KUALA LUMPUR: Skop Productions founder and producer Datuk Yusof Haslam has described Prime Minister Datuk Seri Anwar Ibrahim’s willingness to meet him recently as a “new ray of hope” for local arts practitioners.
A news outlet today reported that the meeting was fully utilised by Yusof to voice critical issues plaguing the creative industry, particularly the 25 per cent entertainment duty, which he said is excessively burdensome for filmmakers and cinema operators.
During the exclusive 20-minute meeting last week, Yusof was accompanied by his daughter, Syamin Yusof, who is also the chief executive officer of Skop Productions.
As an adviser to the Malaysian Film Producers Association (PFM), Yusof said he carried the mandate of industry players who hope the government will reconsider the current tax structure for the survival of the local film ecosystem.
“I raised the issue of the high entertainment tax of 25 per cent because in most other countries, the highest rate is usually only around six per cent,” he said.
“However, in our country, the tax can go as high as 25 per cent, while the lowest so far is in the Federal Territories at 10 per cent.”
According to Yusof, the high duty not only burdens film producers but also places heavy pressure on cinema operators.
“A large sum has to be handed over to the government before profits are even distributed.
“If a film collects RM10 million, RM2.5 million must be paid as tax, and the remaining 75 per cent still has to be shared with cinemas,” he said.
He added that this leaves both parties with increasingly thin profit margins.
“In the end, the margins become very small for both sides,” he said, stressing that the current system is unsustainable in the long term.
Yusof said a reduction in the entertainment duty would not only help save producers from losses but also enable cinemas to continue operating in the current challenging economic climate.
“Cinema operators have also told us that if the tax can be reduced, we can help each other. Producers can survive, and cinemas can continue to breathe,” he said.
On the Prime Minister’s response, Yusof said Anwar took note of the issues raised and informed him that he would discuss the matter with the respective state governments.
The meeting, he added, was not solely serious, as it was also lightened by casual conversation.
“He congratulated us and said he had watched Skop productions such as ‘Sheriff: Narko Integriti’ and ‘Blood Brothers: Bara Naga’,” Yusof said.
“The Prime Minister also expressed his appreciation for our efforts in producing works that have managed to win the hearts of audiences.”
Yusof also expressed his deepest gratitude for the Prime Minister’s willingness to make time despite a packed schedule.
“I am very thankful and appreciative that the Prime Minister was willing to listen to the grievances of film industry players,” he said.
“I hope this meeting will be the starting point for positive change in the national film industry.”
© New Straits Times Press (M) Bhd
