KUALA LUMPUR – Esports have long been part of video game culture, evolving from a hobby in the late 2000s to a competitive spectator sport.
By the 2010s, game developers were actively targeting the professional esports subculture, transforming esports into a booming industry.
In Malaysia, this growth has nurtured top talents who have won medals and brought pride to the nation on numerous occasions.
Being an industry that has contributed a significant amount of revenue over the years, it was reported that esports started seeing substantial revenue for the government in 2018, with a total of USD 100 million (RM 470 million) gained that year alone.
According to the Malaysian Investment Development Authority (Mida), it was predicted that the revenue would expand at a 10.9% compound annual growth rate between 2018 and this year, with a market volume of USD 168 million (RM 791 million) by this year.
Due to its immense potential, esports has seen a significant increase in allocations by the government for its growth and development, with a total of RM 108 million (RM 10 million in 2019, RM 20 million in 2020, RM 15 million in 2021, RM 20 million in 2022, RM 13 million in 2023, and RM 30 million in 2024) being given since 2019.
Through the success of the national esports team in tournaments such as the Global Esports Games, esports has recently caught the attention of Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who will be suggesting to the Youth and Sports Ministry the construction of an esports-specific stadium.
As Sports Ministry is doing its best to fulfil requests from all the sports associations in the country, a specific question arises: “Will the ministry have the time and budget to build an esports stadium?”
Speaking to Scoop, sports analyst Mohd Sadek Mustafa said that it would be wiser for the ministry to try to convince private sectors to venture into creating infrastructure for esports.
He also said that the ministry should focus more on ensuring that it fulfils the requests of all the core sports bodies in the country and work according to the limited budget given by the government this year.
The government’s allocation of RM 184 million in Budget 2024 to the sports industry saw a significant decline of 46.1% compared to the RM 399 million allocated last year.
“It’s a good suggestion, but it’s going to be hard for the ministry to come up with a stadium for esports, and it would be a burden for them considering their current commitments. It should try to approach private entities to support and come up with ways to develop the sport.
“Private investors looking to clean up their tax can venture into this. The government will have many matters to address, especially in terms of fulfilling the necessities of other sports associations in the country.
“All the stadiums the government has built across the nation over the years are multipurpose stadiums. In countries abroad, esports is usually funded by private entities, and it would be a waste for the government to fund such an expensive stadium as we don’t have a huge stadium-going crowd for esports compared to football and badminton. They won’t be able to fill a 50,000-60,000 capacity stadium.
“The government has limitations, hence private sectors can venture into the industry and create more esports studios to invest in bringing more talent into the sport,” said Sadek.
For the record, Malaysia boasts having the biggest esports gaming facility in Southeast Asia, which was built with a budget of RM 4 million in 2020 by Esports Business Network (EBN), located on the top floor of Quill City Mall with over 6,000 square metres.
At the same time, Sadek, who is a senior sports science lecturer at Universiti Teknologi Mara, commended the deputy prime minister’s suggestion of implementing esports-related training programs under National Technical and Vocational Education and Training (TVET).
“It’s indeed a good plan, and it can be used to build an esports ecosystem with skills in journalism, esports casting, broadcast production, team management, competition organisation, and other technical work.
“This also positions Malaysia as an esports tourism destination, in line with the ministry’s esports strategic development plan.
“It would be great if the ministry, instead of putting too much pressure on themselves, seeks assistance from private colleges and universities to execute this suggestion,” Sadek added.
The recently concluded Malaysia Esports League (MEL) managed to attract 20 million online viewers from esports fans across the globe.
For the record, Malaysia won four medals (two silvers and two bronzes) at the 2023 Phnom Penh SEA Games, two medals (one silver and one bronze) at last year’s Hangzhou Asian Games, and three gold medals at the 2022 Birmingham Commonwealth Games. – June 23, 2024
