Finance Ministry denies Iskandar film studios sold to S'pore firm

PARLIAMENT | The Finance Ministry has denied claims that the Iskandar Malaysia Studios (IMS) film and television production complex in Iskandar Puteri in Johor has been sold to a Singapore firm.

Speaking in the Dewan Rakyat today, Deputy Finance Minister II Steven Sim (above) said Khazanah Nasional, through its special purpose vehicle (SPV) subsidiary company, still owns the IMS’ assets.

“What happened was the sale of the shares in the studio operator company, namely IMS.

“This is Khazanah's initiative to find new partners to better handle the studio's operations.

“IMS, as the studio operating company, only leases the land and building until 2036,” he said today.

Sim was responding to a question by Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar) on the rationale for selling the studio’s assets to a firm in Singapore.

IMS is a studio complex that spans 49 acres in Iskandar Puteri, Johor Bahru. It includes film stages, television studios, water filming tanks, and production support facilities, among others.

The studio’s film and television production complex was recently valued at RM32 million, more than eight years after it was opened with an investment of between RM528 million to RM748 million.

This was revealed, in April, in a report by American entertainment news site Variety, about Singaporean content provider GHY Culture & Media acquiring IMS for a total of RM35.34 million.

Khazanah to continue financial support

In May, Khazanah confirmed that its wholly-owned SPV - Granatum Ventures Sdn Bhd - would divest its 100 percent stake in IMS to Studio Management Services Sdn Bhd (SMS).

Elaborating on the matter in the August House today, Sim said Khazanah would have to continue channelling financial support to IMS, with an estimated loss of up to RM14 million annually if it remained as an IMS shareholder.

“Khazanah will receive proceeds from the sale of shares in the company operating the studio's operation, amounting to RM32 million, and estimated rent payments until 2036, amounting to RM26 million.

“SMS is expected to bring new productions to the studio worth over RM800 million in the next five years.

"As a result, more job opportunities can be provided in the studio ecosystem as well as bring a positive impact to the local economy,” he added.

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