Accra:The full exemption from entertainment duty for local film tickets in the Federal Territories is expected to allow Malaysian producers to earn higher returns from ticket sales.

According to BERNAMA News Agency, Datuk Azmir Saifuddin Mutalib, CEO of the National Film Development Corporation Malaysia (FINAS), stated that this measure, announced under Budget 2027, could stimulate growth in the local film industry and strengthen the nation's creative economy. The exemption will enable producers to retain more ticket revenue, supporting sustained local film production.

Azmir expressed that FINAS views this announcement as a positive development for the local film industry, emphasizing efforts to invigorate the industry and strengthen what is referred to as the orange economy. He also mentioned that FINAS hopes other state governments will consider similar exemptions and that discussions with state officials are planned to highlight the film industry's broader economic contributions.

He noted that some films, like "Blood Brothers" and "Polis Evo," have achieved box office takings up to RM50 million, with a portion previously allocated to entertainment duty. With the exemption, producers can now benefit more from their revenues.

In a related development, Azmir endorsed the government's commitment to enhancing the local animation sector, aiming to create 20 new intellectual properties and commercialize local characters on an international scale. FINAS has submitted proposals to expand the animation ecosystem and strengthen Malaysia's position as a leader in Southeast Asia's animation industry.

He highlighted existing successes such as "Upin & Ipin," "BoBoiBoy," and "Mechamato," and expressed the desire to develop more intellectual properties with similar success. Animation presents income opportunities not only through films and TV but also through merchandising. Talent development, training, and technology usage are crucial for maintaining the industry's competitiveness.