Kuala lumpur: The National Film Development Corporation Malaysia (FINAS) is nearing the completion of a new Compulsory Screening Scheme (Skim Wajib Tayang) 3.0 aimed at addressing the screening requirements for both commercial and festival films. FINAS CEO Datuk Azmir Saifuddin Mutalib revealed that the draft policy is in its final stages and will soon be presented to Communications Minister Datuk Fahmi Fadzil for approval. The proposed scheme seeks to prevent negative impacts on the business operations of cinema operators.
According to BERNAMA News Agency, discussions have been conducted with cinema operators and the Malaysian Film Producers Association (PFM) to ensure the new policy aligns with the regulations under the FINAS Act, which is expected to be introduced this year. This was disclosed by Azmir Saifuddin after a meeting chaired by Fahmi with Malaysian cinema CEOs at Menara Maxis. The meeting also saw the participation of Deputy Communications Minister Teo Nie Ching, FINAS Chairman Datuk Hans Isaac, and Film Directors Association of Malaysia (FDAM) Chairman Datuk Afdlin Shauki.
Azmir Saifuddin commented on the cinema industry's performance, highlighting a noticeable disparity between local films' box office earnings and general cinema attendance. Despite the success of several local films achieving box office collections over RM10 million this year, the cinema sector faces challenges in recovering from the COVID-19 pandemic. Some cinema operators continue to struggle with loan repayments necessary for sustaining their businesses.
Data from cinema operators indicates a 16 percent drop in viewership in the first five months of this year compared to the same period last year. Contributing factors include fierce competition from digital streaming platforms and prevailing economic pressures. Furthermore, the cost of technology investment has doubled, with expenses reaching RM3 million to construct a new cinema hall equipped with advanced sound systems and high-definition screens, compared to RM1.5 million previously.
FINAS is intensifying efforts to compile comprehensive data on viewership trends and the socio-economic impact of cinema closures on the supply chain and employment opportunities. The closure of cinemas affects not only cinema employees but also other elements of the supply chain, such as popcorn suppliers. Evaluating the industry's impact on job creation is a priority for FINAS.
The cinema sector contributes significantly to economic growth, with cinemas serving as anchors for additional consumer spending in shopping malls. Azmir Saifuddin stated that the gathered economic impact data will be analyzed and submitted to the Ministry of Finance as proposals for incentives or assistance programs prior to the upcoming budget presentation.