Digital content to see 10%-15% increase in revenue

By KEVIN WONG / Pic By TMR File

REVENUE for Malaysia’s digital content industry, which reached RM7.6 billion in 2016, is expected to increase at an average of between 10% and 15% annually in the coming years.

Malaysian External Trade Development Corp (Matrade) exports promotion and market access division senior manager Azahar Mohamed said of the total revenue recorded in 2016, RM1.17 billion was contributed by the exports, mainly from the animation development and outsourcing of video games segment.

“We expect the revenue to increase based on the activities that we have participated in. Last year, Matrade took part in the export exhibition at Tokyo Game Show 2017 (TGS) where we brought 14 video games and animation development companies.

“The companies managed to record total sales from RM1 million to RM7 million during the exhibition. We will be participating again at TGS 2018,” he told reporters at the Trade Facilitation Workshop for Malaysian Micro, Small and Medium Enterprise on Digital Content Industry in Kuala Lumpur yesterday.

The workshop is a collaborative efforts between Matrade, the South Korean inter-governmental agency, Asean-Korea Centre (AKC) and Malaysia Digital Economy Corp.

It is aimed at further promoting the exports of local digital content to South Korea.

Azahar said apart from providing a knowledge-sharing platform on South Korea’s experience and best practices in the game and animation developing industry, it is also aimed at enhancing Malaysia- Korea trade of digital content through one-on-one business meetings.

“It is an ideal platform to help Malaysian companies not only understand the business trend in this high-value industry, but also strategies to access South Korea through partnerships and co-productions,” he said.

Azahar added that the workshop is also an initiative to strengthen the position of Malaysia as a leader in intellectual property creation in South-East Asia, as well as promote the country as the regional outsourcing destination for animation and video games.

Among the services sector in the country, the digital content industry is considered one of the fastest-growing industries with high potential.

He said the 11th Malaysia Plan (2016-2020) has emphasised on the importance of developing and promoting knowedge-based digital economy industries, including digital content, for economic growth and national development.

“Thus, today’s workshop supported the plan in attracting developers and publishers in both game and animation industries, to increase the capacity and capabilities as well as to raise global market access,” he said yesterday.

Azahar said Matrade would also continue to spearhead the promotion of Malaysian goods and services in the international market.

“We are looking at Japan, China, Taiwan and any market which shows potentials,” he said. Meanwhile, the South Korean delegation, which was led by AKC secretary-general Kim Young-sun, comprised indust ry players which included Gyeonggi Centre for Creative Economy and Innovation, Caret Games Co Ltd, Idreamsky Co Ltd, Reality Reflection Co Ltd, Smilegate Holdings and K-Production Co.