- No funding from MDEC, which will facilitate in getting Malaysian LPs to invest
- Boost to digital content industry which had cumulative US$20.3bil sales from 2011-2023
In a boost to Malaysia’s digital content ecosystem, which generated cumulative revenue of US$20.31 billion (RM87.25 billion) over a 13-year period from 2011 to 2023, Malaysia Digital Economy Corporation (MDEC) and CICC Capital Management Co, Ltd (CICC Capital), inked an MOU to establish the China-Malaysia Gaming and Digital Content Fund, with a target fund size of US$100 million (RM429 million).
According to MDEC, it will facilitate in getting Malaysian Limited Partners (LPs) to invest in the fund, targeting to contribute between 30%-50% of the fund size.
CICC Capital is the private equity investment arm of Hang Seng listed China International Capital Corporation Limited (CICC), a China government owned investment bank, with a market cap of US$17.80 billion (RM76.45 billion).
Minister of Digital, Gobind Singh Deo who attended the MOU, said that exports made up RM11.18 billion of the RM87.25 billion revenue from the 2011 to 2023 period, with domestic sales at RM76.07 billion. The sector also attracted RM80.26 billion in investments.
[RM1 = US$0.233]
Gobind said the fund is set to further strengthen Malaysia’s digital content industry and showed that global interest and confidence had grown in Malaysia as a gaming hub in this region.
According to MDEC, the digital content industry has created 8,200 jobs as of 2023 with over 300 homegrown digital content companies, contributing an estimated RM1.4 billion to the national GDP in 2023.
Meanwhile, several creative content companies have achieved global acclaim. 7th Beat Games became the first Malaysian studio to win an Independent Games Festival (IGF) Award 2024 in California, US for their game ‘Rhythm Doctor’. Internationally- acclaimed animation titles such as Upin & Ipin, Ejen Ali, Mechamato, and Didi & Friends have been received well globally, elevating the nation’s creative reputation and driving export growth.
In addition, Malaysian game studios such as Passion Republic and Glow Production are making their mark in the global gaming arena, contributing high-quality game art and co-development expertise to blockbuster titles including Spider-Man Remastered, Baldur’s Gate 3, and Elden Ring.
At the MOU, Gobind expressed confidence that Malaysia would be able to develop into a gaming hub in the region. He said this could be achieved through new partnerships between Malaysian companies and those in other countries which have thriving gaming industries and ecosystems.
Indeed, that is already happening. In Feb, Les’ Copaque Sdn Bhd, creators of Upin & Ipin, partnered with US gaming company, Streamline Media Group to jointly publish the Upin & Ipin Universe, the first open-world console and PC game based on the Upin & Ipin franchise.
The establishment of the China-Malaysia Gaming and Digital Content Fund is expected to develop the sector further and faster towards realising Malaysia’s plan to become a leader in the gaming sector worldwide, he added.
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