Kuala Lumpur, Malaysia – With Malaysia’s rapidly maturing digital creative industry — spanning animations, films and video games — emerging as a key driver of economic growth, the Malaysia Digital Economy Corporation (MDEC) has announced a series of incentive programmes aimed at advancing industry development and enhancing the industry’s international competitiveness.
First off, the ‘Digital Games Testbed Programme (DGTP)’ aimed at strengthening Malaysia’s games industry by providing RM3.5 million in funding to at least five Malaysian game development companies, each eligible for up to RM700,000.
Open to Malaysian-owned games studios with a proven track record and a clear IP expansion strategy, DGTP encourages new game genres, enhances local studios, and fosters international partnerships to position Malaysia as a competitive game development hub.
Moreover, the ‘Animation Shorts Challenge’ programme, a competition-based initiative designed to strengthen Malaysia’s animation industry by nurturing high-quality digital content. Through structured competition and industry mentorship, this programme supports local creators in developing impactful animated short films, commonly called shorts, with strong Intellectual Property (IP) potential.
The initiative is set to provide selected participants with expert guidance, bridging local talent with industry leaders to enhance skills, creativity and global market readiness. A total project fund of RM1.2 million will be allocated to support 12 trained participants and the development of 12 new animation short IPs.
Lastly, the ‘Business in Metaverse Programme’ is designed to help Malaysian businesses leverage metaverse technologies for brand engagement and immersive commerce. With a total funding of RM1 million, this programme will support 200 businesses, each eligible to receive up to RM5,000 to implement metaverse-based marketing strategies.
By integrating digital tools such as virtual storefronts, gamified marketing strategies, and branded digital assets, businesses can enhance customer engagement and increase brand visibility in the evolving metaverse landscape.
MDEC Chief Executive Officer Anuar Fariz Fadzil described the digital creative industry as a ‘strategic economic industry with strong potential that continues to create high-value jobs, nurture local intellectual property while driving export revenue’.
“Through these financial incentive programmes, we aim to strengthen the entire value chain — from talent development to market access — while positioning Malaysia as a globally competitive hub for digital content creation,” he said.
“Often driven by passion and creativity, the digital creative industry attracts professionals who are deeply committed to their craft,” he added.
“MDEC’s programmes are designed to support these talents by encouraging them to build on their strengths, explore innovative ideas and turn their passion into commercially viable content for local and global audiences.”
Malaysia’s digital content market has grown substantially over the years, posting RM87.25 billion in revenue and RM11.18 billion in export sales, while creating gainful employment for some 11,154 Malaysians within this industry since 2011.
Anuar was speaking at the Digital Creative Industry Engagement Session 2025, where MDEC officially launched the new funding initiatives aimed at empowering local studios and digital content creators across key segments such as games, animation and the metaverse.
Anuar reaffirmed MDEC’s commitment to advancing all facets of the digital economy, including nurturing local innovation, supporting local industry players and building a resilient digital ecosystem while enabling jobs and opportunities.
“The newly announced incentives are aimed at driving sustainable industry growth, attracting international investment and positioning Malaysia as a prominent player within the global digital creative landscape, which we already are,” he concluded.
