KUALA LUMPUR, Aug 24 — The National Film Development Corporation Malaysia (Finas) is moving to convene industry players to address alleged distribution monopolies and ensure fair competition within the local cinematic market.
Chief executive officer Datuk Azmir Saifuddin Mutalib acknowledged growing anxiety over the concentration of control in film distribution, specifically where a single entity dominates production, funding, and distribution.
“If possible, we don't want any cartel. We want fair trade and opportunities for all industry players,” Azmir told reporters at the new Menara Finas headquarters in Damansara Damai.
While Finas has yet to receive official complaints, Azmir noted that the agency is keenly aware of the frustrations voiced by smaller players.
To address this, Finas will bring together distributors and producers to dissect the bottlenecks hindering fair market access.
A key point of contention is the lack of transparency regarding the release of international blockbusters. Azmir argued that advance notice on major Hollywood productions is essential, as sudden releases often blindside local producers and disrupt their scheduling.
“If overseas films come in without being informed, it can affect local films,” Azmir said.
Azmir cited the Chinese New Year window, where nearly 15 films fought for cinema screens within a mere two weeks, severely squeezing the visibility of local content.
He clarified that Finas is not aiming to stifle foreign cinema but wants local Malay, Chinese, and Tamil-language productions to have a genuine opportunity to reach audiences.
Along with these distribution talks, Finas is also in the final stages of a comprehensive regulatory overhaul. The updated framework, which will undergo consultations with ministries and agencies before reaching the Cabinet, is expected to take two years to fully implement.
The revised guidelines will modernise the industry's legal landscape, covering emerging technologies such as AI-generated content and studio-based productions. In a move to protect workers, the framework will mandate formal contracts covering working arrangements and payments for production crews.
Compliance will be strictly enforced, with penalties for regulatory breaches set to increase. Companies operating without a valid licence could face fines of up to RM250,000.
Azmir noted that the review is long overdue, as the last major regulatory update occurred in 2013. Finas is currently tracking 52 separate initiatives designed to modernize the industry and meet the evolving needs of filmmakers.
