Background

One of the main goals of the MSC Malaysia is to catalyse and nurture the creative cluster of the Malaysian IT/Multimedia companies. In line with this objective, the MAC3 Co-Production Fund (the “Fund”) was launched with an initial allocation of RM75 million to support the creation and development of original works within the animation and game development sector of the creative cluster.

The Government has allocated the Fund to be managed by Multimedia Development Corporation Sdn Bhd (“MDeC”) to be awarded to qualified MSC Malaysia-Status Companies, in accordance with the details set out. The Fund is designed to help innovative local companies to co-produce animation and game development projects with reputable foreign co-production partners that will contribute to the overall development of the MSC Malaysia.

Objective

Key objectives of the Fund are to promote and stimulate:

1. The potential for creation of original works within the animation and game development sector of the creative cluster;
2. The creation of sustainable enterprises in terms of job creation and market expansion; and
3. Talent development through leveraging on international partners to enhance creative, technical and human capital competencies locally

Eligibility

The applicant is required to meet the following criteria (the "Eligibility Criteria") to be eligible to apply for financial assistance under the Fund (an "Award") and upon receipt of the Award, the Recipient (the applicant, upon receipt of an Award shall hereinafter be referred to as the "Recipient") shall continuously comply with such Eligibility Criteria at all times thereafter, insofar as monies are due and owing to MDeC by the Recipient:

1. Be a MSC Malaysia Status Company within the creative cluster as determined by MDeC in its sole discretion and be in compliance with all laws and other requirements associated with holding such status;
2. Have an issued and paid-up share capital of at least RM50,000-00;
3. Be at least 50% Malaysian owned (legally and beneficially);
4. Staff shall comprise majority Malaysians;
5. Have a track record in development of creative works whether as an outsourced service provider or in creation of original works; the applicant’s track record shall be measured against criteria determined at the discretion of MDeC from time to time;
6. Have entered into a written contract or a committed arrangement with a reputable Foreign Co-production Partner (as defined below) for the development of creative works;
7. An applicant shall not be a Recipient of, or have previously received, the MAC3 Co-Production fund at any time whatsoever; and
8. The Project shall not have received any funding from the Government and/or MDeC.

Project Priorities

Projects Selection Criteria:

1. The applicant has identified a party(ies), which shall be a legal entity duly established or incorporated outside Malaysia which is not related or connected to the applicant in any way ("Foreign Co-production Partner(s)"), and has entered into a preliminary understanding to jointly produce and finance a project to develop original works in animation and/or multimedia games (the "Project") and for the distribution of the works under the Project;
2. Maximum Project production timeline shall not exceed 3 years from date of first disbursement of funds pursuant to the Award
3. Content of the Project is consistent with positive Malaysian values. Accordingly, any project which contains elements of excessive violence, sexual violence or sexual exploitation, or of a defamatory, obscene or otherwise illegal nature will not be considered.
4. The Project will expose Malaysians to:
   • Production techniques;
   • Accepted industry project management practices; and
   • Advanced technology.
5. The Project will significantly involve Malaysians in pre-production, production and post-production. In this regard, the applicant is obliged to provide quantifiable measures for delivery of specific types and number of jobs to be created, the types of original works to be created and its growth potential, to be achieved by specific milestones over a specified period of time.
6. It shall be a condition of the Award that the Recipient attributes to the Government and to MDeC, credit for its financial support, upon successful completion of the Project.

Extent of Funding and Repayment Obligations

An Award will provide financial assistance for up to 98% of project cost of the MSC Malaysia Status Company in co-production or RM5,000,000, whichever is lower.

The Recipient shall have an obligation to repay, as follows : Repayment amount shall be 50% of the gross revenue generated from the Project due to the Recipient up to the amount funded or for 5 years, whichever is earlier.

MAC3 Co-Pro Fund Application(DOC, 136kb)