KUALA LUMPUR: A Bill to amend the Perbadanan Kemajuan Filem Nasional Malaysia Act 1981 was tabled for its first reading by Deputy Communications Minister Teo Nie Ching.
The Bill proposes structural, regulatory and enforcement changes including removing the Deputy Chairman post and expanding Finas’ administrative and operational powers.
It also strengthens governance and compliance requirements across the film industry.
“The second reading of the Bill will be done during the current Dewan Rakyat sitting,” said Teo on Thursday (November 27).
Penalties for offences under Part V will rise with fines increasing from RM50,000 to RM250,000 and the maximum jail term from two years to five years.
Enforcement reach is widened with a new presumption that a credited producer or financier is deemed involved in production unless proven otherwise.
Finas’ powers are broadened to allow it to establish companies under the Companies Act 2016 with approval from the Communications Minister and the Finance Minister.
It will be empowered to issue guidelines, demand documents and information, and mandate industry training.
It may also carry out other activities connected to its statutory functions.
Membership rules are updated by abolishing the Deputy Chairman post and revising board composition to between two and six members.
A new provision allows the Minister to appoint a Temporary Chairman when the Chairman’s post is vacant, or the Chairman is absent or unable to perform duties.
Conflict of interest provisions are tightened with expanded definitions of family member and associate.
These now cover spouses, parents in law, stepchildren, siblings of spouses, business partners, trustees and corporations with significant interests.
Members must declare relevant shareholdings or interests acquired through family or associates.
Failure to declare is punishable by fines up to RM250,000 or imprisonment of up to ten years.
The amendments clarify that persons delegated with Finas’ powers must follow all conditions, procedures and restrictions set by Finas.
Delegated powers must be exercised in the name of Finas and Finas may perform any delegated function at any time.
Section 22A is removed which previously provided for certificates of merit for short subject films.
The definition of short subject film is also deleted.
Secrecy provisions are enhanced with penalties for breaches under Section 29 increased to fines up to RM100,000 and imprisonment up to three years.
Regulation making powers are expanded and the Minister may exempt any person or class of persons from subsidiary legislation under the Act.
According to the explanatory statement, the Amendments align Finas’ functions with current industry needs and will not require additional government expenditure.
