Esports, animation lead digital creative's strong momentum in 2024

KUALA LUMPUR - Malaysia's digital economy, particularly its digital creative sector, achieved significant milestones in 2024, with esports and animation spearheading growth throughout the year.

The Malaysia Digital Economy Corporation (MDEC) head and senior vice president of the digital transformation division, Datuk Fadzli Abdul Wahit said this year's success highlights Malaysia’s competitiveness in the global gaming industry and its ability to attract international business opportunities.

Citing the Malaysia Digital Industry Report (MDIR), he said Malaysia’s digital creative industry has shown steady growth, recording RM6.3 billion in revenue for 2022 including RM850 million in exports, supporting over 11,000 jobs.

Recognising the potential of esports, the Malaysian government allocated RM30 million this year to support its development and announced an additional RM20 million under Budget 2025 to strengthen the esports ecosystem, focusing on talent development and upgrading esports arenas.

Looking ahead, MDEC aims to drive innovation and expand Malaysia's digital content industry through ASEAN partnerships and the development of emerging technologies like virtual production, a strategy that aligns with Malaysia's preparation to assume the ASEAN chairmanship in 2025.

Esports making waves globally

Malaysia’s esports sector demonstrated global prominence at the Tokyo Game Show (TGS) 2024, achieving US$67.11 million in potential sales.

MDEC, in collaboration with the Malaysia External Trade Development Corporation, launched the Malaysia Pavilion at TGS, which served as a platform for 10 leading Malaysian gaming companies to showcase their innovations to an international audience.

The four-day event featured participation from 985 companies worldwide, providing Malaysian companies with opportunities to collaborate with global game developers, content creators, and technology firms.

Malaysia’s esports ecosystem, particularly in Mobile Legends: Bang Bang (MLBB), has gained international recognition. The MPL Malaysia league recorded over 630,000 peak viewers earlier this year. Malaysia also hosted MLBB’s first world championship, M1, and is set to host its next major international event, M6.

On Nov 15 this year, the Malaysian MLBB team made history by defeating the Philippines 2-0 in the Grand Final of the IESF World Esports Championship 2024 in Riyadh, Saudi Arabia.

The victorious team included Selangor Red Giants players Muhd Qayyum Ariffin Mohd Suhairi (Yums), Muhd Haqqullah Ahmad Shahrul Zaman (Sekys), Haziq Danish Mohd Rizwan (Stormie), Ilman Zareef Zulkifli (Gojes), and team JP Niners "Gold Laner" Ealtond Rayner (Lolealz).

According to a report by Stellar Market Research, Malaysia’s esports revenue is projected to grow at a compound annual growth rate of 12.6 per cent, increasing from US$6.1 million (RM26.4 million) in 2024 to US$12.6 million by 2030.

With over 14 million gamers, predominantly from the millennial and Gen Z demographics, the report highlights the growing viewership and engagement in esports. MLBB, developed by Moonton, was the most-watched e-sports game in Malaysia last year.

Global appeal attracts foreign investors

Fadzli revealed that revenue from digital creative exports continues to grow steadily, driven by strong demand from Southeast Asia, North America, and Europe.

"Through MDEC's market access programs, including the Annecy International Animation Film Festival and Market, K-Content Expo, Mipjunior & MIPCOM, Games Developer Conference, TGS, China Joy, and others, we have identified more than RM350 million in export opportunities in these markets,” he said in a recent written interview with Bernama.

Malaysian companies like Joove Enterprise, Lil Critter, Anima Vitae, Lemon Sky, and Durioo+ have secured deals with international animation intellectual property (IP) owners, distributors, and publishers to produce high-quality animation content.

This builds on last year’s success of creative works such as 'Upin Ipin' and 'Mechamato' which were dubbed in Japanese and successfully penetrated Japan-a market renowned as a global hub for anime enthusiasts.

In addition, he said 2024 marked a significant stride in Malaysia’s global standing in the digital creative industry.

A key highlight was the signing of a memorandum of understanding between MDEC and major Southeast Asian partners, including the Film Development Council of the Philippines, the Thai Animation and Computer Graphic Association, and the Vietnam Digital Content Creation Alliance.

Hub for creative digital activities

The Digital Content Ecosystem (DICE) action plan aims to position Malaysia as a leading regional hub for digital creative production by 2030 with a comprehensive strategy focused on talent development, business support, and IP commercialisation to build a dynamic and competitive industry.

Malaysia is home to over 300 digital content studios and has successfully developed more than 180 original IPs in animation and digital games.

According to Fadzli, MDEC is actively exploring new markets, including the Middle East, while also strengthening regional ties through ASEAN partnerships.

Outlook for 2025

Fadzli noted that as Malaysia prepares to host the ASEAN Summit in 2025, MDEC is prioritising initiatives centred on regional collaboration to advance the digital content industry.

"MDEC will organise the ASEAN Digital Content Festival bringing together creators, industry leaders, and stakeholders to position Malaysia as a leading hub for digital content in ASEAN,” he said.

Additionally, he said MDEC is committed to expanding Malaysia’s digital content industry by focusing on the high-growth potential of virtual production-the advanced field integrates digital technologies with traditional production, enabling the creation of realistic and immersive content through real-time graphics, extended reality, and artificial intelligence.

Virtual production is poised to benefit sectors such as animation, digital games, film, and metaverse development, making it a vital area of focus for 2025.

Furthermore, in 2025, Malaysia’s Digital Creative Blueprint will be implemented under the 13th Malaysia Plan, further solidifying the nation’s commitment to strengthening its digital economy and ecosystem. - BERNAMA