By Tengku Noor Shamsiah Tengku Abdullah
Source: Bernama

Industry players with the potential to export high-tech multimedia content will be given priority in applications for funding from the RM200 million Creative Industry Fund.

The Deputy Chief Executive Officer (Credit Management & Business Support) of Bank Simpanan Nasional (BSN), Winston Emmanuel said the fund announced by Prime Minister Datuk Seri Najib Tun Razak while tabling the Budget 2010, is aimed at boosting commercial activities in the creative industry.

"BSN has been mandated by the government to manage the fund, established specifically for the creative industry players.

"This is the first time BSN has been given this role and we are honoured of course. We look forward to assisting the government in meeting the objective of the fund," he told Bernama in an interview here.

According to Winston, BSN publicly launched the fund on Dec 31 last year.

The event was graced by Datuk Seri Dr Rais Yatim, the Minister of Information Communication and Culture.

He said BSN already received formal applications and is currently processing them.

"The bank, in evaluating the proposals, will engage both industry players to provide feedback and also government agencies like the Multimedia Development Corporation (MDeC) and the Information Ministry," he said.

"While receiving applications from the creative industry, the greater focus is on those who want to export their production content," he explained.

"We want to stress that our desire is to see Malaysian creative content being exported and be seen on cinema screens, television and other media in foreign markets.

"So, in our evaluation, if people come and say they have a proposal which is meant for the foreign market, it is they who will receive priority compared to those looking at just within the local market," he said.

He also highlighted that the fund, which provides a credit facility ranging from RM50,000 to RM5 million, is open to sole proprietors as well as partnerships and private limited companies.

The undertakings must have at least a 51 per cent Malaysian equity, in film making, musical production, animation, and related activities.

To ensure the funding is properly channelled, Winston said BSN is working closely with the Ministry of Information Communication and Culture, MDeC, the Ministry of Science, Technology and Innovation (Mosti) and those considered experts on the matter.

"We have received a lot of advise from those concerned to ensure we know who the right target groups are. We also want to ensure we do not duplicate the work.

"In this regard, we work closely with MDeC and the others to ensure we hit the right target," he highlighted.

Winston also said BSN had segregated the creative industry into four groups.

There is firstly the audio visual and new media group, comprising those in the film industry, animation, interactive and mobile services.

It also includes television production and music.

Those in the animation business, as digital content, had much more interest worldwide including among local industry players. These players will be given priority.

"The second group is what we call "rekaan" and has product innovation, fashion and accessories as part of it."

"The third is craft and culture. This grouping has cultural presentations, performances, art galleries and handicraft."

"The final grouping encompasses the print section for literature, writing and the production industry," he stated.

He said when the minimum 51 per cent Malaysian equity is met, the loan application will also be based on an evaluation of the customer's proposal to see if it is viable.

"Then, we will consider a loan package depending on their cash flow and requirements.

The loan will be used as their working capital, for production and asset requisition related to the production for commercialisation purposes, and is offered over a period of one to five years.

"We finance up to 90 percent of the applicants requirements and also divide the proposal into a grace and utilisation period," he said.

Winston said the grace period would normally be up to three years.

In terms of interest rates, during the grace period, it is two percent per annum and is calculated on a monthly basis which means, it is much lower. Thereafter, upon expiry of the grace period, it is four percent per annum.

He also indicated that BSN was working towards a maximum of one month between an application, approval and drawdown.

He said the bank would be careful in its efforts to disburse the entrusted fund.

"We will be careful in ensuring that the disbursement is done in a transparent manner and to a broad profile of creative industry people."

"This is also to ensure that the aspiration and objectives of the government in establishing the fund is met," he said

In terms of publicity for the fund, Winston said there were programmes being drawn up to create public awareness of it.

"We have already posted it on our website.We intend to participate in some promotions organised either by the Ministry of Information Communication and Culture or MDec for the creativity fund as well as promoting it in the print media," he added.

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