THE growing reputation of Singapore's film-makers and animation whiz-kids has helped unlock an unprecedented $400 million or so of private equity that can be used for new productions.
The industry's new-found riches mark a huge turnaround from four years ago, when content creators had a desperate struggle finding funding.
It was usually a case of applying for a government grant or scrounging help from 'family, friends and fools', in the words of Media Development Authority (MDA) assistant chief executive Seto Lok Yin. 'Now there is a fourth 'f' - financing,' said Mr Seto, referring to private funding.
While the region's growing prosperity is behind the influx of new money as is the realisation among financiers that media investments can turn a profit, the growing recognition of Singapore media companies is perhaps the most potent.
Recent successes include Secrets Of The Battleship Yamato, by Singapore's Bang and the the United States' Nova Productions. It has run on the Public Broadcasting System in the US and Discovery Channel Asia.
Llocal documentary-maker Grace Phan's Where The Sun Rises, narrated by former East Timor president Xanana Gusmao, has won many accolades and sold to markets, including Australia and New Zealand.
Film-makers in Singapore have made a tremendous leap in the last three years, with many now as good as Western production teams, Mega Media managing director Jonathan Foo said.
'At this point, people are not surprised to see Singapore-made content on an international channel,' said Mr Foo, whose firm manages two funds with a combined kitty of over US$50 million (S$72 million) earmarked for documentaries, feature films, animation films and TV series.
The quality factor has emerged in parallel with the white-hot Asia-Pacific entertainment market, which is enjoying double-digit annual growth - the fastest pace in the world, according to a PriceWaterhouseCoopers report. And savvy investors, said Mr Seto, want a piece of this action.
There is also increased sophistication and awareness among investors that media is a viable asset class.
But The Straits Times understands that the money tends to come from offshore while local investors display a low awareness of media as an asset class.
The MDA says it is not possible to separate local from foreign investment, but the agency is working on raising awareness about the risks, rewards and other issues surrounding media investments.
While finance and opportunities for the media industry have grown, Upside Down's executive producer, Mr Chan Gin Kai, warns that the requirements are different - and more demanding - compared with that of the industry's traditional sponsor, the Government.
Upside Down, which manages a fund investing in media projects, recently signed an agreement with a local studio to fund its US$5 million animated feature film.
Because of these higher requirements, local film-makers sometimes fail to secure funding, as they do not know how to sell their ideas and capabilities to an interested investor or go to the pitch without any idea how they will actually distribute their films, said Mr Foo.
'You have to show that your project will make money. Promoting family values isn't good enough,' he said.
But this will change given time and exposure, said Mr Seto. As the industry matures, he said, it will lead to more investments and even co-productions with foreign film-makers.
It will be those steps that will help them develop the skills they need to become truly world-class.
