According to Niko Partners, a renowned Asian games market intelligence company, there are more than 300 million gamers across Southeast Asia (SEA), including in Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. As a rapidly growing sector in Southeast Asia, the gaming industry has positioned Malaysia as a key player in the region. With an average growth rate of 8.9% year-on-year (YoY) since 2020, the country’s involvement in this burgeoning industry cannot be understated.
The Allure of E-Sports Careers for Youth
E-sports offers a variety of career paths, many of which extend far beyond being a professional gamer. This diversity in careers reflects the many facets of the e-sports ecosystem, offering opportunities for youth to thrive in fields they are passionate about.
Associate Professor Ting, Dean of the School of Computing and Creative Media at the University of Technology Sarawak (UTS) and Tiffani Lim of the Athletes Committee at the International Esports Federation (IESF) similarly remarked on the popularity of on-screen roles such as athletes, commentators, and streamers, which many youngsters aspire to. The visibility of these positions drives their appeal. Meanwhile, Lim added that behind-the-scenes roles within event companies and team organisations, such as venue operations, referees, and production, are equally critical to the industry’s success.
As a prominent figure in Malaysia’s e-sports scene, Lim described how the industry revolves around events and tournaments. In addition to professional players, opportunities abound in event production, social media management, analysis, and even coaching. Lim highlighted that many retired e-sports athletes shift into coaching, broadcasting, or content creation—careers that allow them to leverage their deep knowledge of the field without stepping away from the sport they love, regardless of whether they are tied to any particular organisation.
Malaysia’s Role in Southeast Asia’s Game Industry Growth
In Malaysia, the number of e-sports enthusiasts is expected to rise significantly, from 4.8 million in 2020 to 7.8 million by 2024. This growing community reflects the country’s increasing prominence within the global e-sports arena.
Associate Professor Ting noted, “Malaysia has become a key player in the Southeast Asian e-sports scene. The industry spans beyond professional gaming, encompassing streaming, event management, marketing, and related tech industries.”
Tiffani Lim of IESF, echoed Ting’s sentiment, emphasising the difficulty in quantifying e-sports’ economic impact. However, she observed that Malaysia’s homegrown e-sports athletes have gained global recognition, repeatedly making headlines for their podium finishes in international competitions.
Local leaders, such as Sibu MP Oscar Ling, have also recognised the rising influence of e-sports. At an e-sports workshop in Sibu earlier this year, he remarked on the growing number of e-sports followers and the lucrative prize pools offered by international tournaments.
“This is a pivotal step forward in legitimising e-sports and providing structured support for athletes and organisations,” Ling said.
The rapid growth of esports and gaming in Southeast Asia has since sparked substantial attention and investment. Malaysia is emerging as a leading market in the region, actively incentivising this industry. Game industry stakeholders—including the government, telecom companies, and tech organisations—are launching initiatives to nurture games and esports talent.
The Malaysia Digital Economy Corporation (MDEC) plays a pivotal role, providing incentives and support to game creators, encouraging the development of game studios across the country. Some of the notable programs initiated to foster this growth include:
- Digital Content Grant and Digital Content Creators Challenge: Encourage game development and digital content creation.
- Pemangkin IP360 Metaverse Initiative: Supports innovation within the metaverse space.
In esports, Malaysia’s efforts to support and formalise the sector include amending the Sports Development Act 1997 to recognise esports officially in 2023. Additionally, the National Esports Development Guidelines (NESDEG) were launched by Youth and Sports Minister Hannah Yeoh and the Esports Integrated (ESI). This set of guidelines is among the first in the region, aiming to protect esports players and provide guidance for tournament organisers.
A further boost to the industry came when Malaysia’s Ministry of Finance allocated MYR 20 million (USD 4.5 million) in 2020 for esports development, and then later MYR 30 million (USD 6.3 million) in the 2023 budget to encourage foreign games and esports companies to invest in Malaysia.
The Importance of Supporting Games and Esports
Understanding the market context is crucial when analysing why Malaysia and other Southeast Asian countries are supporting the growth of the games and esports industry. Younger generations, particularly Gen Z and Gen Alpha, are growing up in a digital-first world, necessitating new skill sets like digital communication, creativity, critical thinking, collaboration, and problem-solving—all of which can be nurtured through video games. Beyond skills development, the gaming and esports industries create valuable job opportunities in various roles, each of which holds considerable potential for growing the country’s potential as a game development hub.
Esports athletes in Malaysia have also garnered significant prize money from major tournaments, with Malaysian Dota 2 player Yap Jian Wei (xNova) earning over USD 2 million, making him the highest-earning player in Southeast Asia.
The game development scene in Malaysia has also expanded, with local studios contributing to globally renowned AAA games like Cyberpunk 2077, Final Fantasy XV, Elden Ring and Street Fighter 6, attracting foreign investment as well. Studios like Lemon Sky Studios and Common Extract have been acquired by international companies like Australia-listed game developer iCandy Interactive for USD 30 million and Swedish studio The Gang for an undisclosed amount respectively, boosting Malaysia’s reputation as a game development hub.
Recognising the industry’s potential within the economy, the Ministry of Youth and Sports of Malaysia (KBS) has laid out a five-year strategy (2020-2025) to develop the esports industry, which includes significant investments by the government to establish the country as a regional esports hub. It outlines the development of esports academies, infrastructure, and events, leading to the establishment of world-class facilities like the Malaysia Esports Arena in Kuala Lumpur.
The Malaysia Electronic Sports Federation (MESF) acts as the official regulatory body overseeing esports, organising tournaments such as the LIGA eMAS, which saw significant prize pools and participation in popular titles like Dota 2, Tekken 7, PUBG Mobile, Valorant and other global titles.
Malaysia has also achieved success on the global stage, winning three gold medals at the Commonwealth Esports Championship 2022. Major breakthroughs in the industry include AirAsia’s ownership of an esports team, making it the first airline in the world to do so, and the opening of EBN Esports City, the largest esports facility in Southeast Asia.
Sarawak’s Potential in Esports and Game Development
Sarawak is positioning itself as a key player in esports education and development. According to Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi, Sarawak leads the introduction of esports education within TVET (Technical and Vocational Education Training) institutions. The collaboration between Centre for Technology Excellence Sarawak (Centexs) Commercial and Human Resource Development Corporation (HRD Corp) underlines Sarawak’s commitment to advancing the esports agenda.
Sarawak’s esports athletes are also making waves, with the eRacing team securing a historic silver medal at the 21st Malaysia Games (Sukma XXI). With further support from leaders like Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak is set to become a major player in both game development and esports on the global stage.
Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong similarly believes the state’s unique blend of cultural heritage and technological growth provides the perfect environment for creating games that mix traditional wisdom with modern innovation.
“This vision is all about changing the game development scene by sharing knowledge and using the latest technology. Our mission is just as ambitious. We aim to boost the gaming industry by encouraging the exchange of ideas, showcasing new technologies, and celebrating gaming culture through educational sessions. This is not just a goal. It is a promise to take the gaming industry to new heights.”
The involvement of MDEC and government initiatives is expected to help local developers access international markets and drive economic growth.
Challenges to the Growth of Esports in Malaysia
While the gaming and esports industry is growing, challenges remain. Globally, the industry has experienced job insecurity, especially following layoffs due to overstaffing during the pandemic. There are also concerns about the financial stability of esports athletes, many of whom struggle to support themselves on prize money alone early in their careers.
There is also generational skepticism, with older people viewing video games negatively, often linking them to addiction and poor social skills. Concerns over game features like loot boxes—likened to gambling—have led countries like China and Korea to implement screen time limits for minors, with mixed reactions.
While Malaysia’s gaming scene continues to attract investments, issues such as harassment scandals and religious concerns have highlighted the need for further collaboration between the government and industry stakeholders. Greater public education on the positive aspects of gaming and steps to mitigate negative impacts will be essential for the industry’s sustainable growth.
Sarawak e-sports team manager Darren Kueh echoed the budding state of Sarawak’s esports industry as many local athletes still lack exposure to competitions.
“Instead of sending our players overseas, we try to bring international tournaments to Sarawak. We want athletes from other countries like Brunei, Indonesia and Singapore to be here and give our athletes more exposure.”
Malaysia’s dynamic approach to fostering the growth of its games and esports industry reflects its commitment to tapping into the potential of this rapidly expanding sector. Through targeted policies, government support, and collaborations with key stakeholders like MDEC, Despite challenges such as job insecurity in the global industry and lingering generational skepticism, Malaysia’s forward-thinking policies and investments intends to lay a solid foundation for sustained growth.
As Malaysia continues to nurture its gaming and esports talent, it is poised to unlock significant economic opportunities, create jobs, and elevate its global reputation, ensuring that both the gaming and esports sectors contribute meaningfully to the country’s digital economy.
References
- “Horizon : A Perspective of Malaysia’s Digital Economy – Malaysia’s Role in Southeast Asia’s Games Industry Growth”
- “KBS Strategic Plan for Esports Development 2020-2025”
- “Esports: From hobby to global phenomenon”
- “Sarawak has game development potential — deputy digital minister”
- “Sarawak leads nation in esports education through TVET, says DPM Zahid”
- “Sarawak eRacing duo makes history with first-ever eSports silver at Sukma XXI”
