Animation industry at tipping point

MDeC says with local animation studios already engaged in high-end projects for international clients, it’s time to create and push local content onto the global market. LIM WING HOOI reports.

TALENT and funding continue to be the major challenges confronting entrepreneurs as the country seeks to build a vibrant animation industry.

Director of Multimedia Development Corporation’s (MDeC) Creative Multimedia Division, Hasnul Hadi Samsudin, described the animation industry as being at “the tipping point”.

He pointed out that some companies were already undertaking high-end animation projects for global clients.

“The next evolution for our companies is to engage in creating their own original IP (intellectual property) for the global market,” he said.

Hasnul stressed that the agency, which has been working on developing the industry since the start of the Multimedia Super Corridor in 1996, would continue to push for progress. He said in 2009, for instance, MDeC launched the MSC Malaysia Animation and Creative Content Center (MAC3) to help prod the industry towards the next phase.

The MAC3 provide assistance in all areas of the eco-system, from talent, market access and IP development, to funding and awareness.

“We have good talents with animation skills but they need to further develop artistic capabilities like storytelling and production skills,” he said.

According to Hasnul, the limited creation of original IP was related to the issue of talent and resource gap within organisations. This was because not all companies could afford to invest their existing resources towards creating new IPs.

Another challenge would be funding for content creation. This, he said, could be attributed to the cautious nature of financial institutions which were leery of taking risk in non-traditional industries.

Hasnul says the focus for the animation industry should be on original IP creations.

“We do have (agencies such as) MyCreative Ventures and Malaysia Debt Ventures Bhd (MDV), but we still need more pro-active fund providers. The ecosystem is still growing, and we hope funding opportunities will be available for content creation as the ecosystem matures,” Hasnul added.

Just how big is the animation industry in Malaysia?

The MSC Malaysia’s Creative Multimedia Cluster, which consists of 332 companies involved in various creative multimedia activities, generated some RM7.1bil in revenue in 2014. Animation companies number 111 out of the 332 and had a combined revenue of RM200mil.

Some of the bigger companies include Les’ Copaque, Animonsta, SilverAnt, Animasia, Giggle Garage and Inspidea, and they are the ones that have contributed vastly both as “pens for hire” and original IP creators. Think Upin & Ipin and BoBoiBoy.

Les’ Copaque’s Upin & Ipin is very popular in the region. It has garned over 11 million likes on its Facebook page.

To address the issue of talent, Hasnul said his division would continue to provide development programmes for industry practitioners to upskill the available talent pool.

In the past, they have conducted masterclasses helmed by world-renowned industry stalwarts, including those from animation giants Disney and Pixar.

“We also hope institutions of higher learning and the industry will collaborate more closely to ensure that the constantly changing demand for talent within the rapidly evolving animation industry is consistently met,” he said.

On the issue of funding, Hasnul said financial institutions could contribute to the industry by becoming more involved and supportive in providing financing assistance for animation projects.

MDeC, on its part, does offer grants and funds to help entrepreneurs. This is done through its MaC3 Fund, Bumiputera Content Industry Initiative Fund (BCi2) Fund, Creative Industry Lifelong Learning (CILL) Programme and the Digital Content Industry Fund under the Content Malaysia Pitching Centre.

On the pitching centre, which is aimed at encouraging creative content, Hasnul said the programme was conceptualised and piloted by MDeC in collaboration with the National Film Development Corporation Malaysia (FINAS) and Malaysian Communications and Multimedia Commission (MCMC). The pitching centre consolidates all related government funding for content creation under one roof.

It also aims to serve as the community centre for creative content practitioners.

Hasnul said the focus for the industry should be towards original IP creation. And this required technical and artistic capabilities, as well as expertise in storytelling and development.

“Effective marketing strategies are also crucial. Online distribution platforms make it easier to reach consumers in this digital age but it also makes it more competitive to capture consumers’ attention,” he pointed out.

Companies that provide creative content must also be savvy and look into the licensing and merchandising opportunities of their products, Hasnul stressed. He said they must capitalise on characters or IPs that were loved by consumers.

-The Star