Long-form animation began commercially in 1995 on a Government initiative. Since then, there has been an unprecedented production of animation for television and cinema, far surpassing several ASEAN countries that have studios providing animation services for foreign countries but do not have their own, homegrown series or features. However, Malaysian animation is at the crossroads. Even though foreign sales have been made, it is not cost-effective for producers to continue making animation. The delay in approving contracts by the Government station ( the only TV station that pays US$10,000 per episode), has caused some producers to fold up or downsize. The problem is further compounded with the large number of graduates entering the industry - with too few studios willing, or able, to employ them. More and more foreign TV series are flooding the TV channels. Action needs to be taken to prevent the animation industry from floundering. This paper will explore the state of the industry to see what needs to be done so that Malaysia will not lose out in the production of animation films and TV series featuring local stories and characters that can effectively reach out to young people and, at the same time, can appeal to a global audience.
