This article first appeared in Digital Edge, The Edge Malaysia Weekly on September 23, 2024 - September 29, 2024

Malaysia made history at the Hangzhou Asian Games in China last year, securing a silver medal — its first ever for e-sports — in the Arena of Valor competition. This achievement was followed by an invitation to a prestigious pro league with a US$10 million (RM43.3 million) prize pool. Despite surging viewership and a new wave of gamers, financial backing and sponsorship for the sport remain disappointingly scarce.

Arena of Valor, formerly Strike of Kings, is an international adaptation of Honor of Kings, a multiplayer online battle arena (MOBA) developed by TiMi Studio Group. The Malaysia Arena of Valor team is represented by Chong Han Hui, Eng Jun Hao, Lai Chia Chien, Nicholas Ng Khai Shuan, Ong Jun Yang and Yong Zhan Quan.

E-sports is far from child’s play — it’s now a major revenue driver, benefiting both players and the nation. Yet, a lack of awareness and understanding continues to keep financiers at bay.

“E-sports are popular in Malaysia, but prior to the Asian Games, support from the government and corporate sectors was lacking. The support [only increased] after we managed to get a good achievement,” says Wong Kang Woon, national manager of the team that competed in Hangzhou.

According to a market analysis and forecast by Stellar Market Research, Malaysia’s e-sports revenue is projected to grow at a compound annual growth rate of 12.6%, increasing from US$6.1 million (RM26.4 million) in 2024 to US$12.6 million by 2030.

With over 14 million gamers, primarily from the millennial and Gen Z demographics, the report highlights the growing viewership and engagement in e-sports. Mobile Legends Bang Bang (MLBB) led the list of the top 10 most-watched e-sports games in the country last year. MLBB is a mobile MOBA game developed and published by Moonton.

Despite the growing viewership and rising interest in the competitive gaming industry, will this translate into revenue for local e-sports players? Not necessarily, according to Wong.

“In e-sports, middle-level athletes earn about RM2,000 to RM3,000 a month through their activities. Take Honor of Kings, for example. China players earn RM400,000 a month but our athletes are only earning maybe RM1,500 to RM2,000. That is only the salary without brand endorsements or commercial activities,” Wong points out.

The government has recently increased its focus on developing Malaysia’s e-sports industry. On Oct 13 last year, Prime Minister Datuk Seri Anwar Ibrahim announced a RM30 million allocation in Budget 2024 to promote Malaysia as a regional hub for e-sports.

“Actually, Minister of Youth and Sports Hannah Yeoh [and the ministry] has been supporting the team since the Asian Games and after as well. There are some funds given but she also gave moral support during the Asian Games. She was with the team for three of the four days she was in Hangzhou,” Wong shares.

In addition, Malaysia’s MLBB representatives received further recognition with a send-off to the Esports World Cup in Riyadh, Saudi Arabia that took place from July 1 to 14, which took place at the deputy prime minister’s office in Perdana Putra.

“The government is playing an important role in helping to increase investment. But I would say that it takes a village to grow this industry together. So it’s not just the publishers doing all the work, it’s everyone,” says Fikri Rizal Mahruddin, marketing and business development lead of Malaysia at Moonton Games.

The e-sports industry encompasses a wide range of titles, but sustaining a team can be challenging due to limited resources and funding. With the livelihood of Malaysian e-sports athletes largely dependent on prize pools and commercial activities, this presents a potential opportunity for brands and sponsors to invest in the growing sector.

E-sports titles refer to video games with well-established professional scenes, typically involving player-versus-player (PvP) competition, often accompanied by significant prize pools and dedicated organisations that support the ecosystem.

However, the popularity of e-sports titles in Southeast Asia differs markedly from the global scene, making it crucial for brands to understand regional preferences when targeting gamers. In this region, mobile games dominate the landscape, particularly MOBAs like MLBB and battle royale titles like PUBG Mobile, driven by high smartphone penetration and accessibility.

“When you talk about mobile games, you are looking at accessibility and the millions of players who create a niche or community around that title. For brands, especially on the marketing side, they need to be aware of the distinction of the games and the personas of the community play,” says Samson Oh, CEO of GosuGamers, an e-sports news portal.

Oh suggests leveraging the otaku culture within the e-sports community — people with deep, consuming interests in anime, manga, video games or technology. “I’m quite an otaku myself,” he admits. “I buy a lot of stuff because of influence. It’s about the people I respect, those who have mastered their craft. They influence my buying behaviour.”

For brands to tap into this market, they need to align themselves with the values and ethos of the community. Equally important is choosing the right influencers to reach the target audience effectively.

“If a brand has no relationship with the community, it won’t last long. The younger generation doesn’t value pricing as much as they value a sense of belonging,” says Oh.

Whether brands like it or not, social media marketing has reshaped how they connect with consumers. Entertainment, such as watching competitive gaming, is increasingly appealing to younger audiences, presenting brands with opportunities to support the e-sports community while also driving revenue.

“Ultimately, what we want is the teams to have their own business. So, usually, it’s the merchandising. It’s the brand and sponsorship deal that they can get. Then it’s the influencer marketing so that players can kick-start a platform to get more revenue,” says Fikri.

“Just to share, we have just recently ended Mobile Legends: Bang Bang Professional League (MPL) Malaysia season 13, and we secured a total of 630,000 peak concurrent viewers. ‘Peak concurrent viewers’ mean people who are watching the tournament [stream] at the same time,” he says.

He adds: “And why are all these kids watching these tournaments? Because all of them share the same passion and interest in competitive gaming. [Look at it this way,] we have all the attention of 630,000 people [who can be] potential buyers. These are the opportunities that brands need to see and leverage.”

Female fan loyalty in competitive e-sports has seen a significant rise as well. According to statistics from ESM.ONE Inc, women’s e-sports tournaments generated an impressive 28 million hours of viewing time in 2023.

The most-watched title in women’s e-sports last year was Valorant, a first-person tactical hero shooter developed by Riot Games, which accumulated a collective 16.3 million hours watched. MLBB secured the second spot with nine million hours of viewership.

“Thanks to female empowerment, I find there’s a lot of loyalty from the female gamers. It’s just that a lot of people don’t talk about it. A lot of times, the ladies can be much more competitive than the guys too [when it comes to e-sports],” Oh observes.

Building a holistic e-sports ecosystem is no easy feat, and Malaysia still has a long way to go. However, with e-sports being a developing field full of possibilities, there is significant potential for brands and players to collaborate in building a supportive ecosystem.

In 2023, Fikri says Malaysians faced challenges in performing well at international tournaments, primarily due to a lack of investments and a limited talent pool. To address these issues, Moonton introduced the Mobile Legends: Bang Bang Academy League Malaysia (MAL MY) on Feb 5 during the unveiling of the MLBB Esports Malaysia 2024 road map at The Exchange TRX.

MAL MY serves as a developmental league for Mobile Legends in Malaysia, aiming to provide aspiring gamers with a more structured and competitive pathway into the MPL Malaysia, ultimately fostering growth and nurturing talent within the local e-sports scene.

“It’s a young industry and I want to encourage a lot more people to look into it. I feel that there is more room for growth in terms of brand investment. Instead of just going to the typical media buys, I would suggest that brands try and explore, at least once, being a part of e-sports. If you never try, you never know,” says Fikri.

For aspiring e-sports players, Fikri offers the same piece of advice. “If e-sports and playing competitively are your passion, then you just need to put your heart into it and just try. And if you can’t do well in competitive sports, like I mentioned, there are plenty more opportunities.”

He encourages people to explore this growing field, not just for competitive gaming but also for the various opportunities it offers.

“You can be a coach, an analyst or even on the marketing side of it, but that’s a different goal individually. It doesn’t mean that it stops [at being an e-sports player]. I think we should open their eyes a bit more for them to see the opportunities within e-sports,” says Fikri.

Wong is actively working to improve the environment for the Malaysian e-sports national team. He believes its recent success will lead to a more positive view of e-sports in the country. However, his ultimate goal is for e-sports athletes, even traditional ones, to receive the same level of recognition and benefits as held by international players.

“E-sports look a lot like traditional sports. Players need to have a proper training schedule, nutrition [plan and support for their] mentality,” says Wong.

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