Communications Minister Fahmi Fadzil says FINAS can form companies for four specific purposes, excluding film production and distribution, to manage assets and support industry growth.
KUALA LUMPUR: The amended National Film Development Corporation Malaysia (FINAS) Act 1981 empowers the corporation to establish companies for four specific purposes.
Communications Minister Datuk Fahmi Fadzil said these purposes are managing assets, infrastructure, training and research in the film industry.
He stressed the companies will not be involved in film production or distribution.
“The company in question is solely for these four purposes, not for producing or distributing films, and will not compete with industry players,” he said.
He made the remarks when winding up the debate on the FINAS (Amendment) Bill 2025 in the Dewan Negara.
The bill was later passed with a majority vote. Fahmi said the allocation is detailed in Sections 61F, 62B, 62C and 62H of the act.
He explained the need arose after FINAS acquired new infrastructure, including high-end post-production facilities.
These assets require maintenance costs and professional management.
“Therefore, if FINAS is given the authority to establish a company, its purpose is to safeguard assets for training and carrying out work in the field of filmmaking,” he added.
Fahmi said the amendment process took time as it involved improvements to FINAS’s internal structure.
This included appointing legal advisers and involving young lawyers in drafting the changes.
He emphasised the amendment will give confidence to industry players to collaborate with FINAS.
The government hopes it will help the corporation support the industry’s global growth.
On outdated definitions in the act, Fahmi said some terms are retained for archival purposes.
This aligns with the functions of the national film archive, now part of FINAS.
Regarding film censorship, he noted the Film Censorship Board (LPF) is under the Home Ministry.
The government is open to discussions between FINAS and LPF for further clarification.
He said feedback from filmmakers and the use of technology like AI in evaluation will be considered.
Fahmi also confirmed the government will not impose licensing on influencers or podcast production.
Details on filmmaking activities requiring licensing will be clarified through regulations post-amendment.
On the mandatory screening scheme, he reported improved industry performance.
As of December 17, 68 films were screened in 2025, compared to 50 in 2018.
Box office receipts have exceeded RM197 million, surpassing the 2022 achievement.
Fahmi acknowledged filmmakers’ concerns about weaknesses in the scheme’s implementation.
The ministry and FINAS are reviewing issues like screening times for improvements.
