MIM, which dictates that 80 per cent of total production costs should be spent in Malaysia, is expected to be raised, squeezing out foreign productions companies and talent.
An announcement is expected from the Ministry of Information next week.
The MIM regulations, first drafted in the 1980s, require commercials to be produced by and feature Malaysian citizens, while filming, film processing and post-production must all be done in Malaysia.
Several leading production companies in Indonesia suspended operations on Monday - at the request of their foreign clients - following news of the restrictions.
