Government Expands Support for Film Industry, Introduces Free Mediation for Small Contract Disputes
KUALA LUMPUR, April 10 – The government is strengthening its support for Malaysia’s film industry by introducing broader measures, including financial recovery assistance for distressed artists and free mediation services for smaller contract disputes.
Communications Minister Datuk Fahmi Fadzil said the initiative involves collaboration between the National Film Development Corporation (Finas) and the Department of Insolvency to assist industry players facing financial difficulties.
He acknowledged that filmmaking is inherently high-risk, with some projects failing to generate expected returns, leaving individuals and companies vulnerable.
“We recognise the risks involved in this industry. Some may face financial setbacks or even insolvency, and they need structured support to recover,” he said after attending the Seniman Symposium 2026.
Holistic Support Beyond Funding
Fahmi emphasised that government assistance is not limited to funding production but also includes mechanisms to support financial recovery.
This approach aims to create a more resilient industry ecosystem, where setbacks do not permanently hinder participation in the creative sector.
He noted that such measures reflect a broader understanding of the uncertainties within the creative economy.
Free Mediation to Improve Access to Justice
Meanwhile, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said announced that free mediation services will be made available for contract disputes valued below RM250,000.
She said the initiative is designed to provide a faster and more cost-effective alternative to court proceedings, which are often expensive and time-consuming.
“Many contracts, especially in the creative sector, fall within this range. We want to ensure that individuals and businesses have access to fair dispute resolution without financial barriers,” she said.
Eligible cases will be referred to mediation centres under the Asian International Arbitration Centre (AIAC), with costs fully covered.
Support for Freelancers and Small Players
Azalina highlighted that the initiative will benefit not only companies but also freelancers and part-time workers, who frequently face payment disputes but lack the resources to pursue legal action.
By providing free mediation, the government aims to bridge this gap and ensure that smaller players are not disadvantaged.
Implementation Expected in May
The mediation scheme is expected to be rolled out as early as the first week of May and will apply nationwide to all contracts within the specified threshold.
Azalina said the move is part of a broader effort to enhance access to justice and streamline dispute resolution processes.
Together, the financial recovery support and legal access initiatives signal a more comprehensive policy approach to sustaining Malaysia’s creative industry while protecting smaller economic participants.
-wilayah.com.my
