Malaysia ministry considers stricter regulations, greater protections for booming esports industry

Malaysia’s Ministry of Youth and Sports (KBS) is working to revise regulatory guidelines for esports, including restrictions on violent content and greater protections for players.

By one estimate, more than 5.2 million Malaysians regularly participate in the sporting contests. In 2025, analysts valued the Malaysian industry at RM1.6 billion (US$340 million), up 20% from 2024, with the potential to reach RM20.9 billion by 2030.

Mediha Mahmood, CEO of the Malayisa Communications and Multimedia Content Forum (CMCF), said industry stakeholders in the country have also joined together to discuss games and gaming platforms, player communities and child safety. The CMCF is working to develop a “gaming sub-code” that spans responsible gaming, community conduct and “industry-led” content standards.

“User protection, community behaviour and healthy digital experiences are deeply interconnected,” said Mahmood. “These issues cannot be addressed in silos, particularly as gaming and esports become increasingly mainstream.”

KBS guidelines include player contract management, event management, protections for children and guidance on esports education and careers.

Malaysia government backs esports growth

A Statista market report noted that the esports industry in Malaysia has witnessed “a surge in popularity, driven by increased youth engagement and government support for digital innovation”. In its 2025 budget, the government allocated RM20 million to develop the industry and maximise its revenue potential. Lawmakers earmarked a portion of funding for a dedicated esports stadium in Kuala Lumpur. That later changed to a retrofitted arena at KL Sports City in Bukit Jalil, scheduled to open this year.

Malaysia is striving to become a centre of esports in Southeast Asia. As stated in KBS’ 2020-25 esports development plan, “The country has a large pool of gamers, steadfast growth in esports players, an increasing number of esports events and most importantly, backing from the government.” Support comes from the Ministry of Multimedia and Communication and the Ministry of Finance as well as the KBS.

Projections from Future Market Insights say the global esports industry, currently worth US$4.5 billion, could reach US$30.7 billion by 2036. “Asia Pacific, especially China, South Korea and Japan, leads the industry with a massive player base and high tournament viewership,” FMI stated. “North America follows closely, benefiting from established gaming infrastructure, strong media rights deals and franchised leagues. Europe is steadily growing, with investments in collegiate eSports programmes, gaming arenas and local tournaments.”