The Malaysian online gaming market is currently worth approximately US$633 million per year, which places it in 21st place in the world. It is estimated that this brings in approximately $168 million to Malaysian revenue, making it an extremely valuable asset.
With over 14 million players, the industry enjoys strong support from those who want to view and gamble on it.
Gambling in Malaysia is a bit of a grey area with outdated legislation failing to properly cover the rise of online betting sites. This means that there is currently no prohibition of online gambling in the country, which is great news for eSports players, fans, and other online gaming communities (source: https://www.business2communitymalaysia.com/en/gambling/malaysia-online-gambling).
Sportsbooks provide customers with the opportunity to bet on a variety of sports, including soccer and baseball, as well as eSports. Many of these sites also allow fans to live stream the top eSports events as they happen, and bet on the action live as the game progresses.
The eSports betting market has shown the most significant growth in recent years and major titles that are covered include Dota 2, LoL, and CSGO. The aforementioned live streaming of these events and the wide range of betting markets has undoubtedly helped the industry’s growth. The sector’s growth has also been encouraged by the government.
39% of players are also considered cross-platform gamers. This means that they split their time between console, PC, and mobile gaming. This has also benefitted a range of areas, from telecoms and tech providers to software developers. Meanwhile, 59% of streamers also watching other videos for gaming advice.
While streaming eSports games online is popular, the events are typically held in public arenas and draw large crowds. This helps to boost tourism and the local economy around venues, as well as creating jobs specific to the industry.
Malaysia is hoping to make use of its infrastructure to accommodate further growth and become the South East Asian hub of eSports.
Asian Pacific University’s head of computing Dr Tan Chin looks at the projected growth of the global eSports industry, which could reach a value of $6.75 billion in 2030, and believes that Malaysia is well-placed to take advantage of this boom.
The Malaysian government has even pledged a budget of RM13 million (approximately $2.8 million) to further develop the eSports industry.
One of the most significant factors to positively affect the Malaysian eSports market is the implementation of 5G connectivity. This has greatly improved the ability of gamers and viewers to engage with the eSports community. Reports that the country is on track to reach its 80% 5G coverage target by the end of 2023 will further facilitate growth.
Support from the Malaysian government will be crucial to the long-term success of transforming the area into a Southeast Asian eSports hub, and the country also has support from one of the world’s leading MOBA (mobile multiplayer online battle arena) developers, Moonton Games.
Following on from Malaysia hosting the 2022 Mobile Legends Southeast Asia Cup, Moonton Games plans to host other events in the country. This commitment to the Malaysian market will help to focus the attention of the global online gaming community towards it.
Moonton Games is also branching out into other sectors and hopes to secure sponsorship deals with global brands like Garnier, Hotlink, and Nescafé. These collaborative partnerships will benefit all parties involved and help to expand Malaysian eSports.
The lure of prize money has encouraged Malaysian competitors, making it one of the strongest eSports regions in the world. Across a total of 1239 tournaments, players have earned prize money of over $18.7 million. These potential earnings drive eSports and ensure competitive fixtures that are popular among viewers and gamblers.
As the industry continues to grow, so will the prize pots and viewing figures. A number of industries that work alongside the eSports sector will get a financial boost from this, as will the Malaysian economy as a whole.
