AceShowbiz - At the opening of Hong Kong’s Filmart, Malaysia reaffirmed its commitment to supporting both local and international film productions with the renewal of its flagship incentive program. The National Film Development Corporation (FINAS) announced that the Film in Malaysia Incentive (FIMI), a cash rebate scheme, has been extended for an additional five years with a renewed budget of RM300 million (approximately $76 million).

This incentive program offers productions a 30 percent rebate on qualifying local production expenditures, with an extra 5 percent available contingent upon passing a cultural test. First launched in 2013, the program has become a cornerstone of Malaysia’s strategy to attract filmmakers and position the country as a competitive regional hub for production and post-production work.

FINAS also revealed another RM300 million ($76 million) allocation dedicated to audiovisual infrastructure investments over the same five-year period. This dual approach aims to not only incentivize production but also enhance the technical capabilities and facilities available within Malaysia.

During a presentation at Filmart, FINAS CEO Datuk Azmir Saifuddin Mutalib highlighted the incentive’s track record, noting that over 13 years, the program has paid out RM580 million (about $147 million) in rebates to 243 projects. This statistic underscores the government's confidence in the program as a vital tool to expand Malaysia’s footprint in the global film industry.

Several high-profile international productions have benefited from the rebate, including Crazy Rich Asians, The Mandalorian, 6 Underground, and Blackhat. The agency also cited the BBC’s recent adaptation of Lord of the Flies as a beneficiary of the Malaysian rebate, showcasing the country’s appeal to diverse production scales and genres.

Domestic film industry progress was also a focus during the Filmart event. FINAS reported that Malaysia’s local box office revenue reached a record RM244 million (about $62 million) in 2025, a marked increase from the previous year and more than double the 2023 figures. This growth indicates rising audience engagement and a strengthening domestic market alongside international collaborations.

In regulatory developments, FINAS recently secured an amendment to the FINAS Act that expands the legal definition of “film” to cover television content, documentaries, animation, and AI-generated works. The amendment further introduces enhanced protections for cast and crew, including standardized working contracts, mandatory insurance, and regulated employment permits for child actors, underscoring Malaysia’s commitment to supporting its creative workforce.

The Filmart showcase concluded with the signing of an international distribution agreement for the Malaysian action film Konspirasi. Elepfilm Entertainment partnered with Hong Kong-based Reliance Media Entertainment, marking a significant step toward increasing the global reach of Malaysian cinema.

Overall, Malaysia’s renewed financial commitment and strategic initiatives demonstrate its ambition to solidify its position as a key production and post-production hub in the Asia-Pacific region, attracting international projects while nurturing local industry growth.