Finas finalises Compulsory Screening Scheme 3.0 to support Malaysian cinemas

The National Film Development Corporation Malaysia (Finas) is in the final stages of drafting the Compulsory Screening Scheme (Skim Wajib Tayang) 3.0. The scheme aims to balance screening needs between commercial films and festival productions, helping cinemas survive ongoing challenges ^{[1, 2]}.

The draft policy will be submitted this year to Communications Minister Datuk Fahmi Fadzil for approval. Finas held extensive discussions with cinema operators and the Malaysian Film Producers Association (PFM) in developing the scheme.

"We have held several series of discussions with cinema operators and the Malaysian Film Producers Association (PFM). This new policy will align with the regulations under the Finas Act, which is expected to be introduced this year," said Datuk Azmir Saifuddin Mutalib of Finas ^[1].

Malaysian cinemas face post-Covid survival difficulties. Operators reported a 16% decline in audience numbers in the first five months of 2026 compared to the same period last year. Datuk Azmir noted the drop is due to strong competition from digital streaming platforms and current economic pressures ^{[1, 2]}.

Local films achieved a bright spot with five to six titles surpassing RM10 million in box office takings in 2026, reflecting strong domestic production despite the challenges ^{[1, 2]}.

Technology costs have also soared, with the expense of building a single new cinema hall doubling from RM1.5 million to RM3 million. The investment includes advanced Atmos sound and HD screening facilities, raising financial pressure on operators ^{[1, 2]}.

Finas is intensifying efforts to collect data on viewer trends and the socio-economic impact of potential cinema closures on supply chains and employment in the sector.

A meeting on May 21, 2026 at Menara Maxis, chaired by Communications Minister Datuk Fahmi Fadzil, gathered cinema CEOs, Finas officials, and industry groups to discuss challenges and the screening scheme. Attendees included Deputy Communications Minister Teo Nie Ching, Finas Chairman Datuk Hans Isaac, and Film Directors Association Chairman Datuk Afdlin Shauki ^{[1, 2]}.

Finas CEO confirmed on May 22 the scheme is nearing finalisation and will be presented to the Communications Minister for approval to launch within the year ^[2].