MDEC unveils new initiatives to increase funding for games, animation, and metaverse industries

Kuala Lumpur, Malaysia – Malaysia’s digital creative industry, which includes animations, films, and video games, has become a significant driver of economic growth. In light of this, the Malaysia Digital Economy Corporation (MDEC) has introduced a series of incentive programs aimed at advancing industry development and boosting international competitiveness.

One of these programs is the ‘Digital Games Testbed Programme (DGTP)’, which will provide RM3.5 million in funding to five Malaysian game development companies. Each company is eligible for up to RM700,000 in support. DGTP is open to Malaysian-owned game studios with a proven track record and a clear strategy for expanding their intellectual property (IP).

Additionally, the ‘Animation Shorts Challenge’ initiative aims to strengthen Malaysia’s animation industry by fostering high-quality digital content. Through competition and mentorship, this program supports local creators in developing impactful animated short films with strong IP potential. A total project fund of RM1.2 million will be allocated to support 12 participants and the development of 12 new animation short IPs.

Lastly, the ‘Business in Metaverse Programme’ is designed to help Malaysian businesses utilize metaverse technologies for brand engagement and immersive commerce. With a total funding of RM1 million, this program will support 200 businesses with up to RM5,000 each for implementing marketing strategies based on the metaverse.

MDEC’s CEO, Anuar Fariz Fadzil, emphasized the strategic importance of the digital creative industry in creating high-value jobs, nurturing local intellectual property, and generating export revenue. He believes that these incentive programs will enhance the talent development and market access of the industry while establishing Malaysia as a global hub for digital content creation.

Overall, Malaysia’s digital content market has experienced significant growth, with substantial revenue and export sales, benefiting over 11,000 Malaysians employed in the industry since 2011. Anuar spoke at the Digital Creative Industry Engagement Session 2025, where MDEC officially launched the funding initiatives to empower local studios and digital content creators across games, animation, and the metaverse, reiterating MDEC’s commitment to advancing the digital economy and supporting local innovation.

These incentives are intended to drive sustainable industry growth, attract international investment, and solidify Malaysia’s position in the global digital creative landscape.