Singapore's film industry in the first half of 2025 found itself adapting to an evolving landscape marked by dire challenges, reflecting broader global trends in cinema while addressing unique local constraints of a small but sophisticated market.

The industry faces undeniable setbacks that require honest acknowledgment and strategic responses. Dwindling box office attendance continues to plague local cinema chains. Local producers are concerned whether their releases can even claw in a likely revenue, not even aiming for profit, with audiences showing persistent preference for Hollywood blockbusters and regional Asian content over their own domestic films.

Rising production costs, driven by Singapore's high cost of living and limited economies of scale, have made even modest budget films increasingly expensive to produce without a credible cinema revenue model.

Additionally, the ongoing pressure felt by both festival-oriented content and commercially viable films has created a creative and financial divide that challenges producers and funding bodies. Bona fide investors are charmed by the charisma of award-winning filmmakers, yet still naturally require the films to make returns to sustain the business premise. Realistically, foreign accolades do not guarantee local box office. Commercially-driven films face widening audience tastes. This unprecedented scale of choice by streamers and online channels, has disrupted the traditional cinema business.

Despite these challenges, there is resilience among filmmakers, producers, and industry supporters to find sustainable pathways forward.

Government and community support remain crucial for maintaining market interest and viability. The Singapore Film Commission's continued backing, combined with private sector partnerships more often than not in the form of sponsorships, and regional co-funding opportunities, has hopefully created a diversified support ecosystem that, while not eliminating financial challenges, provides some alternatives for film production.

As H1 2025 figures are not collated, a data capture of the cinema performance in 2024 is provided by the Singapore Film Commission attached.

Singapore's status as one of the world's most expensive places to live creates a particularly acute challenge for film production. Singapore is also a city-state with the smallest population in the media consumption countries of East Asia. The country's inherent market limitations, compounded by rising costs across all sectors, have presented a raw and realistic look of sustaining film production.

Equipment rental, location fees, talent costs, and basic production services all reflect the city-state's high cost structure, making even low budget productions expensive by regional standards. The talent pool, while skilled and supplied by multiple vocational polytechnics and 2 film universities, remains relatively small, leading to situations where key personnel often work on projects across the media landscape from social media to commercials and film, thinning the catchment of specialists.

Nevertheless, resourceful groups of independent filmmakers continue to push forward with production and local storytelling through strategic partnerships. There is also a resurgence in independent guerilla filmmaking productions. Driven solely by the filmmaker’s own drive, finances and vision, a handful of films are being produced in small teams eager to prove detractors otherwise. The closely knit production community has huddled together, albeit reeling from post-covid repercussions, to make the most of relationships. Industry associations such as the Screenwriters’ Association (SAS); the Singapore Society of Cinematographers (SGSC); the Visual-audio Creative Professionals Association (VICPA) and the Singapore Association of Motion Picture Practitioner’s (SAMPP), have emerged stronger with steady membership numbers in the hundreds.

In celebration of Singapore’s 60th year of independence, filmmaker Eric Khoo teamed up with Clover Film’s Lim Teck and Akanga Films’ Fran Borgia to produce Kopitiam Days, an anthology series of short films bringing together film directors such as Raihan Halim, Ong Kuo Sin, Don Aravind,Yeo Siew Hua, Tan Siyou and Shoki Lin. A similar anthology feature film, 7 Letters was also produced at Singapore’s 50th year of independence 10 years ago. The use of film as a medium to communicate and celebrate nation-hood continues to be significant. There is no doubt that the Singapore government is invested in a Singapore film culture.

Comedy filmmaker Cheng Chai Hong readies his debut feature We Can Save the World for cinema release at the end of this year. The film presents a cinematic madcap comedy featuring familiar local faces and mayhem in what may be the country's first alien invasion film.

The influence of digital media on traditional filmmaking has become increasingly evident, with Singapore's media consumption audience being predominantly digital natives. Social influencers have embraced filmmaking as a natural extension of their content creation, though with mixed results in terms of cinema success.

Prominent influencer Ma Yi Duo donned the director’s cap and released Follow Aunty Lah in June, his debut comedy film telling the story of the dreams of a fishball seller with desires of social media fame. The film received lukewarm cinema reception but had clear support from their established social media fanbase.

Award-winning director Anthony Chen began filming We are All Strangers, his last film in his Singapore trilogy under his company Giraffe Pictures in H1. Momo Film Co. belonging to a studio framework being part of Beach House Pictures, and itself being part of TV giant Fremantle Media; evolves to cutting slate deals as a crucial player in SE Asian production. These Singapore film production houses continue to have the pick of the litter from aspiring filmmakers from Singapore and the region. Their tight and secure network within the world cinema circuit consolidates access and opportunities in the art film production realm.

Production realities inevitably shape the financing strategies that local filmmakers pursue. Singapore's film financing landscape has consistently relied on government funding, but current approaches have become more diversified. Producers now combine portfolio approaches to manage investor expectations and market limitations, cobbling together funds through sponsorship, private equity, crowdfunding, and government support.

Government support flows through the Singapore Film Commission and its parent organization, the Infocomm Media Development Authority (IMDA). Both organizations, depending on available funding pools, continue supporting film productions from local filmmakers and regional coproducers.

For filmmakers pursuing the art film festival circuit, World cinema regulars such as Akanga Films, Giraffe Pictures, Momo Film Co. and Potocol continue to clock their filmography with their formulae of development lab participations, cross-border coproduction funding, world sales collaborations and film festival strategies. This festival circuit success, while important for artistic credibility and international recognition, continues to present challenges in translating critical acclaim into sustainable local market success.

With auteur-films, the emphasis on artistic merit and festival potential is the much preferred runway for many filmmakers. Festival strategies and open-call project labs are widely sought-after by many young Singapore filmmakers. What follows are months, if not years of development which is also of no guarantee that the film will get made, let alone be profitable.

Commercially viable films increasingly rely on product placement and sponsorship integration. What began as simple brand visibility has evolved into collaborative formulas where sponsors work creatively with producers for subtle integration that serves storytelling rather than interrupting it. Producers serve as intermediaries balancing commercial requirements with artistic vision.

Producer Leonard Lai raises funds for his 3 productions primarily from this strategy, his company LGW sources and procures product companies and negotiates between filmmakers and these companies to a balanced agreeable solution. Mocha Chai Labs positions itself to be a post-producer for film projects taking equity to own an IP share for building future business.

Even with financing in place, the success of local films ultimately depends on effective distribution channels:- a sector now under immense pressure. Specialist distributors and cinemas like Anticipate Pictures and The Projector serve specialized audience tastes seeking alternatives to mainstream Hollywood programming. This market segmentation strategy creates opportunities for diverse cinema experiences, though sustainable business models remain challenging.

Late August 2025 saw the ‘world cinema’ venue - The Projector close due to rising costs, and this creates a domino effect for independent distributors, rushing to find alternative screening venues. Unfortunately, Cathay Cineplexes also ceased operations in early September due to exponential debts. The closure shocked cinema patrons and disrupted many film releases.

The Singapore International Film Festival continues to champion unique filmic voices in Singapore and within SE Asia, and has leveraged heavily on associations with the year-end Singapore Media Festival for exposure, eyeballs and resources. The Producers’ Network event that has been running for several years anchor many relationships between fellow filmmakers is a key component to incubate international co-productions.

Cinema business performance continues reflecting Singaporean audiences' preference for Hollywood blockbusters, which commanded the largest market share in early 2025. Top performers included Mission Impossible at $3.96 million, Jurassic World: Rebirth at $2.9 million, and Thunderbolts at $2.46 million. No Singapore film achieved comparable commercial success so far this year. Commercial filmmaker Jack Neo maintains his dominance in the Singaporean market of Singapore productions with his Chinese New Year release, I (AI) Want To Be Boss, which is his take on the advent of artificial intelligence. The box office reception of $1.1M fell short of the usual projections and this performance reflects broader challenges facing even established local filmmakers in competing for audience attention in an increasingly crowded entertainment landscape.

The Chinese New Year weekend also drew out two more films that did not perform well. Number 2, a sequel to the cross-dressing comedy Number 1 was released in January to latch onto the popular season earned less than half a million dollars at the box-office, which is considered lacklustre. Baby Hero the action-caper-comedy film produced by well-known actor Wang Weiliang’s Hong Pictures bowed out to even less box office numbers. The poor performance of the two films marked a downturn for local film releases.

Low box office and cinema attendance is a reality that requires acknowledgment from producers and cinema operators competing with regional markets and streaming platforms. Veteran cinema chain Cathay Cineplexes faced low attendance challenges, resulting in several cineplex closures citing building lease issues.

Shaw Cinemas and Golden Village remain cinema chain stalwarts, with Shaw completing strategic renovations of existing cinemas by end 2025.

The first half of 2025 also witnessed a significant milestone with the cinema release of a fully AI-generated feature film, Zheng Yi Sao. Produced by Singapore-Malaysian company Fizz Dragon, this AI feature attracted curious audiences of AI enthusiasts and industry sceptics alike. The story anchored itself in Singapore and the broader Southeast Asian region, exploring a historical pirate narrative depicting the life China's first female pirate leader, who in folk history, used Singapore as one of her pirate hideouts.

Despite receiving mixed reviews from critics and audiences, the film represents an important exploration of AI's potential role in filmmaking. The production process involved extensive AI-generated imagery, automated editing sequences, and algorithmic story development tools, providing learning points into both the possibilities and limitations of current AI filmmaking technology.

Pro-AI producers involved in the project maintain that these early experiments represent inevitable industry evolution rather than isolated novelties. Their perspective suggests that AI tools will become increasingly integrated into conventional production workflows, potentially democratizing certain aspects of filmmaking while creating new creative possibilities for resource-constrained productions.

Singapore's competitive advantage in Southeast Asian markets has historically stemmed from its technological infrastructure and innovation adoption. The film industry's embrace of virtual production and AI tools represents a continuation of this strategic positioning, though success will ultimately depend on whether technologically enhanced creative communities can maintain authentic audience connections and inspire meaningful cultural engagement.

Local filmmakers are now leveraging government funding for virtual production initiatives to explore how digital tools can expand storytelling possibilities beyond traditional resource constraints. The Singapore Film Commission's technology development grants have enabled productions to experiment with virtual sets, real-time rendering, and integrated digital environments that would previously have been prohibitively expensive or technically impossible for local budgets. Several virtual productions have emerged during this period, predominantly in short film format, serving as proof of concepts for longer-form content while also functioning as commercials and music videos.

So far, the learning curve associated with virtual production has been steep but rewarding. Technical crews have had to develop new skill sets combining traditional cinematography with real-time digital environments, LED wall operation, and virtual cinematography principles. This professional development has created an emerging specialist workforce that positions Singapore advantageously for both local and regional virtual production services. There are 3 virtual studios based in Singapore, namely X3D Studios, Aux Media and Oceanus Media Global. These infrastructure-driven development go beyond serving local needs since this positions Singapore as a potential service provider for regional productions seeking access to state-of-the-art virtual production capabilities.

However, the adoption of virtual production technology must be balanced against market realities and expectations. Singapore's small domestic audience size creates unique challenges for justifying the significant upfront investments required for virtual production, particularly when seeking co-production partnerships where partners may not see immediate value in premium technical capabilities for smaller market returns.

The integration of virtual production techniques has also required careful consideration of storytelling needs versus technological capabilities. Early adopters have learned that virtual production works best when the technology serves specific narrative requirements rather than being implemented for its own sake. Criticisms remain whether this support is sustainable for the industry itself, as some industry veterans recall how investments were made in 3D Stereoscopic production technology in 2010s which slowly dissipated in interest and market within just a few years.

Regarding streaming in Singapore, while platform subscriptions remain consistent, streamers do not necessarily contribute to auxiliary markets for local film producers. Most acquisitions remain small in sum due to Singapore's small market demographics. For original productions, Amazon exited the Southeast Asian original production market in 2024, and other streamers show little interest in producing local Singaporean content. With limited growth in streaming opportunities, producers increasingly look outward to international partnerships.

Singapore faces an ironic situation: its cinema industry struggles to survive while the country thrives exceptionally in other sectors such as fintech and venture capital wealth management.

Rising production costs and limited domestic market size represent fundamental constraints for producers and cinema businesses. More creative solutions must be developed from cultural perspectives rather than purely business ecosystem approaches.

Co-productions with regional and international partners have evolved from strategic initiatives to practical necessities, creating filmmaking opportunities across Southeast Asian partnerships including Thailand, Indonesia, and Vietnam. These collaborations go beyond simple financing convenience—they represent cultural exchanges that enrich storytelling while providing access to diverse markets and audiences. Strategically, these co-productions weigh into Singapore’s intention to substantiate its position of cultural diplomacy.

Government support appears inevitable and necessary for Singapore film culture's continuation, whether focused on technological capability development or talent opportunities. Global economic measurements place Singapore as one of the leading countries with the most number of millionaires. There should be opportunities for the film producers to tap Singapore’s financial sector for structured funding models.

With challenging conditions for producing, distributing, and exhibiting Singapore films domestically, Singapore-based producers are thinking beyond their domestic market. Partnerships with Southeast Asian producers and filmmakers have emerged as Singapore's most promising pathway for sustaining a film industry—not through market or financial domination, but through authentic cultural exchanges and shared creative risk-taking values.

Local filmmakers collaborate across borders to enhance business value and production capability. While Singapore's strong currency creates high domestic costs for products and services, cross-border collaboration allows the Singapore dollar to afford higher production values, making it attractive for regional partners. Collaborations with Northeast Asian producers are developing, with Singapore's larger production studios working with Korean and Japanese partners to learn about creative production values meeting international market expectations.

In the substantial future, co-productions will likely emerge as a preferred, if not an essential model of producing films on a larger scale, with better talent and with a bigger audience.

Cultural and artistic entrepreneurship begins with producers. While Singapore filmmakers win international awards and gain recognition, this doesn't automatically translate to sustaining a local film and cinema ecosystem. This responsibility falls to producers leading positive change in Singapore to a better self-sustaining industry.

Select filmmaker-producers recognize that Singapore's future cultural currency lies in screen content and facilitating opportunities. Producers like award-winning Fran Borgia of Akanga Films, Tan Si En of Momo Film Co. and Leonard Lai from Little Green White, champion collaborations and cross-regional fundraising for film projects to cultivate audience viewership. Regardless of accolades, films ultimately exist to engage the audiences through the collective cinema experience. This is the key essence of larger-than-life-storytelling.

Continuing the resilient spirit, young producers such as Angelina Bok (Screentone Pictures) and Yeo Zhiqi (Waking Life Pictures), both Busan Asian Film School(AFiS) alumni team up to co-produce guerilla low-budget films such as Berlinale Talent alumni Michael Kam’s first feature , The Old Man and His Car. Potocol delegate producer Sam Chua similarly readies her next film venture with Locarno Residency alumni Giselle Lin’s Midnight Blue Spring.

Cheng Chai Hong’s film, We Can Save The World is poised to encourage the trend of influencer-content creators making films - Annette Lee, a popular content creator and film school alumni will debut rags-to-riches story, Dream Stall end of this year. Partnering movie studio MM2 Entertainment as her co-producer, this collaboration between traditional entertainment companies and digital content creators represents a significant trend that could reshape how Singapore films are developed, financed, and marketed.

Any country maturing into nationhood with its citizens, culture, and communities deserves the chance at its own cinema, even as one of the world's smallest countries.