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

KUALA LUMPUR, Aug 24 — National Film Development Corporation Malaysia (Finas) is taking steps to bring industry stakeholders together to tackle concerns about distribution monopolies and promote fair competition in the local film scene. Chief executive officer Datuk Azmir Saifuddin Mutalib expressed concern over the concentration of power in film distribution, where one entity holds sway over production, funding, and distribution.

"We don't want a cartel, we want fair trade and opportunities for everyone," Azmir told reporters at the new Menara Finas headquarters in Damansara Damai. Although Finas has not yet received any official complaints, the agency is well aware of the frustrations faced by smaller players. To address this, Finas plans to convene distributors and producers to examine the obstacles preventing equal access to the market.

A major point of contention is the limited transparency surrounding the release of international blockbusters. Azmir stressed the importance of advance notice for major Hollywood productions, as sudden releases can catch local producers off guard and disrupt their schedules. "If overseas films come in unexpectedly, it can impact local films," Azmir said.

Azmir cited the Chinese New Year window, where almost 15 films competed for cinema screens within a span of two weeks, significantly limiting the exposure of local content. He emphasized that Finas is not opposed to foreign cinema but wants Malay, Chinese, and Tamil-language productions to have a genuine chance to reach audiences.

Along with distribution discussions, Finas is in the final stages of a major regulatory overhaul. The updated framework, set to go through consultations with ministries and agencies before Cabinet approval, will take about two years to fully implement. The revised guidelines will modernize the industry's legal framework, covering new technologies like AI-generated content and studio-based productions.

To protect workers, the framework will require formal contracts outlining working arrangements and payments for production crews. Non-compliance will face strict penalties, with companies operating without a valid license facing fines of up to RM250,000. Azmir noted that the review is long overdue, as the last major regulatory update took place in 2013.

Finas is currently tracking 52 separate initiatives aimed at modernizing the industry and meeting the evolving needs of filmmakers.