Finas moves to combat ‘cartels’ and ensure fair competition in local film market

The National Film Development Corporation Malaysia (Finas) is taking action to combat alleged distribution monopolies and ensure fair competition within the local film industry. Finas CEO Datuk Azmir Saifuddin Mutalib expressed concern over the concentration of control in film distribution, emphasizing the need for transparency and equal opportunities for all industry players. While no official complaints have been received yet, Azmir acknowledged the frustrations expressed by smaller players in the market.

Finas plans to convene distributors and producers to discuss the bottlenecks preventing fair market access. A major issue is the lack of transparency surrounding the release of international blockbusters. Azmir stressed that advance notice of major Hollywood productions is crucial, as sudden releases can disrupt local production schedules and impact the visibility of local films.

The Chinese New Year window, where nearly 15 films vied for cinema screens within two weeks, highlighted the potential consequences of such sudden releases, as it severely limited the visibility of local content.

While Finas aims to foster a level playing field, the corporation is not opposed to foreign cinema. Instead, it wants local Malay, Chinese, and Tamil-language productions to have genuine opportunities to reach audiences. Finas is currently in the final stages of a comprehensive regulatory overhaul, which will undergo consultations before being presented to the Cabinet.

The updated framework, expected to be fully implemented within two years, will modernize the industry's legal landscape to accommodate emerging technologies such as AI-generated content and studio-based productions.

To protect workers, the revised guidelines will mandate formal contracts covering working arrangements and payments for production crews. Non-compliance will be strictly enforced, with penalties for regulatory breaches reaching up to RM250,000 for companies operating without a valid license. Finas has identified 52 separate initiatives aimed at modernizing the industry and meeting the evolving needs of filmmakers, addressing the growing concerns over distribution monopolies and ensuring fair competition in the local film market.