Iskandar Malaysia Studios assets still belong to Khazanah, Dewan Rakyat told

KUALA LUMPUR: The assets at Iskandar Malaysia Studios still belong to Khazanah Nasional Berhad, says Deputy Finance Minister Steven Sim.

He said that Khazanah did not sell the assets at the film and television production complex, but only sold shares in the company that operates the studio.

He added that the 19.8-hectare (49-acre) studio in Iskandar Puteri, Johor, is still owned by Khazanah through its special purpose vehicle (SPV), Tanjung Bidara Ventures Sdn Bhd.

Sim said that Khazanah made the decision to sell the shares in the operating company - Iskandar Malaysia Studios Sdn Bhd (IMS) - in order to find a new partner that can better manage the operations of the studio.

"IMS is facing financial sustainability challenges, exacerbated by the impact of the Covid-19 pandemic on the film industry,” he said.

Sim added that if Khazanah were to remain a shareholder in IMS, it would have to continue providing financial support to it and would sustain an estimated loss of up to RM14mil per year.

He said this in reply to a question from Datuk Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar) during Question Time.

Iskandar had asked the Finance Ministry to state the rationale for the sale of the studio.

Sim said that following the sale of ownership in the studio's operating company, Khazanah had selected Studio Management Services Sdn Bhd (SMS) as the new partner after going through the Request for Proposal (RFP) process.

Studio Management Services (SMS) is a consortium led by the local management team of IMS, its regional partner GHY Culture & Media Holding Co. Limited and its subsidiary, GHY Culture & Media (Malaysia) Sdn Bhd (GHY) - a media group in the Asian entertainment industry that is listed on the Singapore Stock Exchange.

"At present, the Share Purchase Agreement has been signed by both parties and is awaiting the fulfillment of Conditions Precedent," said Sim.

As a result of the transaction, he said that Khazanah will receive RM32mil from the sale of shares and rental payments worth RM26mil up to 2036.

"Studio Management Services is expected to generate revenue of RM800mil over a period of five years through new content productions in the next five years,” added Sim.

He then said that because of this, more job opportunities can be provided within the studio ecosystem and have a positive impact on the local economy.

Iskandar Malaysia Studios Sdn Bhd was formerly called Pinewood Iskandar Malaysia Studios (PIMS) after the Pinewood Group entered into a partnership with the studio complex.