General : Orange Economy Has Potential To Drive Growth Of Creative Economy Sector - Fahmi

Communications Minister Datuk Seri Fahmi Fadzil has expressed confidence in the creative economy's potential to fuel Malaysia's economic growth. With a contribution of about 6.8 per cent to the Gross Domestic Product (GDP), the creative sector is ripe for expansion, especially with the advancement of digital technology. This technology has enabled local creative content, such as podcasts, music, animation, video games, and social media content, to reach global audiences without geographical limitations.

Fahmi highlighted how a podcast, for instance, can be viewed by individuals in various parts of the world, including California, New Delhi, and Vladivostok. By exporting local content and intellectual property (IP) globally, the creative sector can generate new revenue streams for industry players. In response to this potential, the government has established the Orange Economy Council to bolster the creative industry ecosystem, which includes sectors like film, music, video games, e-sports, and animation.

Although content creators are part of the creative sector, their business models are diverse and require individual assessments for tailored assistance. These models include income generation through affiliate marketing, product sales, streaming, view counts, advertising, sponsorships, and brand collaborations. Digital platforms like TikTok, TikTok Shop, Shopee, Facebook Marketplace, and Lazada also contribute to digital economic growth by offering support and training in sales, live streaming, and revenue generation.

However, key issues such as copyright protection and the increasing use of artificial intelligence (AI) necessitate government attention, particularly regarding the use of content creators' works and identities. Fahmi emphasized the need for the government to safeguard the rights of content creators, such as Faizal Tahir, when their music is used or altered through AI-generated tools like Suno.

For funding, there is currently no specific fund for content creators as the ministry's financial support is concentrated on sectors like film and music under established frameworks such as the National Film Policy and National Broadcasting Policy. Nevertheless, the Communications Ministry and the Malaysian Communications and Multimedia Commission (MCMC) continue to aid eligible mainstream and online media outlets through the Media Innovation Fund, with an allocated budget of RM30 million per year.

Fahmi also encouraged creative industry players and content creators to utilize tax relief facilities provided by the Inland Revenue Board, including deductions for business equipment purchases. Despite no official meeting with a Malaysian content creators' association, the government remains receptive to understanding their needs and challenges.