Malaysia’s gaming industry set to attract investments from Japan
27 Sep 2024
Malaysia’s gaming industry is positioned for an increase in foreign investment, especially from Japan, according to the Malaysia Digital Economy Corporation (MDEC).
MDEC said this was due to lower business costs, a skilled talent pool, a robust network of Malaysian studios, and strong government support.
Its head of digital transformation, Datuk Fadzli Abdul Wahit, said MDEC’s role is to attract these foreign investors to meet, interact, and collaborate with Malaysia’s best companies.
“We spoke with a lot of Japanese companies. They acknowledge that Malaysia’s talent pool, compared with other countries, is widely accepted because of the knowledge, skills and competencies within our gaming industry.
“We also have a strong network of Malaysian studios that investors can work with, supported by a comprehensive ecosystem that allows for the development of the gaming industry moving forward,” he told Bernama.
Fadzli said the government also offers support through the Malaysia Digital status, which include tax incentives for foreign knowledge workers and considerations related to the time zone.
“It might be a small thing, but having a time zone allowing for a standard development cycle in the gaming industry is also an advantage for the gaming industry in terms of foreign investments. For example, the time zone difference between Japan and Malaysia is just one hour,” he said.
Fadzli noted that the presence of foreign investments, including PlayStation Studios, EA (Electronic Arts), and Bandai Namco Studios, serves as a testament to why Japanese companies choose to invest in Malaysia’s gaming industry.
He said Malaysia’s gaming industry has experienced significant growth over the past decade, evidenced by the increasing number of studios being established and the development of various intellectual properties (IPs).
“We have seen strong growth over the last 10 years. Regarding the average growth rate over the past five years, the gaming industry in Malaysia has already seen a peak of between 8%-9% compound annual growth rate.
“The growth for the past five years has contributed to more than US$100 million being generated for Malaysia,” he added.
Regarding export growth, Fadzli said there has been a significant increase of around 32% in the export market between 2014 and 2022, reflecting the ability of companies to offer export services.
MDEC anticipates the local gaming industry to grow at least five times over the next three to five years, fuelled by creating new IPs, strengthening existing opportunities, diversifying market access, and encouraging transmedia to co-create IPs.
Source: Bernama
