MDEC Launches Funding for Games Development Through RM3.5 Million Initiative

The Malaysia Digital Economy Corporation (MDEC) has announced substantial funding for games development as part of a broader investment package totaling RM5.7 million aimed at empowering local studios and content creators in games, animation, and metaverse technologies.

The announcement came during the Digital Creative Industry Engagement Session 2025, where MDEC CEO Anuar Fariz Fadzil highlighted the sector’s significant economic contributions. Since 2011, Malaysia’s digital content market has generated RM87.25 billion in revenue and RM11.18 billion in export sales while creating employment for over 11,000 Malaysians.

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MDEC recently hosted the Digital Creative Industry Engagement session, bringing together animation, games, and creative tech industry players to celebrate milestones and unveil exciting plans for 2025. The event was attended around 120 industry players, reflecting strong pic.twitter.com/bwMJI284Al

— Malaysia Digital Economy Corporation (@mymdec) April 12, 2025
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“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,” Fadzil stated.

The new initiatives include the Digital Games Testbed Programme (DGTP), which will provide RM3.5 million to at least five Malaysian game development companies, with each eligible for up to RM700,000. This program targets Malaysian-owned studios with proven track records and clear IP expansion strategies.

Funding for Games — MDEC CEO Anuar Fariz Fadzil (Middle), Divisional Secretary, Digital Business Division of Ministry of Digital, Yang Berbahagia Datin Noraisha Akma binti Ismail (Third from Right), and the digital content industry players. | Image Credit: MDEC

For animation, the Animation Shorts Challenge will distribute RM1.2 million to support 12 participants in developing animated short films with strong IP potential. The program includes industry mentorship to enhance skills and global market readiness. Additionally, the Business in Metaverse Programme will allocate RM1 million to help 200 Malaysian businesses implement metaverse-based marketing strategies, with each business eligible to receive up to RM5,000.

These initiatives reflect MDEC’s commitment to nurturing local innovation, supporting industry players, and creating a resilient digital ecosystem that can compete on the international stage.