You need a FINAS licence under Section 22 of the FINAS Act. This applies if you produce, distribute or show films as a business. In 2020, the Cabinet decided that Malaysians can post their own social media videos without a licence. Check how Section 22 applies before you accept paid production work.
FINAS means the National Film Development Corporation Malaysia. The relevant law is Act 244. Its full name is the Perbadanan Kemajuan Filem Nasional Malaysia Act 1981. We reviewed the official reprint of the Act. It includes changes made up to 1 January 2006. You can read it on CommonLII. We also reviewed the bill for the 2025 amendment. Parliament published it (D.R. 40/2025).
What Section 22 says
Section 22(1) covers three activities. They are the production, distribution and exhibition of films. A person cannot carry out one of these activities without a licence. They also cannot carry out a combination allowed under Section 21. The law says "there is in force a licence authorising him to do the same".
People who apply should also know two other parts of Section 22:
- Under Section 22(2), you must send the application to FINAS. You must use the required form. FINAS may issue the licence after you pay the required fee. The licence stays valid for a fixed period. It may also include terms and conditions.
- Under Section 22(3), FINAS "may refuse to issue a licence without assigning any reason therefor". The decision is final. It cannot be challenged in any court.
What Section 21 adds
Section 21(1) says no person may carry out all three activities together. However, these pairs are allowed:
| Allowed combination | Example |
|---|---|
| Production and distribution | A studio that makes films and sells them to broadcasters |
| Production and exhibition | A company that makes films and runs a screening venue |
| Distribution and exhibition | A company that buys films and shows them in cinemas |
Section 21(2) also says a person can carry out only one activity.
The penalty
Breaking any rule in this Part is an offence under Section 25(1). This is based on the reprint. On conviction, the penalty is a fine of up to RM50,000, up to two years in prison, or both.
The 2025 amendment increases both limits. Under Clause 12 of the bill, "lima puluh ribu" (fifty thousand) becomes "dua ratus lima puluh ribu" (two hundred and fifty thousand). The bill also replaces "dua tahun" (two years) with "lima tahun" (five years).
| Before the amendment | After the amendment takes effect | |
|---|---|---|
| Maximum fine | RM50,000 | RM250,000 |
| Maximum prison term | 2 years | 5 years |
When the 2025 amendment takes effect
The amendment bill passed on 18 December 2025. This is shown in Parliament’s Dewan Negara bill list. See Parliament, Dewan Negara bills.
However, the bill starts only on a date chosen by the Minister. The Minister must publish a Gazette notice ("pemberitahuan dalam Warta"). Passing the bill in Parliament does not put it in force yet. Check the date with FINAS or in the Gazette.
The government has also explained its wider goals. Deputy Communications Minister Teo Nie Ching discussed the amendments on 3 December 2025. She said films "will soon be defined to include" streaming platforms, social media and AI content. See The Star, 3 December 2025. However, the first-reading bill text we reviewed lacks this new definition. Treat this as the government’s stated intention until the final text and any related rules are published.
What the 2020 Cabinet decision said
In July 2020, the government first told Parliament that everyone posting videos needed a FINAS licence. It changed its position soon after. On 24 July 2020, The Star reported that "the Cabinet has decided that Malaysians do not need a licence to post their videos on social media" (The Star, 24 July 2020).
The decision covered people posting their own videos. It did not change the wording of Section 22 for film businesses.
Who should check, and who probably need not
The table below sums up the cases supported by these sources. Use it only as general guidance. It is not legal advice.
| Your situation | What to do |
|---|---|
| Posting your own videos on social media | The 2020 Cabinet decision says no licence is needed |
| A student making class projects | Ask your school how it handles class and client projects |
| A freelancer editing for a production house | The production house holds the production role; ask what it holds |
| Running a company that produces films, dramas or commercials for clients | Check Section 22 with FINAS before you take the work |
| Distributing or screening films | Check Section 22, and Section 21’s limits on combining activities |
Contact FINAS directly if you are unsure. Section 22(3) gives the agency broad power to decide. Therefore, FINAS’s own response is the answer that matters.
How to prepare before your first paid production
These simple steps can help you follow the rules for paid jobs.
- Identify your role in every job. Are you the producer? Or has someone hired you and taken that role? The person acting as producer handles FINAS matters.
- Check which licence the client or production house has. Write its answer in your job notes.
- Contact FINAS before accepting your first client. Do this if you plan to open your own production company. Ask about its rules and the expected approval time.
- Keep every invoice and contract. These records can show who produced the video.
- Check when the amendment starts. The higher penalties apply once it comes into force.
You do not need a lawyer for these steps on a small freelance job. However, ask about the licence before the shoot, not after it.
Why this matters when you train
At first, most video production school students work within another person’s production. Licensing matters when you form your own company. It also matters when a client asks who is producing a job. Learn the rule early so you can arrange things correctly.
Students can ask a video production school about licensing in real local productions. They can choose one that covers brand and commercial work. A school in Johor includes commercial advertising production in its programme. This is shown on its course page and home page.
For basic practical skills, read how long it takes to learn video editing. To see how production is growing in the south, read what a big US film shoot coming to Johor could mean for students.
Frequently asked questions
Do I need a FINAS licence to post videos on YouTube or TikTok?
In July 2020, the Cabinet said Malaysians could upload their own social media videos. They did not need a licence. Check this position again after the 2025 amendment takes effect. Also check any related rules.
What does Section 22 of the FINAS Act say?
Section 22(1) says no person may produce, distribute or exhibit films without a valid licence. This also covers an allowed combination of these activities. The licence must allow the activity. You must send the required application form to FINAS.
What is the penalty for not having a FINAS licence?
Under the reprinted Act, the fine can be up to RM50,000. A person may also face up to two years in prison, or both. When the 2025 amendment takes effect, the limits rise to RM250,000 and five years.
Has the 2025 FINAS amendment come into force?
Parliament’s records show that the Dewan Negara passed it on 18 December 2025. The bill starts on a date set by the Minister in the Gazette. Ask FINAS or check the Gazette to confirm that date.
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