Madani Creative Youth Programme, with a RM30 million allocation, aims to attract around 16,000 youths to the arts through workshops, community development activities, and short film competitions.
However, despite these provisions, industry leaders, including Biscuit Films producer Magen Appathurai and Revolution Media chief executive Zainir Aminullah, have voiced concerns that the RM40 million allocated for FIMI will not be enough to sustain the film sector’s competitiveness.
“When we started with FIMI, we had RM100 million, then RM300 million to RM500 million, and now it’s down to only RM40 million,” Magen said, adding that the new budget “doesn’t make any sense.”
He pointed out that during the pandemic when studios had to implement strict safety protocols, leading to Malaysia losing a potential RM1.2 billion in spending because of prolonged border closures.
“Foreign countries are looking to film in Malaysia, but RM40 million is peanuts in comparison to the scale of things, and it has to be shared with domestic productions,” he continued.
Magen expressed concern that if major studios like Sony or Paramount Pictures come in, the entire budget would be consumed in no time.
“If Sony or Paramount Pictures comes in, we’re done. The budget is gone,” he warned. “The government needs to look deep and ask itself what it wants to do with the industry.”
Magen also questioned the effectiveness of promoting Malaysia at international events when the country’s incentives are in jeopardy.
“They’re still going to Busan, Cannes, why market something you can’t deliver?” he asked.
Magen’s concerns were underscored by the loss of a UK show worth RM5 million last week. As a result, 90 Malaysian crew members missed out on job opportunities when the production decided to cancel its plans in Malaysia and move to Mauritius instead.
“We can’t work at the government’s pace; the commercial industry works differently. It’s insanely not feasible,” Magen lamented.
The FIMI fund, which offers a 30% rebate for qualifying local and international productions, has been a key driver for the film industry. It also provides an additional 5% rebate for films that feature nationhood or cultural themes. However, the lack of funding provisions this year has caused growing concern.
Since its inception in 2013, FIMI has contributed RM2.53 billion to the local economy through film-related activities, including salary increases for crew and actors, as well as supporting studio rentals and production equipment.
In March last year, Communications Minister Fahmi Fadzil said the programme has generated RM8.68 billion by stimulating the hospitality, transport, catering, and legal sectors.
Industry calls for clarity and stability
Earlier this year, Revolution Media CEO Zainir Aminullah emphasised the need for stability in order to preserve Malaysia’s reputation as a filming hub.
“For the past decade, FIMI has been a successful programme, attracting international productions that boost our economy. Any delay in decisions or lack of transparency could have long-term effects,” he said.
Zainir also mentioned that his company had to turn away a major Australian project due to the uncertainty surrounding the rebate, resulting in lost local jobs.
Finas Chairman Datuk Kamil Othman acknowledged the challenges faced by the industry but highlighted the importance of involving local specialists and graduates in various production roles to create a more sustainable and economically impactful industry. — November 19, 2024
