KUALA LUMPUR, June 13 — The Finance Ministry has today denied the sale of a film and television production complex land of 49 acres in Iskandar Puteri, Johor Baru.
Deputy Finance Minister Steven Sim said this was not true at all as the asset still remained in the possession of state investment firm Khazanah Nasional Bhd through a special-purpose vehicle (SPV), Tanjung Bidara Ventures Sdn Bhd.
“What happened was, the sale of shares of the studio operator company, Iskandar Malaysia Studios Sdn Bhd (IMS). This is Khazanah's initiative to look for a new partner who can handle studio operations better.
“IMS, as a studio operator company only leased land and building up to year 2036,” Sim told the Parliament today during Minister’s Question Time.
He was responding to Perikatan Nasional MP Datuk Iskandar Dzulkarnain Abdul Khalid who asked the finance minister to state the rationale for the alleged sale of the 49-acre IMS film and television production complex assets worth RM32 million in Iskandar Puteri, Johor Baru to a Singaporean firm.
Sim in his response added that IMS has contributed RM1.2 billion to the local economy and has made available more than 8,000 job opportunities since operations began in June 2014.
“However, IMS is also facing challenges in terms of financial sustainability and it is worsened by effects on the filming industry due to the Covid-19 pandemic.
“If Khazanah remains a shareholder of IMS, Khazanah has to continue to channel financial support to IMS at an estimated loss up to RM14 million per year,” he said.
Thus, Sim said Khazanah had made a business decision to explore cooperation with parties that can manage the studio better.
“To ensure the chosen party is accurate and to ensure justice in this transaction, the Request for Proposal (RFP) process has been released in March 2021.
“Next, in April 2022, Khazanah decided to choose Studio Management Services Sdn Bhd (SMS) for this collaboration,” he said.
SMS is a team-led consortium local management of IMS and regional partner, GHY Culture & Media Holding Co Ltd and its subsidiary, GHY Culture & Media (Malaysia) Sdn Bhd.
GHY Group is a leading diversified media group company in the Asian entertainment industry and is listed on the Singapore Stock Exchange.
“They are the main customers of IMS since 2018 and have produced three large productions (Little Nyonya, Sisterhood and The Ferryman) in Malaysia with estimated costs amounting to RM150 million.
“Currently, the Share Purchase Agreement has been signed by both parties and awaits Conditions Precedent concluded,” he said.
Following this transaction, Sim said Khazanah will receive the sale proceeds shares of the company operating the studio's operations amounting to RM32 million as well as estimated rental payments up to the year 2036 at RM26 million in total.
“SMS is also expected to bring production new to the studio worth more than RM800 million in a period of five years.
“As a result, more job opportunities can be provided in the ecosystem of the studio as well as bring positive impact on the local economy,” he said.
On April 10, The Star reported that Khazanah confirmed its wholly-owned SPV, Granatum Ventures Sdn Bhd, will divest its 100 per cent stake in IMS to SMS.
The sovereign wealth fund reportedly said SMS is expected to further enhance the services provided by IMS to the industry, as well as facilitate future partnerships and production opportunities for Malaysia.
