Source: Bernama

A RM200 million fund to help stimulate the creative industry took off the ground on Thursday.

Information Communication and Culture Minister Datuk Seri Dr Rais Yatim said the credit facility of between RM50,000 and RM5 million, which was meant for commercial creative activities, offered competitive interests and flexible conditions.

"As the credit facility is meant for commercialisation, it has to be governed by conditions imposed by the authorities and this is contrary to assumptions that the fund is free.

"There is no such thing as a free fund for business. But with interest rates of between two and four per cent, the rate is not only very low and flexible but also fair," he told reporters after launching the Creative Industry Fund here on Thursday.

The fund, which will is meant for filmmaking, musical production, animation, and related activities, was announced by Prime Minister Datuk Seri Najib Tun Razak in the 2010 Budget in October.

Rais said the credit facility, which would be disbursed through Bank Simpanan Nasional (BSN), would also be extended for asset purchases to facilitate commercial activities.

"Only sole owners, joint partners and private limited companies, and business entities with 51 per cent Malaysian ownership are eligible for the loan.

"Those, who are getting grants from the government agencies for projects or products are not entitled to the loan," he added.

He said 22 creative activities in four sectors, namely audio visual and new media (animation, interactive, film and television production), design (fashion, accessories), arts and craft (arts performances, handicraft, galleries), and print media (publishing, writing) can apply for the fund.

"The interest rate is 2 per cent per annum calculated on a monthly rest basis during the grace period and at 4 per cent per annum calculated on a monthly rest basis upon expiry of the grace period. Further details can be obtained on www.bsn.com.my."

He said applicants could seek financing up to 90 per cent of their cost from a special committee set up by the ministry.

"The contract documents can be pledged as collaterals, which could be handed to the banks subject to conditions imposed, by producing eligible guarantors or by determining the adequacy of company assets," he added.

On the repayment, he said BSN would fix the instalments throughout project period, loan period or fast track repayment for those posting "blockbuster" revenue.

Rais said the credit facility could be taken in stages or one lump sum based on the conditions set by the bank.

---