KUALA LUMPUR (Oct 10): The full exemption from entertainment duty for local film tickets in the Federal Territories will allow producers to earn higher returns from ticket sales.
National Film Development Corporation Malaysia (Finas) chief executive officer Datuk Azmir Saifuddin Mutalib said the measure, announced under Budget 2027, has the potential to stimulate growth in the local film industry while strengthening the country’s creative economy.
He said the exemption would enable producers to retain a greater share of ticket revenue, helping sustain local film production.
“Alhamdulillah, Finas welcomes this announcement as positive news for the local film industry, particularly in efforts to stimulate activity and strengthen the industry’s economy, which we now refer to as the orange economy led by Minister of Communications Datuk Seri Fahmi Fadzil,” he said in a statement Saturday.
Azmir said the agency hoped other state governments would also consider exempting local films from entertainment duty, while Finas and cinema operators were also planning discussions with state governments to explain how the film industry contributes not only to the creative sector, but also supports other businesses through cinema-goers’ spending.
“We know that some films, such as Blood Brothers and Polis Evo, have recorded takings of up to RM50 million, but a portion of those takings also goes towards entertainment duty. With a full exemption, producers can enjoy greater benefits,” he said.
In another development, Azmir welcomed the government’s efforts to strengthen the local animation ecosystem, with a target of creating 20 new intellectual properties (IPs) and commercialising local characters internationally.
He also said that Finas submitted a proposal to develop the animation ecosystem, expand the industry’s potential, and strengthen Malaysia’s position as an animation leader in Southeast Asia.
“We already have Upin & Ipin, BoBoiBoy and Mechamato. InsyaAllah , we want to create more IPs capable of achieving similar success.
“Animation generates income not only through film and television, but also offers significant potential through the sale of branded products, or merchandising. Talent development, training and the use of technology are also important to ensure that the industry remains competitive,” he added.
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