Finas finalising new compulsory screening scheme for Malaysian cinemas

Malaysia's Cinema Landscape Set for Major Overhaul: Finas Finalizes New Screening Mandate

A significant shift is on the horizon for Malaysian cinemas, as the National Film Development Corporation Malaysia (Finas) prepares to launch a revamped compulsory screening policy. This strategic move aims to foster a more balanced ecosystem for both mainstream commercial releases and niche festival films, a crucial step in navigating the evolving demands of the industry.

Balancing the Screen: A New Era for Film Distribution

The proposed Compulsory Screening Scheme 3.0 is nearing its final stages, with Finas CEO Datuk Azmir Saifuddin Mutalib confirming that the draft policy is undergoing rigorous review. The ultimate goal is to present a refined proposal to Communications Minister Datuk Fahmi Fadzil for official approval.

This initiative is designed to proactively address potential challenges faced by cinema operators, ensuring their businesses can thrive amidst changing market dynamics. Discussions have been extensive, involving key stakeholders including representatives from cinema operators and the Malaysian Film Producers Association (PFM).

Datuk Azmir Saifuddin emphasized that the new policy will be fully integrated with the existing Finas Act, with legislative updates anticipated within the year. This comprehensive approach underscores Finas' commitment to a sustainable and vibrant film industry.

The Post-Pandemic Reality: Challenges and Opportunities

The Malaysian film sector, while celebrating notable successes with several local productions exceeding RM10 million at the box office this year, continues to grapple with the lingering effects of the pandemic. Cinema operators, in particular, are facing ongoing financial pressures, with some still working to manage loans taken out to keep their businesses afloat.

Data reveals a concerning trend: a decline in overall cinema viewership. In the first five months of the year, attendance dropped by approximately 16% compared to the same period in the previous year. This downturn is attributed to a confluence of factors, including intense competition from digital streaming services and prevailing economic uncertainties.

The financial burden on operators is further exacerbated by escalating technology investment costs. Establishing a new cinema hall, equipped with advanced sound systems like Atmos and high-definition screens, now demands an investment of around RM3 million, a significant increase from the previous RM1.5 million. This reflects the growing need to meet audience expectations for premium viewing experiences.

Finas' Data-Driven Approach to Industry Support

In response to these challenges, Finas is intensifying its efforts to gather comprehensive data. This includes detailed analysis of viewership trends and a thorough assessment of the socio-economic impact of cinema closures. The aim is to understand the ripple effects across the entire supply chain and on employment opportunities.

Datuk Azmir Saifuddin highlighted the far-reaching consequences of cinema closures. "When a cinema closes down, the ripple effect is felt not only by the cinema workers but also by the supply chain, such as popcorn suppliers," he explained. "We want to evaluate how this industry impacts job creation."

The multiplier effect of the cinema sector on economic growth is substantial. Cinemas often serve as anchors within shopping malls, drawing in patrons who then engage in other activities like dining and shopping. This interconnectedness underscores the vital role cinemas play in the broader retail and entertainment ecosystem.

Informing Policy with Economic Insights

The economic impact data being meticulously collected will undergo rigorous analysis. These insights will then be presented to the Ministry of Finance (MOF) as well-to-date proposals for potential incentives or assistance programs. This proactive approach aims to inform budgetary decisions and ensure targeted support for the industry ahead of the upcoming budget presentation.

The efforts by Finas, under the guidance of Datuk Azmir Saifuddin and with the support of figures like Communications Minister Datuk Fahmi Fadzil, signal a determined push to revitalize the Malaysian cinema industry. The success of the new compulsory screening scheme, coupled with data-driven policy recommendations, could pave the way for a more resilient and prosperous future for film exhibition in the country.