Creative economy has potential to drive Malaysia's growth, says Fahmi

KUALA LUMPUR: The creative economy, which contributes about 6.8 per cent to the gross domestic product (GDP), has significant potential to drive Malaysia's economic growth, says Communications Minister Datuk Seri Fahmi Fadzil.

He said advances in digital technology had enabled local creative content, including podcasts, music, animation, video games and social media content, to reach global audiences without geographical boundaries.

"When we produce a podcast, the audience isn't limited to those inside the studio. Someone in California can watch it, someone in New Delhi can watch it, and even someone in Vladivostok can watch it," he said during an appearance on the Jangan Kecam podcast hosted by Nazz Abdullah.

Fahmi said this created opportunities to export local content and intellectual property (IP) globally while generating new revenue streams for industry players.

This potential prompted the government to establish the Orange Economy Council to strengthen the creative industry ecosystem, covering sectors including film, music, video games, e-sports and animation.

On whether content creators fall under the "orange economy", Fahmi said they were part of the creative sector, but their business models varied and needed to be assessed before specific assistance could be determined.

"Content creation is not a job category with a uniform business model. Some generate income through affiliate marketing, product sales, streaming, view counts, advertising, sponsorships and brand collaborations," he said.

He said digital platforms such as TikTok, TikTok Shop, Shopee, Facebook Marketplace and Lazada also contributed to digital economic growth by providing support and training in sales, live streaming and revenue generation.

Fahmi said key issues requiring government attention included copyright protection and the growing use of artificial intelligence (AI), particularly where technology uses the works or identities of IP owners.

"Many content creators are currently asking about AI — how to use it and whether they can use tools like Suno to create AI-generated music.

"For instance, if we want to use a song by Faizal Tahir, feed it into AI to create a new track and then include that AI-generated music in our content, is that permissible?

"In this regard, the government needs to step in to ensure that the rights of Faizal Tahir and other intellectual property owners are protected," he said.

On funding, Fahmi said there was currently no specific fund for content creators, as the ministry's financial support remained focused on sectors such as film and music under established frameworks including the National Film Policy and National Broadcasting Policy.

However, he said the Communications Ministry and the Malaysian Communications and Multimedia Commission (MCMC) continued to assist eligible mainstream and online media outlets, including through the Media Innovation Fund.

"The amount we allocated last year remains applicable this year, which is RM30 million," he said, adding that applicants must be registered with the Information Department as electronic media entities.

Fahmi also urged creative industry players and content creators to take advantage of Inland Revenue Board tax relief facilities, including deductions for business equipment purchases.

He said no Malaysian content creators' association had officially met him to raise specific industry issues, but the government remained open to understanding their needs and challenges.