This article first appeared in Digital Edge, The Edge Malaysia Weekly on September 8, 2025 - September 14, 2025

Malaysia’s independent animation studios say a tougher business mindset and better industry support are essential for long-term survival in a sector often perceived as driven purely by creativity. While major players such as Les’ Copaque Production, Primeworks Studios and Animonsta dominate headlines with popular titles such as Upin & Ipin, Ejen Ali and Mechamato respectively, smaller studios say they face persistent challenges in securing projects, building credibility and sustaining growth.

For Frankie Lee, Calvin Mok and Tom Teoh, founders of Lorrypop Studio Sdn Bhd, the lack of business know-how was a major obstacle when they started in 2013.

“The challenges we had at that time [ranged from] learning how to build a team to getting the studio recognised by clients so that we could take on more projects,” recalls Lee.

He says connecting with ecosystem players like the Malaysia Digital Economy Corporation (MDEC) and other government agencies is vital, and that support from major industry players is still lacking.

“[With regard to] the infrastructure and ecosystem within Malaysia, I think we need more support from big players like Kucingko Bhd or from the government to help Malaysian animation studios become more competitive in the Southeast Asia market,” he adds.

Kucingko (KL:KUCINGKO) became the country’s first listed animation studio in July last year, but Lee says he has yet to see tangible benefits for the wider industry as a result of that.

“You are missing out on a very important connection with the local players and the local market. If bigger companies can distribute their resources to help everyone in Malaysia, animation studios like us can grow together. I think that will be beneficial in the long term,” Lee says.

He adds that while major studios often collaborate with international partners, small and medium enterprises have limited internal resources to sustain themselves.

Two People Studio, which specialises in 2D and 3D animation, also found building a reputation and sustaining operations in a competitive environment an uphill task. Sky Ng, which founded the company in 2014, recalls that the early days were slow and difficult.

“You start with trying to do good work and not charging too much. You try to get your hands on whatever you can and as the studio, we try to provide the best service we can within our ability,” he says.

One of the biggest hurdles is budget expectations. Ng says some clients assume that if an animation is not for TV, it should cost significantly less.

“TV commercials typically require extra steps like getting licences and certifications, which cost money. So when those steps are not needed, clients expect a lower cost,” he explains.

He argues, however, that the true value lies in the creative and technical expertise required to produce high-quality animation. “Moreover, things [move more rapidly] these days, with shorter turnover periods. Clients tend to prioritise quantity over quality.”

Ng keeps his team lean and focuses largely on commercial and commissioned projects instead of creating original intellectual property. He is also committed to avoiding the burnout often associated with the industry.

“We also try to educate our clients on it. So, we learn how to say no to them. We try our best to accommodate all parties without neglecting the team and client.”

The issue of perception exists also in niche animation sectors. Edward Yong, brand director and designer at Multiply Studio Sdn Bhd, says its animation and visualisation services for the architectural sector are often undervalued.

“One of the challenges within our industry is that most developers are doubtful of our abilities in meeting their expectations. This is partly because we are not architecture graduates, but I wouldn’t blame them either. I think it’s also because many visualisation studios haven’t conducted themselves professionally,” says Yong.

To overcome this, Multiply Studio learnt the technical language of architects, interior designers and engineers to bridge the trust gap.

“If you were to look at our company, it might be a little bit more corporate looking. But because we talk to developers, we need to have a certain kind of cadence and posture to appeal to them,” he explains.

Yong says the property industry has become more challenging, with shorter turnaround times and more demanding buyers. As a result, the studio must adapt its output to market needs.

“The bottom line is that you need a healthy balance of creative artistry and professional conduct. What is occurring in the market right now is that we see it swinging towards the extreme ends of it being very business-like [or] artsy. So, we are learning to bring that balance to harmony.”

Yong says the perception that the creative industry is not profitable is misguided. “At the end of the day, you just have to learn to run a good business.”

Industry players say technical expertise alone is no longer enough. Soft skills, business acumen and a willingness to keep learning are increasingly vital.

“There’s a phrase that I came across that all aspiring animators should know, which is, ‘art and corporate interests do not always align’. So, you need to know how to align those interests and how to run a business as an artist,” says Yong.

Ng believes the education system should place more emphasis on critical thinking. “Their curriculum encourages a lot of critical thinking, in the sense that they always question the purpose of what they are doing. For example, why did you choose this style and how would you react if you’re given this kind of assignment? I think that actually helps create more creative people and also the ability to sell what they create.”

Teoh from Lorrypop Studio shares that when he and his co-founders were graduates, resources were scarce and learning relied heavily on long-term mentorships within studios. He says online resources are abundant today, but graduates still need to equip themselves with skills relevant to their intended roles.

Lee says Lorrypop Studio frequently takes in interns and exposes them to real industry conditions. “During the internship programmes they go through, we would usually have industry players and our connections give the students their assessments, workshops and knowledge sharing.”

For Multiply Studio, which operates at the intersection of animation and architecture, maintaining a balanced skill set is challenging.

“The skills [for our industry] are quite easy to acquire but they are very difficult to master and fall in love with. It can be frustrating because you will be looking at surfaces and walls instead of producing Pixar-like animation,” says Yong.

In recent years, many of the studio’s recruits have been architecture graduates rather than animation specialists. While the learning curve is steep, Yong values their mindset.

“The mindset they approach us with is really useful. Training and mentoring them is not easy but the willingness in them to learn and improve further [helps],” he says.

Yong believes education providers must prepare animation graduates for the realities of the industry.

“Ultimately, there is a need for educational institutions to equip future animation graduates with skill sets that help shape their mindset and manage their expectations going into the industry.”

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