Government targets 10.9% gaming revenue CAGR as part of broader sports investment.

The RM10 million allocation for a dedicated esports stadium in Malaysia’s Budget 2025 marks a landmark infrastructure investment, signalling the government’s commitment to positioning esports as a driver of economic growth and youth engagement. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced the stadium construction on November 3, 2024, at the Mobile Legends: Bang Bang Malaysia Professional League (MPLMY) Finals, framing it as a strategic asset to support and promote the future growth of the industry by hosting national and international events.

Budget 2025: RM20 Million Esports Allocation Breakdown

Under the Malaysia Madani Budget 2025, tabled by Prime Minister Datuk Seri Anwar Ibrahim on October 18, 2024, the government allocated RM20 million specifically for esports development. This sum sits within a total sports development budget of RM230 million, which includes significant support for esports as a key component of the broader sports ecosystem.

Of the RM20 million esports allocation, RM10 million is earmarked for the construction of a new, dedicated esports stadium. The remaining RM10 million will fund training, grassroots activities, and talent development across the sector. Deputy Prime Minister Ahmad Zahid confirmed the breakdown on November 3, stating: “Of that amount, RM10 million will be allocated for the construction of a dedicated e-sports stadium, while the remaining funds will be used for training and other activities related to e-sports.”

The funding also supports upgrading existing esports arenas and facilities nationwide, as part of efforts to strengthen the entire esports infrastructure.

RM millionSource: Orionmano Industries

Infrastructure and National Esports Centre

The planned esports stadium is intended to function as a national esports centre capable of hosting both domestic and international competitions. According to Ahmad Zahid, the venue will support and promote future industry growth by providing a dedicated physical space for large-scale events—an asset Malaysia currently lacks at this scale.

Beyond the new stadium, the government is encouraging state-level replication of successful infrastructure models. Ahmad Zahid noted that Sarawak has already taken a lead by establishing the Centre for Technology Excellence Sarawak (CENTEXS) for esports development, and he urged Johor to emulate such initiatives. “E-sports was not only an indoor gaming activity but could also serve as a source of income,” he said.

The Budget 2025 allocation also covers upgrading of existing esports arenas across the country, addressing gaps in venue quality and capacity that have constrained Malaysia’s ability to host larger international tournaments.

Economic Impact: Gaming Revenue and Growth Projections

Malaysia’s gaming industry contributed approximately USD 100 million to national revenue, according to an April 2025 analysis by the Institute of Strategic and International Studies (ISN). The sector is projected to grow at a compound annual growth rate (CAGR) of 10.9%, reflecting its potential as a significant economic contributor.

With over 14 million gamers in Malaysia, the sector benefits from broad consumer engagement. Mobile gaming has particularly accelerated accessibility, expanding the potential talent pool and consumer base. The ISN report states that the esports industry is expected to create thousands of jobs across event management, marketing, media, coaching, and technical roles.

Revenue (USD M)Source: Orionmano Industries

Long-Term Government Commitment and Ecosystem Support

The RM230 million sports development allocation, of which esports is a significant component, indicates a long-term commitment to nurturing the esports industry beyond one-off funding. The ISN report explicitly frames this as indicative of sustained government intent: “A broader allocation of RM230 million for sports development includes a significant portion earmarked for e-sports, indicating a long-term commitment to nurturing the industry.”

The funds are part of the Malaysia Madani Budget 2025, aimed at strengthening the entire sports ecosystem. Additional government support mechanisms exist for esports startups and entrepreneurs. The Ministry of Youth and Sports (KBS) administers the Digital Economy Fund (DEK), which backs youth-led digital initiatives including esports platforms and training centres. The Malaysia Digital Economy Corporation (MDEC) offers startup accelerator grants that provide Malaysia Digital (MD) status access to game startups and esports content developers.

These programmes, alongside the Budget 2025 allocation, form a multi-pronged strategy to boost esports growth, infrastructure, and participation in global competitions.

Outlook

With dedicated infrastructure funding, a clear economic growth trajectory, and supporting grant programmes, Malaysia is positioning itself as a regional esports hub. Sustained government investment and effective execution of talent pipeline development will be critical to translating budget allocations into competitive global outcomes.