Local film duty exemption to raise producers’ ticket returns
The Budget 2027 measure covers the Federal Territories, while Finas hopes state governments will consider similar exemptions.
Producers will keep more revenue from local film ticket sales under the Budget 2027 entertainment duty exemption in the Federal Territories, according to National Film Development Corporation Malaysia (Finas) chief executive officer Datuk Azmir Saifuddin Mutalib.
Azmir said removing the duty entirely would help sustain local productions and could support growth in Malaysia’s film industry and creative economy. He cited Blood Brothers and Polis Evo as films with takings of up to RM50 million, noting that entertainment duty absorbs part of that revenue.
Finas hopes state governments will consider granting exemptions too. The agency and cinema operators plan to discuss the industry’s economic contribution with state governments, including spending by cinema-goers that benefits businesses beyond the creative sector.
Separately, Azmir welcomed government efforts to develop local animation, including a target to create 20 new intellectual properties (IPs) and commercialise Malaysian characters internationally. He said Finas had submitted a proposal aimed at developing the animation ecosystem and strengthening Malaysia’s position in Southeast Asia.
Citing Upin & Ipin, BoBoiBoy and Mechamato, he said the agency wanted more IPs to achieve similar success. Besides film and television income, he highlighted merchandising opportunities and the importance of training, talent development and technology to maintain competitiveness.
