Malaysia’s path to become South-East Asia’s gaming powerhouse

The country must not only cultivate and retain its skilled workforce but also secure adequate funding for innovative game development 

by VEISHNAWI NEHRU 

THE gaming industry in Malaysia, often overshadowed by traditional sectors, is rapidly emerging as a powerhouse poised to drive the country’s future. 

With a burgeoning talent pool and an evolving educational landscape, the potential for Malaysia to become a leading player in South-East Asia’s gaming market is more promising than ever. 

However, to unlock this potential, the country must not only cultivate and retain its skilled workforce but also secure adequate funding for innovative game development. 

As Malaysia stands on the brink of a gaming revolution, the question remains: How can it harness this momentum to create captivating games that resonate both locally and globally? 

Asia Pacific University of Technology and Innovation (APU) head of school Assoc Prof Dr Tan Chin Ike said the talent pool for the gaming industry in Malaysia has seen significant evolution over the years, especially in mobile, online and video gaming. 

He pointed out that approximately a decade ago, Malaysia had only around 30 game companies. 

Today, that number has surged to about 85 studios, including nine international ones from countries such as the US, Belgium and Japan. This upward trend indicates steady growth in the industry. 

“While various factors, such as global depression and inflation, could impact growth, Malaysia has the potential to emerge as a hub for game development in South-East Asia,” he told The Malaysian Reserve (TMR) at the Malaysia Digital Content Festival Biz Day 2024 recently. 

He added that the country has long been recognised as an art capital in the region, particularly in-game art and is now advancing in game programming, technology and design. 

The establishment of Electronic Arts’ FC Mobile team in Malaysia highlights this potential for full-scale development opportunities. 

Challenges in Education and Skills Development

Tan also stressed that essential skills for Malaysian game developers include strong fundamentals in game art and programming, along with attention to detail and process optimisation. 

For higher-level positions, expertise in game engines and technical artistry is crucial. “To nurture and retain gaming talent, Malaysia must develop a comprehensive talent pipeline that extends beyond university education. 

“Raising awareness about the local gaming industry is crucial, as many parents are unaware of the opportunities available in this field,” he said. 

Moreover, Revolution Industry game director Saranpat Sereewiwattana said in Thailand, the gaming industry focuses on working in small teams and producing projects during a student’s university years. 

“By the time they graduate, they have already worked on multiple titles, giving them a head start,” he added. 

However, Sereewiwattana stressed that English literacy remains a barrier in Thailand, as many graduates struggle with communication in English, which hinders their ability to coordinate in international settings. 

“This issue often requires studios to appoint specific staff members to handle communication,” he added. 

Agate chief strategy officer Cipto Agung said working in the gaming industry is seen as a privilege, often leading people to accept lower salaries because they love what they do. 

“So, either you work for less money in an industry you enjoy, or you take a higher-paying job in a field you do not like, like developing apps. This is why we see cycles of layoffs and hiring. 

“People still choose gaming even though job security is often lacking, especially in countries like the US, where labour laws are not as protective. In contrast, some countries, like Indonesia, offer better job security due to regulations,” he said. 

Cipto added that the government needs to step in because academia has traditionally been slow to adapt. 

“This is not just a gaming issue; artificial intelligence (AI) and other tech sectors are moving so quickly that even a six-month delay can make programmes obsolete. So, the educational system must evolve at a faster pace,” he stressed. 

Adapting to Funding Challenges in a Crowded Market

Xsolla strategic planning VP and GM Justin Berenbaum said as the gaming industry navigates a challenging funding landscape, establishing strong connections with customers is important to maintain direct relationships. 

The sheer number of games being released is staggering, with approximately 18,000 titles expected in 2023 across various platforms. However, only about 1,000 of these are projected to turn a profit. 

“This reflects the transition from a growth market to a more mature one,” he said.

Despite a growing global market, playtime has dropped by 26% since its peak in 2022. “As more games are released, it becomes increasingly challenging to capture attention and make sales,” he said. Berenbaum said while indie games are experiencing a renaissance, with a 5% increase in console gamers playing them, this also means heightened competition for developers seeking funding and visibility. 

He added that the impact of AI on the industry is another topic of concern. 

“AI is not new; we have been using it in games for years,” he said. 

He stressed that understanding how to leverage AI effectively will be crucial for developers looking to succeed in a competitive environment. 

Regarding market trends, Berenbaum noted that 35% of games seeking funding on their platform are PC-only, while mobile games are becoming increasingly difficult for indie developers to penetrate. 

“Mobile games are dominated by large companies, making it tough for indie developers to break through,” he said. 

Berenbaum stressed that building a game business is a long-term endeavour. 

He noted that better games are emerging from this region and there is a significant opportunity for developers in Malaysia. 

Rajat collaborates with psychiatrists and corporate training experts to understand harassment and its impact

Embracing Player Feedback to Enhance Gameplay

Streamline Studios’ worldwide studios head Stefan Marcus Baier said when children were told what to do in the Open World Upin and Ipin game, the children just wanted to play around and do their own thing. 

He noticed that young players’ instinct to explore helped shape the game they are developing, illustrating the importance of player feedback in creating an engaging open-world experience. 

Baier mentioned that initially, the game was linear, but as the children roamed freely, it became clear that players desired more freedom. 

“We worked hard to expand it because the kids wanted more freedom. This shift led to significant design changes, including overcoming technical challenges. 

“The game’s framework evolved based on the children’s input, demonstrating how user feedback can transform a project,” he explained. 

He also said one major aspect of the game is the camera, which dictates what players can see and how the game loads data. 

After incorporating player feedback, the developers removed limitations that players found frustrating, especially those familiar with popular titles like Red Dead Redemption and Grand Theft Auto. 

“We aimed to make everything discoverable and interactive,” he said. 

Baier explained that the game features activities that change based on the time of day, ramps, scaffolds and interaction points that enhance realism. 

“Players can even control elements like weather and time. We built-in features like hidden hiking trails, collectibles and wildlife to make the game feel more alive,” he said. 

Moreover, Streamline Studios creative director and co-founder Renier Banninga said balancing creativity with accuracy was crucial in designing the game’s world. While ensuring the map was canonically accurate, adjustments were made to improve gameplay flow. 

High-traffic areas were strategically identified for quests, allowing for future expansions. 

He added that the elimination of loading screens was another key feature that contributed to the game’s immersive experience. 

Players can explore without interruptions, a decision based on player feedback. 

“We optimised materials and drew calls to keep performance smooth,” he said. 

Exploring Moral Complexity in Interactive Narratives

Gamitronics CEO Rajat Ojha said in a video game, the player has the power to change the outcome. 

This interactive nature gives players a sense of agency, enabling them to confront challenges and navigate moral dilemmas that reflect real-world issues. 

He mentioned that the video game he is currently working on, Project Elsinore, features a corporate environment filled with contrasts, blending glamour and mundanity, as well as technology and human weakness. 

The narrative delves into themes of harassment, deception and ethical dilemmas. 

“We designed a world where harassment is not the focal point but a backdrop, subtly woven into the fabric of the story. This allows players to reflect on these issues without feeling overwhelmed,” he said. 

Rajat explained that Cassandra, the protagonist, embodies this complexity. Initially a champion of positive change, she becomes entangled in the darker aspects of the corporate world, grappling with her moral ambiguity. 

As players navigate the story, they are confronted with the harsh realities of corporate life, where the subjective nature of truth and the prevalence of harassment blur ethical lines. 

“We focus on character development, creating morally complex figures that challenge players to consider the ramifications of their actions,” he said. 

The gaming industry has long faced scrutiny over its treatment of women, particularly following the #GamerGate controversy. 

With women making up 53% of gamers but only 16% represented in the industry, this imbalance raises questions about inclusivity and representation. 

Rajat collaborated with psychiatrists and corporate training experts to understand harassment and its impact. 

“This led to the creation of a project called ‘SHE,’ focusing on workplace dynamics and the subtleties of harassment,” he said. 

The game’s mechanics reflect advancements in AI technology, allowing non-playable characters to remember players’ choices, thereby enhancing the realism of the experience. 

This innovative approach aims to create an emotional connection with players, similar to the impactful narratives found in titles like Heavy Rain. 

Rajat said in Project Elsinore, players will face high-pressure situations that compel them to make morally ambiguous decisions, challenging their values and perceptions. 


  • This article first appeared in The Malaysian Reserve weekly print edition