Kuala Lampur:The National Film Development Corporation Malaysia (FINAS) is set to investigate the potential for introducing a residual payment or revenue-sharing mechanism for audiovisual works, the Communications Ministry has announced.

According to BERNAMA News Agency, this initiative aims to provide actors with a fairer distribution of economic benefits while maintaining the competitiveness, commercial viability, and sustainability of Malaysia's creative industry. The study will examine legal, industry, and market aspects to ensure the mechanism aligns with the country's creative industry ecosystem.

From a legal standpoint, the study will assess whether the mechanism should be established through amendments to current laws, industry guidelines, or standard contracts. Industry-wise, it will evaluate the creative industry's structure and prevailing business models. Market considerations will include the practices of international streaming platforms and distributors.

The ministry's statement was in response to a query from Kalam Salan (Sabak Bernam) regarding the government's plans to introduce a residual payment or rerun royalty mechanism for Malaysian actors when their works are commercially exploited through various channels, including television, cinemas, streaming platforms, and international markets.

The study will involve collaboration between FINAS, the Domestic Trade and Cost of Living Ministry (KPDN), and the Intellectual Property Corporation of Malaysia (MyIPO). Stakeholder input will also be sought, including feedback from the Malaysian Film Artists Association Federation (GAFEMA), actors' associations, and producers' associations, to ensure that the developed mechanism considers all parties' interests.

Currently, Malaysia lacks a specific mechanism for residual payments to actors for audiovisual works. Actors' remuneration is typically determined by agreements between the actors and producers or rights holders.