Not quite. Our animation films are way ahead.

Upin Ipin has a massive following in Indonesia. Some of them even believed that Upin Ipin is an indonesian product! Not to mention those that pissed off because Upin Ipin is influencing younger Indo generations to speak with Malay dialect. Upin Ipin has spawned several films to the ASEAN market.

Then there's Boboiboy, and Ejen Ali, both have big followers and have been translated into many languages.

Mechamato is a new competitor, and won Anime fan Award in Japan, the 1st ever non-Japanese animation to win this.

Didi & Friends is also a big amongst toddlers and pre-schoolers, and their recent film was a hit in Msia, Indonesia and SG.

Back to the question at hand, I do agree most Malaysian films only caters for locals and have little value outside our community. But our animation industry is booming and we're dominating ASEAN.