PETALING JAYA: Video games, once frowned upon as a time-wasting activity of young people, have evolved into a multi-billion-dollar industry, and Malaysia wants a piece of it.
The Malaysian video games (or simply gaming) market is now valued at US$786 million (RM3.68 billion), making it the third largest in Southeast Asia, behind only Indonesia and the Philippines.
And the potential is not lost on Mahadhir Aziz.
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As CEO of the Malaysian Digital Economy Corporation (MDEC), Mahadhir is charged with the responsibility to turn Malaysia into the video games production hub of Southeast Asia.
He plans to achieve his objective not by competing but collaborating with other Southeast Asian countries given that they have bigger rivals to worry about in the US, China and South Korea.
“We foresee a much bigger benefit if we work together to grow the industry,” he told FMT Business in an email interview.
Locals in the game
Malaysia already has its crop of successful games creators. One that has achieved international success is the “Simulacra” series, a detective-horror game developed and published by local developer Kaigan Games.
Its three games in the franchise have won fans of the horror genre globally.
Also on the list of games that have won an international following are “No Straight Road” by Metronomik and “Rhythm Doctor” by 7th Beat Games.
“No Straight Road” is an audio game with strong visuals that tell a story of musical cultures and ideas.
“Rhythm Doctor” is a rhythm game that has won 10 points out of 10 on the online digital video games platform Steam as well as several awards, including one at the game festival circuit.
A leg up for producers
Mahadhir said MDEC will continue to provide support for video games producers through funding and market access as well as promotions at gaming events.
Apart from that, MDEC has been running the Digital Content Creators Challenge (DC3) for years now to provide funds for new studios and to mentor aspiring games producers.
MDEC also helps to gain market access for local studios by taking their producers on international campaigns.
There is also a programme to get industry representatives to work with institutions of higher learning to raise the quality of technical education to meet their needs.
“MDEC is working on ensuring that the industry gets the necessary talent to take it further. For instance, we are working with Epic Games, Unity and other games studios to host workshops for potential talents,” Mahadhir said.
Interest from abroad
The Southeast Asia Game Industry Report 2021 shows that big names in the gaming industry are already helping to build a conducive production ecosystem in Malaysia.
They include Bandai Namco of Japan, Sony Interactive Entertainment Worldwide Studios (SIE WWS) and Streamline Studios of the US, Belgian producer Larian Studios and British games developer Codemasters.
Daryl Lau, CEO of local mobile games developer Mason Games, said the entry of players such as Bandai and Playstation should boost interest in the industry.
“It will help to cultivate the passion among young games developers, designers, artists and animators to go further,” he told FMT Business.
Challenges
Malaysia will face stiff competition from leading games developers in the US, South Korea, China and Japan who already have a strong global presence.
Apart from that, Mahadhir said, the shortage of talent is also a major challenge for emerging markets such as Malaysia. “It won’t be easy to attract and retain skilled talent needed for the gaming industry in Malaysia to thrive,” he said.
That underlines the importance of collaborating with gaming companies and organisations as well as taking part in events to gain global recognition and access to larger markets, he said.
Lau said that to achieve the objective of making Malaysia a gaming hub, the government must support the industry with financial incentives such as grants, especially for new studios and provide training for new talents.
Sherman Chin, founder of the digital entertainment agency Sherman3D, said the government has been doing a great job supporting the industry through MDEC.
Nonetheless, he told FMT Business, it would make it easier for foreign talent to transfer their expertise to Malaysia if the government could make provisions for them to work as digital nomads in the country or make work permits available to them.
“There are enough artists, designers and marketing people but we definitely need more programmers,” he added. - FMT
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