FINAS Moves Against Film Distribution Cartels as Malaysia’s Cinema Industry Faces Competition Concerns

The FINAS film distribution cartel issue has come under renewed scrutiny after the National Film Development Corporation Malaysia (FINAS) announced plans to call cinema exhibitors, distributors and film producers to examine allegations of market dominance in the local film industry.

FINAS Chief Executive Officer Datuk Azmir Saifuddin Mutalib said the agency has not received an official complaint but is proactively gathering information to understand the concerns raised by industry players. 

FINAS to Bring Industry Players Together

FINAS plans to engage different parts of the film industry, including cinemas, distributors and producers, as part of its investigation. The agency wants to determine whether market concentration is creating unfair barriers for certain filmmakers and affecting their ability to secure cinema screenings. Azmir said FINAS does not want cartel activity or monopolistic practices to restrict opportunities for industry participants. 

Concerns Over Cinema Screen Access

One of the key concerns is how films compete for limited cinema screens, particularly during periods when many major releases are scheduled.

FINAS has also raised concerns about transparency surrounding the release of major international films. Sudden releases of overseas blockbusters can affect the scheduling and commercial prospects of Malaysian productions. During the Chinese New Year period, nearly 15 films reportedly competed for cinema screens within about two weeks, highlighting the pressure on available screening space. 

Why Screen Allocation Matters

For local filmmakers, securing sufficient screenings can directly affect a film’s ability to reach audiences and generate box-office revenue. FINAS says its objective is not to restrict foreign films but to ensure Malay, Chinese and Tamil-language productions have fair opportunities to reach Malaysian audiences. 

Local Films Are Already Showing Strong Demand

The investigation comes at a time when Malaysian films are performing strongly at the box office. FINAS reported that local films recorded 7.55 million cinema admissions from January to July 2026, exceeding the 6.94 million admissions recorded for Hollywood films during the same period. Five Malaysian films also surpassed RM10 million in box-office collections. 

The figures indicate strong audience interest in domestic productions, making fair market access an increasingly important issue for the industry.

FINAS Plans Wider Regulatory Reform

The cartel investigation is taking place alongside a broader review of Malaysia’s film regulations.

FINAS is working on an updated regulatory framework covering developments such as AI-generated content and studio-based productions. The proposed changes will also introduce formal requirements covering production crew working arrangements and payments. 

Companies operating without valid licences could face fines of up to RM250,000 under the proposed regulatory framework. 

Key Facts

FINAS will engage cinema exhibitors, distributors and producers over alleged cartel activity.

FINAS says it has not received an official complaint so far. 

The investigation focuses on alleged market dominance and competition concerns.

Local films recorded 7.55 million admissions from January to July 2026. 

Five local films exceeded RM10 million in box-office collections during that period.

FINAS is also reviewing regulations covering new technologies and industry practices.

What People Are Asking

Is there a confirmed film cartel in Malaysia?

No. FINAS is investigating allegations and gathering information, but it has stated that no official complaint has been received so far. 

Why is FINAS investigating cinema distribution?

The agency wants to understand whether market concentration or alleged monopolistic practices are limiting fair opportunities for film producers and distributors.

Are Malaysian films performing well in 2026?

Yes. FINAS reported 7.55 million admissions for local films between January and July, ahead of Hollywood films during the same period. 

Will FINAS stop foreign films from entering Malaysian cinemas?

FINAS has indicated that its objective is not to restrict foreign cinema, but to ensure local productions receive fair opportunities to compete for audiences and screening space.