The Malaysian Insight

LOCAL cinemas will go out of business unless the government provides financial assistance to help the industry overcome massive losses brought about by the Covid-19 pandemic, said stakeholders.

They told The Malaysian Insight the situation is bleak until such time as when the health crisis is resolved and people start going to the movies again.

Cinemas nationwide suspended operations at the start of the month to save money while a conditional MCO is in effect in the Klang Valley, Sabah and Labuan.

Golden Screen Cinemas (GSC) public relations and branding manager Sharmine Ishak said the economic outlook for the next six to 12 months is challenging and will remain so until  a vaccine is found.

“Given this predicament, we are appealing to the government for financial assistance and support from the next relief package for the sustainability of the local cinema industry,” he said.

Sharmine recommended a cinema subsidy scheme similar to Hong Kong’s, which provides a subsidy of RM25,000 per screen.

He said grants should also be given to local film producers for completed movies to encourage screenings in the fourth quarter and beyond.

“There could also be a waiver of the entertainment tax (of 25% of the ticket price) and performance licences until the end of 2021.

“Lastly, give loan assistance to cinema operators under the Penjana initiative,” he said.

The movement control order in its various versions has severely affected movie outings, leading to a substantial drop in ticket sales.

GSC said October ticket sales was merely 12% of pre-epidemic sales, largely due to delayed releases of Hollywood blockbusters.

GSC had been looking forward to the December release of Wonder Woman 1984 to regain some financial footing.

Mohit Bhargava, sales and marketing general manager for TGV Cinemas, said thousands of jobs are on the line.

“In TGV, most non-full-time staff have already been let go. And all our remaining staff continue to work reduced hours,” said Mohit.

He pointed out that rent were a major operating expense for cinemas.

“We sincerely hope that with support from the government and our landlords, we can reopen as soon as possible and bring back movies to the big screen.”

Meanwhile, Malaysian Association of Film Exhibitors said it will monitor market conditions and react accordingly.

The association has also appealed for government assistance and rent support for the industry. – November 6, 2020.