Iskandar Film Studio Sold at “Fire-Sale” Price?

Film and TV production complex Iskandar Malaysia Studios (“IMS”) was recently valued at RM32 million, eight years since it was opened after an investment of between RM528m and RM748m. The entertainment news site Variety recently reported that Singaporean content provider GHY Culture & Media acquired IMS for a total of RM35.34m. 

IMS’s 2019 financial report revealed that it received RM250 million in government grants. Prepared by auditors Ernst & Young PLT, the 2019 financial report also mentioned that IMS saw a net loss of RM23.33 million. IMS’ accumulated losses amounted to RM306.3 million, while net current liabilities were stated as RM3.067 million. Despite the staggering losses, the “going concern assumption” was used in the financial report for IMS.

Source: https://iskandarputeri.com

IMS is a studio complex that spans 49 acres (19.8 hectares) Iskandar film studio sold to S'pore firm after losing 90pct value in Iskandar Puteri, Johor. It holds film stages, television

studios, water filming tanks, and production support facilities, among others. A number of notable productions were filmed at IMS, including Netflix’s Marco Polo series and portions of the film Crazy Rich Asians.

The IMS project was the result of a strategic agreement between the government’s investment arm Khazanah Nasional Bhd and the UK’s Pinewood Studios group. IMS’ holding company is Granatum Ventures Sdn Bhd which is itself a subsidiary of Malaysia’s sovereign wealth fund Khazanah Nasional Bhd.

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

According to a report by Hollywood trade magazine Variety, PIMS’ construction cost was valued at RM528 million, while the total investment injected into the project was estimated to be RM748 million. A PIMS’ former director, said in 2014 that the studio was expected to contribute RM1.8 billion to the local economy. In 2019 Pinewood left the partnership, with a joint statement issued stating the collaboration ended through a mutual agreement.

We always get the short-end of our ventures. Taxpayers’ money is used to promote movies and movie-making. In the end, the sad story is like some Hindi or Korean production where the “hero” gets killed. 

It need not be this way if we are clear on what we can or want to do. It’s impossible if local movies are frowned upon for their costumes, language, or culture. That could also apply to a local set doing foreign movies.

So, why did we get into this mess? Someone’s brainchild to produce a Michelle Yeoh? And as most of us know Michelle Yeoh didn’t depend on Government support but pure grit and determination to win an Oscar. Maybe we should have done “The Wolf of Wall Street” in Malaysia?

References:

Iskandar Film Studio sold at “fire-sale” price? Malaysiakini, 7 April 2023

RM250 mil in grants for Iskandar studios before knock-down sale: EY report, Arjun Mohanakrishnan, www.thevibes.com, 9 April 2023