Malaysia is accelerating the growth of its established games industry, leveraging its strengths in creative talent and competitive game development capabilities with a focus on attracting high-value investments, developing Malaysian-owned intellectual property (IP) and expanding access to global markets. The renewed push comes as the Malaysia Digital Economy Corporation (MDEC) hosts LEVEL UP KL 2026, bringing together game developers, publishers, investors and technology leaders from around the world.
LEVEL UP KL 2026 : Malaysia's Games Industry Enters Next Growth Phase, Driven by Investments, Talent and Innovation
KUALA LUMPUR, 16 October 2026: Malaysia is accelerating the growth of its established games industry, leveraging its strengths in creative talent and competitive game development capabilities with a focus on attracting high-value investments, developing Malaysian-owned intellectual property (IP) and expanding access to global markets.
The renewed push comes as the Malaysia Digital Economy Corporation (MDEC) hosts LEVEL UP KL 2026, bringing together game developers, publishers, investors and technology leaders from around the world. Deputy Minister of Digital Datuk Wilson Ugak anak Kumbong said that Malaysia was already well positioned to build on its industry strengths and capitalise on emerging opportunities.
“Malaysia has developed a strong foundation in game development, supported by capable local talent, international industry participation and government initiatives. We are now focused on accelerating this growth, attracting more high-value investments and enabling Malaysian developers to compete globally,” he said.
“We want our creative professionals to acquire the skills and capabilities needed to move into higher-value activities, including developing globally competitive intellectual property.”
Datuk Wilson said that these priorities aligned with Digital Creative Ecosystem Roadmap, which aims to position Malaysia as a global digital creative hub. Led by the Ministry of Digital and implemented with MDEC, the roadmap targets RM9 billion in digital creative industry revenue, RM6 billion in exports, RM6 billion in strategic investments and 10,000 high-value jobs by 2030.
According to preliminary MDEC data, Malaysia's digital content ecosystem includes approximately 300 companies with Malaysia Digital status, including about 100 involved in game development, spanning development services and original IP creation. Malaysia’s focus on strengthening its domestic games ecosystem comes amid rising global development costs, reduced project financing and studio closures following the pandemic-era expansion. These challenges highlight the need to build more resilient local studios, support sustainable business growth and expand access to international partnerships and investment.
Meanwhile, MDEC Chairman Ganesh Kumar Bangah said that technology such as artificial intelligence (AI) presented Malaysia with an opportunity to further strengthen its competitiveness by combining human creativity with technology-driven productivity.
“AI is changing how games are developed, creating opportunities to improve productivity, reduce costs and accelerate production. However, technology alone does not create great games. Creativity, imagination and storytelling remain essential,” he said.
“Malaysia has the talent and capabilities to take advantage of this transition. Our opportunity is to combine these strengths with AI so that our developers compete not just on cost, but increasingly on quality, innovation and productivity.”
Ganesh said that access to AI computing capabilities would become increasingly important as studios adopted new production tools. MDEC is exploring how the National AI Compute Exchange (NACX) could support this transition by facilitating access to computing resources, potentially enabling faster prototyping, more efficient workflows and lower technological barriers.
“We must help our talent adapt and acquire higher-value skills, particularly in storytelling, game design and creative development. By bringing together talent, technology and industry support, Malaysia can offer a stronger proposition for international studios looking to establish, expand or reinvest here,” added Ganesh.
MDEC's talent development efforts include a dedicated Talent Hub at LEVEL UP KL 2026, offering mentorship, portfolio reviews and career guidance through industry practitioners and educational institutions.
Beyond LEVEL UP KL, MDEC continues to engage game studios to better understand their changing skills requirements and investment to support long-term industry growth. These priorities reflect the evolution of LEVEL UP KL, which has developed over approximately 12 years into a regional platform for business opportunities, international collaboration and talent development. This year's edition features more than 50 speakers, 25 conference topics, five partner events and two masterclass workshops.
Highlights include the Game UX Summit, making its Asian debut, Games for Change, Xsolla Connect KL, Nintendo and PlayStation industry sessions, Unreal Engine training, a Women in Games networking session and an expanded independent games showcase.
LEVEL UP KL 2026 is targeting 400 business meetings, RM120 million in export opportunities and RM100 million in investment opportunities, with 100 businesses expected to benefit from its industry engagement programmes. The programme also includes the SEA Game Awards Show, recognising creativity, innovation and technical excellence among Southeast Asian game developers.
