KUALA LUMPUR, Dec 18 — The amendment to the National Film Development Corporation Malaysia (Finas) Act 1981 empowers the corporation to establish companies to manage assets, infrastructure, training, and research in the film industry, without being involved in film production or distribution.
Communications Minister Datuk Fahmi Fadzil said the allocation was clearly detailed in “black and white” in the act in Sections 61F, 62B, 62C and 62H, which limits the scope of the companies’ activities to the management and maintenance of Finas-owned facilities, training, the provision of film services and equipment, and research activities related to industry advancement.
“The company in question is solely for these four purposes, not for producing or distributing films, and will not compete with industry players. This isn’t just the minister’s words, it’s in the act we’re bringing,” he said when winding up the debate on the Finas (Amendment) Bill 2025, which was later passed with a majority vote after being debated by eight senators in the Dewan Negara today.
Fahmi said the need arose following the acquisition of new Finas infrastructure, including high-end post-production facilities such as Dolby Atmos editing suites at the Finas headquarters in Hulu Kelang, which require maintenance and professional management.
“If Finas is given the authority to establish a company, its purpose is to safeguard assets for training and performing work in the field of filmmaking,” he said.
He also said efforts to amend the Finas law took time as it involved improvements to the corporation’s internal structure, including by appointing legal advisers, in addition to involving young lawyers in preparing draft amendments to the act.
Fahmi emphasised that the amendment would give confidence to industry players to work with Finas.
“We hope these efforts will bring Finas closer to filmmakers so Finas can face the times and be ready to help our film industry continue to thrive worldwide,” he said.
Commenting on the outdated definitions in the act, Fahmi said that some terms still need to be retained for archival purposes and the storage of old films, in line with the functions of the national film archive, which has been absorbed into Finas.
In relation to film censorship, he explained that the Film Censorship Board (LPF) is under the purview of the Home Ministry, but the government is prepared to consider the need for clarification through discussions between Finas and LPF, including considering feedback from filmmakers and the use of technology such as artificial intelligence (AI) to assist in the evaluation process.
Fahmi also emphasised that the government will not impose licensing on influencers or podcast production, as the form of content delivery is constantly changing, while the details of filmmaking activities requiring licensing will be clarified through regulations and a whitelist after the amendment to the act comes into effect.
Regarding the mandatory screening scheme, he said the industry’s performance showed improvement, with 68 films screened until yesterday, compared with 50 films in 2018, and box office receipts exceeding RM197 million, surpassing the 2022 achievement.
However, he said the ministry and Finas are considering the views of filmmakers regarding weaknesses in the scheme, including the issue of screening times, which is being reviewed for improvement.
