KUALA LUMPUR – The Finance Ministry confirmed that land and structures at Iskandar Malaysia Studios still belong to Khazanah Nasional Bhd.
Addressing the Dewan Rakyat during question time today, Deputy Finance Minister Steven Sim said that the asset, which is the studio itself, still belongs to Khazanah via a subsidiary, Tanjong Bidara Ventures Sdn Bhd, which operates as a special purpose vehicle.
Sim explained that what is set to be sold instead were the operations of the studio from Iskandar Malaysia Studios Sdn Bhd (IMS) to Studio Management Services Sdn Bhd (SMS), which is a subsidiary of Singaporean media company G.H.Y Culture & Media.
This agreement, he explained, lasts up to 2036.
“IMS faced challenges, particularly during the Covid-19 pandemic, with losses estimated at RM14 million annually.
“Thus, Khazanah made a decision to find a partner who can operate the studio well,” Sim said.
The Bukit Mertajam MP explained that a share sale agreement was signed between IMS and SMS and that they are currently waiting for a conditional precedent to be fulfilled.
Following the transaction, Sim said that Khazanah will receive RM32 million from the sale of shares and rental payments worth RM26 million up to 2036.
Putrajaya also expects that SMS will bring new content production which would benefit the economy up to RM800 million in the next five years.
IMS was formerly called Pinewood Iskandar Malaysia Studios (PIMS) after the Pinewood Group entered into a partnership with the studio complex.
It is believed, according to a report by Hollywood trade magazine Variety yesterday, PIMS’ construction cost was valued at RM528 million, while the total investment injected into the project was estimated to be RM748 million.
In April, reports stated that IMS was sold to Singaporean content producer G.H.Y Culture & Media for RM32 million.
The Vibes also reported that IMS received RM250 million in government grants according to a 2019 financial report and the Pinewood Group in Britain reported financial gains worth RM150 million after its exit from Malaysia. – The Vibes, June 13, 2023
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