2 DEFINITION OF CREATIVE INDUSTRY Creative industries can bedefined as those industries that emphasize individual creativity, skills and talent and have the potential for wealth and job creation through the generation and exploitation of intellectual property.Permbangan semasa ekonomi global menunjukkan industri kreatif adalah
3 BIG aspirations from Creative Sector What’s the GAP in 2020? RM30bGAPWhat’s theGAP in 2020?RM3bEPP MY Creative ContentRM33bTotal Creative ContributionCAGR 11%GNI 2020 (f)Creative ContentRM 9.4 BillionRM 33Billion2008 GDP (1.27%)CAGR11%2020 (f)GDP (2.2%)Sourced from MDeC Creative Industry Baseline Study Scope is limited to TV, Film, Games, Digital Content, Animation, Advertising, Music and Radio .Assuming nil Net Income Transfer from Overseas, the forecasted GNI in 2020 is also RM33b.Creative Content GDP (2008):Canada 7.4%, UK 6.4%, Spore 5.6%, China 2.5%
4 POTENTIAL FOR LOCAL CREATIVE INDUSTRIES To generate economic growth through financial returns generated from creative activities.To increase investment in the related areas and supporting industries.To enhance and strengthen the existing companies thus open career opportunities and reduce the unemployment.To increase the number of experts and activists in the industry.
5 POTENTIAL FOR LOCAL CREATIVE INDUSTRIES To encourage research and development that is crucial in promoting the industry.To improve the product patent measures of the creative industry.7. To raise awareness on intellectual property.8. To strengthen international relations and cooperation.
6 POLICY STATEMENTStrengthening the creative industry of the nation based on creativity and innovation in order to contribute to the high-income economy.
7 The SCOPE OF CREATIVE INDUSTRY MultimediaFilm and TV Productions, AdvertisingDigital Design including Games and Virtual WorldAnimation and Digital ContentPublishing and eBookArts and CultureCraftsVisual ArtsMusicPerforming ArtsCreative WritingFashion and TextilesCultural HeritageMuseumArchiveConservationPreservation
8 ISSUES AND CHALLENGESWeakness in the institutional framework of legislation, enforcement, coordination and monitoring.Low awareness of the creative industry’s potentialsIntellectual Property issuesHuman Capital Development issuesTechnologyFunds and Financial IncentivesMarketing and PromotionInfrastructureResearch and DevelopmentCompetitionSince the Creative Industry involves creativity, the state of the industry’s talent, or HumanCapital defines the quality and competitiveness of the industry. Much effort is being madeto create, nurture, retain and reward the industry talent. Efforts are being introduced andimplemented to encompass schools, institutions of higher learning as well as thecommercial sector.Infrastructure and Infostructure deals mainly with the connectivity, access and efficiency.As information becomes more complex in structure and format, broadband penetration,service quality and accessibility is a major industry enabler. As such initiatives such as theimplementation of the High Speed Broadband is being pursued with gusto by the public andprivate sectors.The numerous policy recommendations aimed at creating a vibrant creative sector is alsoseen to bear fruit. This shows the seriousness of the government in “deregulating” thesector as to not stifle creative ideas.2
9 STRATEGYStrategy 1 : To strengthen the human capital through specialised training, learning and creative opportunities.Strategy 2 : To create a conducive environment by establishing institutions, infrastructure and financial support (incentives / funding / investment).Strategy 3 : To ensure that the Malaysian brand products are accepted in the local market and able to compete in regional and international markets.The Creative Industry consists of the following key players:• Ministries, Authorities andRegulators• Funders• Demand side participants• Supply side participants
10 STRATEGYStrategy 1 : To strengthen the human capital through specialised training, learning and creative opportunities.Strategy 2 : To create a conducive environment by establishing institutions, infrastructure and financial support (incentives / funding / investment).Strategy 3 : To ensure that the Malaysian brand products are accepted in the local market and able to compete in regional and international markets through the continuous promotion.Since the Creative Industry involves creativity, the state of the industry’s talent, or HumanMuch effort is being made to create, nurture, retain and reward the industry talent. Efforts are being introduced and implemented to encompass schools, institutions of higher learning as well as the commercial sector.Funding available is also geared at helping companies to kick start ideas, commercialise them as well as to export these overseas. This is seen by the allocation of RM200 million by the governmen to KPKK to help the growth of the industry. The EPP also allocates a sum to the tune of RM 30 billion to the industry to help it grow and increase GNI.
11 STRATEGYStrategy 4: To increase research and development efforts in the creative industry.Strategy 5 : To encourage innovation and technology application and to increase local expertise towards advancement in the creation of products and works of creative industries.Strategy 6: To encourage the support and involvement of private companies, government-linked companies (GLCs) and multinational companies (MNCs) in developing the nation's creative industries.Strategy 7: To fortify the supporting industries.
12 STRATEGYStrategy 8: To manage, implement and enforce laws, acts, and regulations on copyrights in order to strengthen the regulatory processes for the product and work of the creative industries.Strategy 9: To develop creative industry intellectual property as a new commercial asset.Strategy 10 : To instil appreciation and positive perception amongst the society regarding the image, potential and the future of creative Industries .Strategy 11: To utilise governmental creative institutions and non-governmental organisations(NGOs) as partners in the development of creative industries.Infrastructure and Infostructure deals mainly with the connectivity, access and efficiency.As information becomes more complex in structure and format, broadband penetration,service quality and accessibility is a major industry enabler. As such initiatives such as theimplementation of the High Speed Broadband is being pursued with gusto by the public andprivate sectors.The numerous policy recommendations aimed at creating a vibrant creative sector is alsoseen to bear fruit. This shows the seriousness of the government in “deregulating” thesector as to not stifle creative ideas.
13 12 Funds Available For Creative Industry TotalRM11mTalent developmentNKEA FundNon-NKEA FundCreative Content Scholarship (MOSTI)Pre-productionICON (MDeC)Creative Industry Development Fund (MCMC)Computer Generated Images - CGI (FINAS)Production and National Heritage Film Fund (FINAS)ProductionMAC3 Co-production (MDeC)Animation Film Production Fund (FINAS)MSC Malaysia Intellectual Property Creators Challenge (MDeC)Film, Arts Multimedia Development Fund (FINAS)Indigenous Creative Industry 2 (MDeC)Documentary production Fund (FINAS)Post-productionTotal> RM357mBSN Industry Creative Loan /MICC
14 Creative Industry Loan (BSN) To finance the production of creative products for commercialisation
15 CREATIVE INDUSTRY LOAN EVALUATION PANEL, KPKK Panel on Creative ContentKPKKMDECRelevant agenciesTerms of ReferenceEvaluate the proposalRecommend to BSNWithin 1 week
16 PANEL ON CREDIT EVALUATION, BSN BSN Credit CommitteeMinistry of FinanceMDECFINASBank NegaraOther partiesEvaluate the financial aspectsWithin 1 week
17 APPLICATION REQUIREMENTS Sole Proprietorship, Joint Owners and CompaniesThe Company shareholders shall be at least 50% Malaysian
18 CREATIVE INDUSTRY LOAN STATUS UNTIL 30 APRIL 2012 Application Received = 385Approved = 182(RM164m)
19 CREATIVE INDUSTRY GRANT APPLICATION AND EVALUATION PROCESS Receive ApplicationCheck Eligibility TechnicalEvaluationCommitteeCommittee’s approvalApprovedLetter of ApprovalProvisiondistribution Monitoring CommitteeAppealsreject
20 GRANT FUNDING REQUIREMENTS Creative Industry Grants can be used to finance:Professional fees for artists, production crews and other related workersThe cost of production set, props and other related materialProcurement of equipment, hardware and softwareConsultancyCopyright registration
21 GRANT FUNDING REQUIREMENTS OF CREATIVE INDUSTRIES Financing for the purchase of assets, hardware and software does not exceed 20% of the total funds requested.Applicant is eligible for funding only one project. Application could only be considered after the success of previous projects and not more than three times.Applicants who have received financial support in the form of grants from other sources are not encouraged to apply for the same project for the same phase.
22 25 SECTORS and 4 ENABLERS established to partially fill up the GAP in 2020Creative SectorSector MusicSector Visual Arts & CraftSector Performing ArtsSector Film & TVSector Digital Content & Multimediato partially fill up the GAPEnabler : Marketing, Sales and DistributionEnabler : Human Capital DevelopmentEnabler : Intellectual PropertyEnabler : Finance
23 DIKN LAB OBJECTIVESTo develop the catalytic projects to help realise DIKN.To ensure catalytic projects are tied with key performance indicators.To ensure indicators are economic centric.To provide a programme through to 2020.
24 Creative sector is an emerging source of income to Malaysia and DIKN Lab sets to contribute … GNI: RM2.928bInvestment: RM55.5mJob: 20,354
26 Quick wins in 2012 and 2013 Sector Projects Owner Investment Total InvestmentMusicMarketing & PromotionTalent DevelopmentRIM/KPKKKPKKRM6,000,000RM 500,000RM6,500,000Visual Art & CraftMarket CaptureDesign ImprovementEntrepreneur DevelopmentBalai Seni Visual NegaraKraftangan MalaysiaRM1,000,000RM5,000,000RM11,000,000Performing ArtsDeveloping content (Theatre) through collaborations with foreign artists and known establishments.Talent pool growth through grassroots program.Matching grant as seed funding to promote sustainability and Malaysian contentCreation of Performing Arts Hotspots and gazette busking zones.JKKN & Industry PlayersRM10,000,000Film & TVFilm:Project Script Bank.TV:To revise fees for content commissioning.FSCCC / FINASRTMRM2,000,000RM12,000,000Digital Content & MultimediaPilot Adoption of National Mobile Action Code ( MCode ) Initiative for Tourism/Heritage sites(PILOT: Muzium Negara).ADAVista/MDeC
27 Quick wins in 2012 and 2013 Sector Projects Owner Investment Total InvestmentMarketing, Sales & DistributionKLCCIMKPKKRM10,000,000Human Capital DevelopmentConduct skills upgrading training programs by respective government agencies / industries / NGOs and Community Based Organizations (CBOs).Training of Trainers (ToT) program.Establish Creative Chair (Pilot).Department / Agency / Industry / NGO / CBOKPKK / UNESCOMOHE / KPKKRM1,000,000RM3,000,000RM5,000,000TOTALRM55,500,000
28 Quick wins in 2012 and 2013 Music Sector Projects Owner Start Date End DateExpected OutcomeGNI, Investment, JobMusicAnti Piracy (Physical & Digital)MyIPOImmediateOngoingEnforcement of Digital Anti Piracy Act.Implementation of Copyright CourtIdentification of Hot Spots – Digital & PhysicalInternational benchmarking.Industry dialogue with regulatory body.Draft, Approval and Signing of Digital Code of Conduct MOU.Implementation – Amended Copyright Act 2011GNI (OVERALL PROJECTS)2012 – RM 200mil2013 – RM 210milINVESTMENT- NILJOB (OVERALL PROJECTS)2012: 3,5002013: 3,700
29 Quick wins in 2012 and 2013 Film & TV Sector Projects Owner Start Date End DateExpected OutcomeGNI, Investment, JobFilm & TV(Film)Content & Intellectual PropertyFSCCCProject Script BankTo establish IP Ownership body like MACP for royalty monitoring & collection.Enforcement of anti-piracy measuresCCI-SCFINAS MOFFINASMYiPOMCMCKPDNKK/KDNQ2’2012Q4’2012This council will be made up of above the line key personnel from the industry and Government representatives from MOF, FINAS, and MCMC, & MDEC.Script development fund to encourage production of new scripts & projects (further generated); matching grantIP to CreatorNew IP ownership sharing structures50% ownership to creators by 2013Body to extend function monitor industry issues.Reduce piracy of local content by 50%Enforcement officers ensure local products not piratedENABLERINVESTMENTRM2mil
30 Quick wins in 2012 and 2013 Film & TV Sector Projects Owner Start Date End DateExpected OutcomeGNI, Investment, JobFilm & TV(Film)2. FundingTo set up Creative Venture Capital fundMoFQ1’2012Q4’2012Better quality productsknowledge exchange –jobs createdexpertise-marketability increased.ENABLERROI – Govt take equity.
31 Quick wins in 2012 and 2013 Film & TV Sector Projects Owner Start Date End DateExpected OutcomeGNI, Investment, JobFilm & TV(Film)3. Revenue Sharing and regulatoryTo revise box office takings ratioFSCCC/AGC/FINASQ2’2012Q4’2012Local and International advisors engaged.Producer get higher cuts from box office shareswealth sharingattract investorsLook at anti competition act.ENABLERNo. organisation can participate in more than 2 of the 3 film industry activities (production, distribution, exhibition)Enforcement of Finas Act
32 Human Capital Development Quick wins in 2012 and 2013Human Capital DevelopmentSectorProjectsOwnerStart DateEnd DateExpected OutcomeGNI, Investment, JobHuman Capital Development1. Creative Industries EducationIPTA/IPTS / Boutique institutions / Community College revisit and review program to meet creative industry demand.MOHE / KPKKJune 2012Dec 2013Graduates that meet industry demand and employabilityINVESTMENT:- NILJOB: 5500Increase the number of students enrolment in art schoolsMOEJan 2013100 new students for new intake 2013
33 Department / Agency / Industry / NGO / CBO Quick wins in 2012 and 2013Human Capital DevelopmentSectorProjectsOwnerStart DateEnd DateExpected OutcomeGNI, Investment, JobHuman Capital Development2. Creative Industries TrainingConduct skills upgrading training programs by respective government agencies / industries / NGOs and Community Based Organizations (CBOs)Department / Agency / Industry / NGO / CBOJune 2012Jan 2013Skilled creative industry workersINVESTMENT: RM1milJob: 372Expand scope of existing Creative Industry Lifelong Learning Program (CILLP) under MDEC to include other sectors of the creative industryMOSTI / KPKKMarch 2012Dec 2012INVESTMENT:- NILJob: 100Training of Trainers (ToT) programKPKK / UNESCOSkilled trainers for creative industriesRM1mil
34 CREATIVE ROADSHOW (JELAJAH KREATIF) 07/05/10CREATIVE ROADSHOW (JELAJAH KREATIF)To create awareness among the creative artistes.To provide inspiration and opportunities for creative artistes to participate actively in creative industries programmes.To stimulate and motivate artistes to continue producing outstanding and competitive creative works/products.To disseminate information on available efforts and fund for the development of creative industries.34