AMERICAN entertainment production company Lucasfilm is winding down its Singapore operations in response to challenges facing the industry and changes in business conditions.
The global media industry is facing disruption from rapid technological advancements, while entertainment studios are coping with challenges relating to talent and profitability, said the Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) in a joint statement on Tuesday (Aug 15).
Industrial Light & Magic (ILM), Lucasfilm's visual effects and animation studio, has been operating in Singapore since 2005.
At the time, EDB was wooing and offering subsidies to multinational entertainment heavyweights like Lucasfilm to set up shop here, with the rationale of having the production companies transfer technical know-how to local studios.
Lucasfilm sold its Sandcrawler building, located within the Fusionopolis cluster in Buona Vista, to US private equity giant Blackstone Group in 2021. The company had opened the facility in 2014, and it featured a 100-seat theatre and digital production operations.
The state-of-the-art complex had housed ILM and served as Lucasfilm Singapore's regional headquarters.
In their joint statement, EDB and IMDA noted that Lucasfilm had developed "world-class digital animation talent for the industry through knowledge and skills transfer" during its tenure in Singapore.
"Our Singaporean (talents) have worked alongside and learned from experienced producers, enabling them to develop their skills and play on the world stage," they added.
Through Lucasfilm, Singaporeans worked on Hollywood blockbusters such as Jurassic World Dominion and Marvel's The Eternals, and many have gone on to work for other entertainment giants such as Netflix, or started their own companies, said EDB and IMDA.
"While the global media industry undergoes transformation, Singapore remains a valuable and attractive hub for global media companies who are committed to growing in a competitive and innovative ecosystem," said the agencies.
When approached, Disney — Lucasfilm's parent company — referred The Business Times to its statement to CNA, in which it said that ILM will be consolidating its global footprint and winding down its Singapore studio over the next several months due to "economic factors affecting the industry".
ILM is giving employees as much notice as possible and is offering opportunities to relocate to one of the company's other studios in Vancouver, London, Sydney and Mumbai.
EDB and IMDA said Lucasfilm and relevant government agencies are assisting the affected employees to find roles in other companies.
"The technical and creative skill sets of these employees — who are trained across roles such as designers, tech engineers and tech support staff — continue to be in high demand, both within the broader media industry, and also in other industries that are going digital," they added.
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This article was first published in The Business Times. Permission required for reproduction.
