Malaysia

Malaysia Film Incentive Overview

The Malaysia Film Incentive offers a 30% cash rebate through the Film in Malaysia Incentive (FIMI) program. The Malaysia Film Incentive applies to feature films, TV series, animation, and documentaries that meet minimum spend thresholds and work with a local Malaysian company. Qualified costs for the Malaysia Film Incentive include crew wages, production services, and post-production expenses. Overseen by the National Film Development Corporation (FINAS), the Malaysia Film Incentive provides strong infrastructure and financial value to global filmmakers.

Hoodlum Introduction

Hoodlum Film Fixers is your expert partner for accessing the Malaysia Film Incentive. We ensure that your production meets all eligibility requirements for the Malaysia Film Incentive and support you in navigating the application process with FINAS. From documentation and budgeting to local hiring and rebate tracking, our team manages the Malaysia Film Incentive process end to end. With Hoodlum’s support, you’ll maximize your return from the Malaysia Film Incentive while minimizing stress and delays. Let us help you unlock the full potential of the Malaysia Film Incentive.

Incentives Offered

The Malaysia Film Rebate, also known as the Film in Malaysia Incentive (FIMI), offers a 30% cash rebate on Qualifying Malaysian Production Expenditure (QMPE). This incentive aims to boost creative content production in Malaysia, supporting the local industry and attracting foreign filmmakers.

Key Incentive Details:

• Rebate Percentage: 30% cash rebate on QMPE, with an additional 5% rebate available for productions that pass a Cultural Test, making it 35% in total for eligible projects.
• Eligible Productions: Feature films, TV series, feature animation, animation series, documentaries, and post-production activities.
• Minimum Spend Requirements:
  • Feature films: RM 5 million (approximately US$ 1.2 million)
  • TV series: RM 385,000 (approximately US$ 92,000) per hour
  • Post-production: RM 1 million
• Application Process: Submit applications to FINAS (National Film Development Corporation Malaysia) at least 2-3 months before production commencement.
• Additional Requirements:
  • At least 30% of the production crew must be Malaysian citizens or permanent residents.
  • Screen credit and CPA audit are required.
  • Productions must comply with Malaysian regulations and guidelines

Eligibility Criteria

To be eligible for the Malaysia Film Rebate (FIMI), productions must meet specific criteria:

Production Types

• Feature films
• TV series
• Feature animation
• Animation series
• Documentaries
• Post-production activities

Qualifying Criteria

• Minimum spend: Meet the minimum Qualifying Malaysian Production Expenditure (QMPE) requirements:
  • Feature films: RM 5 million (approximately US$ 1.2 million)
  • TV series: RM 385,000 (approximately US$ 92,000) per hour
  • Post-production: RM 1 million
• Malaysian content: Productions must have a significant connection to Malaysia, such as:
  • Malaysian storyline or setting
  • Malaysian characters or themes
  • Use of Malaysian locations or facilities
• Crew requirements: At least 30% of the production crew must be Malaysian citizens or permanent residents.
• Screen credit: Productions must give screen credit to FINAS (National Film Development Corporation Malaysia).
• Audit requirements: Productions must undergo a CPA audit to verify QMPE.

Application Process

• Submit applications to FINAS at least 2-3 months before production commencement.
• Ensure all required documentation is complete and accurate.

What is the minimum QPE per project

The minimum Qualifying Production Expenditure (QPE) per project varies depending on the country and project type. Here are some minimum QPE requirements for different countries:

Malaysia:

• Feature films: RM 5 million (approximately US$ 1.2 million)
• TV series: RM 385,000 (approximately US$ 92,000) per hour
• Post-production: RM 1 million

Mauritius:

• Feature films: USD 1,000,000 (with potential for up to 40% rebate on QPE)

Production categories accepted:

The Malaysia Film Rebate Scheme (FIMI) accepts the following categories of production for evaluation:

• Feature films
• TV series
• Feature animation
• Animation series
• Documentaries
• Post-production activities

These categories are eligible for a 30% cash rebate on Qualifying Malaysian Production Expenditure (QMPE), with an additional 5% rebate available for productions that pass a Cultural Test

Qualifying Production Expenditures (QPE)

Pre-Production Expenditures

• Script development: Costs associated with scriptwriting, editing, and revisions.
• Location scouting: Expenses related to finding and securing locations for filming.
• Casting: Costs of hiring actors, casting directors, and related expenses.
• Storyboarding: Expenses for creating visual representations of the production.
• Budgeting and scheduling: Costs of creating and managing production budgets and schedules.

Other QPE Categories

• Production expenditures: Costs of filming, equipment, crew, and talent.
• Post-production expenditures: Expenses for editing, visual effects, sound design, and music composition.
• Other expenditures: Costs of location permits, insurance, and other production-related expenses.

These expenditures must be incurred in Malaysia to qualify for the rebate.

Production Expenditures

Cast and Crew Salaries and Fees:

• Actor fees: Payments to actors for their services.
• Crew salaries: Wages and benefits for production crew members, such as directors, cinematographers, and production assistants.
• Talent fees: Payments to performers, voice actors, or other talent.

Professional Fees:

• Director’s fees: Payments to the director for their services.
• Producer’s fees: Payments to producers for their services.
• Screenwriter’s fees: Payments to screenwriters for script development.
• Other professional fees: Fees for services such as editing, cinematography, and production design.

Labour Costs:

• Salaries and wages: Payments to cast and crew members for their services.
• Benefits and allowances: Contributions to employee benefits, such as EPF (Employees Provident Fund) and SOCSO (Social Security Organization).
• Overtime pay: Additional payments for work exceeding standard hours.
• Fees for services: Payments to freelancers, consultants, or contractors.

Equipment rental fees:

• Camera equipment: Rental fees for cameras, lenses, and accessories.
• Lighting and grip equipment: Rental fees for lighting, grip, and electrical equipment.
• Sound equipment: Rental fees for sound recording equipment, such as microphones and mixers.
• Specialized equipment: Rental fees for specialized equipment, such as cranes, drones, or Steadicams.

Location fees:

• Site fees: Payments for using private or public locations for filming.
• Permits and licenses: Fees for obtaining necessary permits and licenses to film at specific locations.
• Location management: Costs associated with managing and coordinating location shoots.

Wardrobe and costume expenses:

• Costume design and creation: Costs of designing, creating, and purchasing costumes.
• Costume rental: Fees for renting costumes and accessories.
• Wardrobe maintenance: Costs of cleaning, altering, and maintaining costumes during production.

Set design and construction costs:

• Set design: Costs of designing and planning sets, including drafting and modeling.
• Set construction: Costs of building, modifying, and dressing sets.
• Set dressing: Costs of acquiring, renting, or creating props and set dressing elements.
• Set demolition: Costs of dismantling and removing sets.

Special effects and stunts expenses:

• Visual effects: Costs of creating CGI, graphics, and other visual effects.
• Special effects: Costs of creating pyrotechnics, smoke, fog, and other on-set effects.
• Stunt coordination: Fees for stunt coordinators, performers, and related expenses.
• Stunt equipment: Costs of renting or purchasing equipment for stunts.

Catering ,craft and services costs:

• Catering: Costs of food and beverages for cast and crew.
• Craft services: Costs of snacks, refreshments, and other amenities.
• Accommodation and transportation: Costs of lodging and transportation for cast and crew.

Specialized Services:

• Post-production services: Editing, visual effects, sound design, and color grading.
• Sound recording and mixing: Costs of recording, mixing, and editing sound.
• Animation and CGI: Costs of creating animation and computer-generated imagery.
• Drone services: Costs of drone operation and aerial footage.

Accommodation and transportation costs for cast and crew:

Accommodation Costs

• Hotel stays: Costs of lodging for cast and crew.
• Rental properties: Costs of renting properties for cast and crew.

Transportation Costs

• Airfare: Costs of flights for cast and crew.
• Ground transportation: Costs of transportation, such as car rentals, taxis, or shuttle services.

Travel:

• Airfare: Costs of flights for cast, crew, and equipment.
• Ground transportation: Costs of transportation, such as car rentals, taxis, or shuttle services.
• Accommodation: Costs of lodging for cast and crew while traveling for production.

Miscellaneous:

• Office expenses: Costs of office supplies, communication, and utilities.
• Insurance: Costs of production insurance, equipment insurance, and liability insurance.
• Permits and licenses: Fees for obtaining necessary permits and licenses.
• Marketing and promotion: Costs of promoting the production.

Post-Production Expenditures

• Editing: Costs of picture editing, sound editing, and visual effects editing.
• Visual effects: Costs of creating CGI, graphics, and other visual effects.
• Sound design: Costs of sound recording, mixing, and mastering.
• Color grading: Costs of color correction and grading.
• Music composition: Costs of composing and licensing music.
• Post-production software and equipment: Costs of renting or purchasing software and equipment for post-production.

Non-Qualifying production Expenditures (NQE)

• Expenditures incurred outside Malaysia: Costs incurred outside of Malaysia are not eligible.
• Deferments and overheads: Deferred payments and overhead costs are not eligible.
• Publicity and marketing: Costs of marketing and promoting the production are not eligible.
• Distribution costs: Costs of distributing the production are not eligible.
• Expenditures not directly related to production: Costs not directly related to the production are not eligible.

Application process

The application process for the Malaysia Film Rebate Scheme typically involves the following steps:

Pre-Production

• Eligibility check: Determine if your production meets the scheme’s eligibility criteria.
• Application submission: Submit an application to the Malaysian Film Development Corporation (FINAS) or relevant authority.

Application Requirements

• Production details: Provide details about the production, including title, synopsis, and budget.
• Script and treatment: Submit a script and treatment for the production.
• Shooting schedule: Provide a shooting schedule and location details.
• Budget breakdown: Submit a detailed budget breakdown.

Application Review

• Review and evaluation: FINAS or relevant authority reviews and evaluates the application.
• Approval: If approved, the production receives a rebate approval letter.

Production and Post-Production

• Production commencement: Commence production and ensure compliance with scheme requirements.
• Expenditure tracking: Track and document all expenditures related to the production.

Rebate Claim

• Rebate application: Submit a rebate application with supporting documents, including expenditure receipts and invoices.
• Audit and verification: FINAS or relevant authority may conduct an audit to verify expenditures.

Rebate Disbursement

• Rebate approval: If the rebate application is approved, the production receives the rebate amount.
• Disbursement: The rebate amount is disbursed according to the scheme’s terms and conditions.

Ready to maximize your film incentives?

Partner with Hoodlum Film Fixers to navigate rebate programs, streamline compliance, and connect with trusted local partners. Let us handle the logistics so you can focus on creating. Contact us today to get started.