Does Malaysia Have What It Takes to Become a Future Video Game Hub?

Introduction

The global gaming market is a multi-billion dollar industry experiencing significant year-on-year growth. Valued at over USD 280 billion in 2023, a projected compound annual growth rate of 13.1% will result in a value of over USD 665 billion in 2030.

These figures are great news for the key players in the industry and the locations where they are based. Nations that have created an infrastructure and legislation to welcome tech businesses have benefited as the market has grown in recent years.

Malaysia is one of these countries and is positioning itself to welcome key players in the gaming market to enjoy significantly more growth.

How Malaysia Positioned Itself as a Leading Tech Hub

Many global tech hubs happened by chance as businesses that complemented each other naturally grew in certain areas like Silicon Valley in San Francisco. Malaysia is different as it became an Asian tech hub through careful planning and investment. During the late '90s, the Malaysian government had the foresight to recognize the growing value of tech. $100 billion was pumped into the digital infrastructure to create the MSC (Multimedia Super Corridor).

Malaysia also attracted major tech companies by implementing digital free trade zones that minimized tax and customs costs for businesses that operated in the area.

As a member of the ASEAN (Association of Southeast Asian Nations), Malaysia also enjoys close ties with other member nations, providing businesses with access to over 600 million consumers.

Malaysia’s Gaming Community

The existing Malaysian infrastructure makes it the perfect place for gaming companies to base themselves. The country already has a thriving and growing gaming market with more than 14 million players generating about USD 633 million every year. This puts Malaysia just outside the top twenty gaming locations in the world, but that could be about to change if plans go ahead to invest further in the market.

The Malaysian gaming market has seen significant growth in the esports and gambling markets. Online gambling in Malaysia is particularly popular with operators investing in the latest AI, VR, and AR technologies to provide their customers with the most interactive and immersive gaming experience possible.

The benefit of gambling operators investing in this technology is that it helps them to compete and appeal to new and existing customers in a highly competitive market.

The eSports market has also seen a boom in interest among players and fans as the industry transforms into a spectator sport that is battled out in front of live audiences and streamed around the world.

Improved connectivity is allowing the biggest streamers and those looking to break into the industry to reach their followers and enjoy strong connections for online gaming.

This market provides existing and emerging gaming companies with a ready-built audience. This alongside the existing infrastructure and legislation provides the ideal habitat for the gaming industry to flourish.

2024 Developments

As well as the existing benefits mentioned above, the government is going to even further lengths to attract companies and create an Asian video game hub. Fahmi Fadzil, a minister at the Communications and Multimedia Ministry pledged RM30mil of the 2024 budget to attract top gaming industry talent to the country.

South Korean gaming giants NX3 Games have already discussed the possibility of moving some of their operations to Malaysia. They announced plans to open a regional office in the Malaysian capital of Kuala Lumpur and have hinted at a possible collaboration with the MDEC (Malaysia Digital Economy Corporation).

With bases in South Korea, China, and the USA, Malaysia is hopeful that it will be the next location for the company.

Should NX3 Games complete its move to Malaysia, it will be a major boost in attracting other companies to follow suit.

Malaysia had already invested in the film industry and welcomed a number of film companies after investing in studios. The government is hopeful that this success will also bolster its chances of welcoming some of the biggest gaming companies in the world.

Further investment and support from consumers will be key to the plan. The many benefits that gaming companies can enjoy will also be a big draw to those looking to expand operations.