market expectation

The number of mobile online game players in Southeast Asia has grown to about 250 million, with Malaysia being one of the key markets.

According to data from the All-Correct Games blog, the mobile gaming market in Southeast Asia is expanding rapidly, with Malaysia, Thailand, Vietnam, Indonesia, Singapore and the Philippines being the six most important mobile gaming markets in the region.

Malaysia's online casino and board game market occupies an important position in Southeast Asia. The number of Internet users in Southeast Asia is increasing rapidly, mainly due to the increase in the use of mobile devices.

Nearly two-thirds of the gaming population in Greater Southeast Asia is engaged in e-sports, a trend that has also driven the development of Malaysia's online gambling market. The strong growth of the Southeast Asian gaming market is also reflected in revenue.

In 2022, despite the negative growth in the European and American markets to varying degrees, emerging markets represented by Southeast Asia showed an optimistic growth trend. Malaysia, Thailand and Singapore ranked among the top three in Southeast Asian mobile game revenue.

According to market forecasts, the size of the Southeast Asian gaming market will reach US$14.8 billion in 2024 and increase to US$14.93 billion in 2029, with an average annual growth rate of 0.19%. This growth trend indicates that the Malaysian online gaming market will continue to expand and attract more investment and players.

Although the Malaysian government has a ban on gambling-related board games, online board games still have a lot of room for development in Malaysia due to the country's large non-Muslim population, especially the Chinese community.

As the novel coronavirus continues to spread, the number of games and players in the online board game market has increased significantly, demonstrating strong market demand.

In order to change the sluggish economic development trend, the Malaysian government's attitude towards online chess and card games has become increasingly ambiguous, and supervision has gradually been relaxed, trying to stimulate economic development and bring in more tax revenue through this area.

Therefore, despite the legal restrictions, the government's supervision is not strict in actual operation, which provides more possibilities for the operation of online chess and card games. Malaysia's good market environment and infrastructure also provide favorable conditions for the development of online chess and card games.

Malaysia is one of the largest gaming markets in Southeast Asia, with a large number of gamers and a high level of Internet infrastructure, which provides solid support for the promotion and operation of online chess and card games.

In general, Malaysia's online chess and card game market has huge potential and room for development.

Despite some legal and regulatory challenges, the market's high spending power, widespread smartphone penetration and the government's gradually relaxed regulatory attitude all provide favorable conditions for the successful operation of online chess and card games.

Cultural and religious influences

Malaysia is a multicultural and multi-religious country, which has a profound impact on the online chess and card game market. The main religion in Malaysia is Islam, which accounts for the majority of the country's population, which makes gambling chess and card games legally prohibited.

Nevertheless, Malaysia still has a large non-Muslim population, including Chinese and Indians, and these groups are more receptive to online chess and card games. Therefore, despite the strict legal restrictions, there is still room for development in the market.

Malaysia's Communications and Multimedia Content Guidelines clearly stipulate that gambling, fortune-telling and pork are not allowed in Internet and game products. These regulations reflect the strict requirements of Islamic teachings and culture on game content.

In addition, Malaysia has strict restrictions on violence and pornographic content, which also apply to online chess and card games. These cultural and religious factors require game developers to be extra cautious when designing and operating games to avoid breaking the law.

It is worth noting that the Chinese community in Malaysia has a high demand for Chinese games, which provides a unique market opportunity for Chinese online chess and card games.

Game developers can attract more players by providing multi-language support, especially Chinese and English. In general, Malaysia's culture and religion bring both challenges and opportunities to the online board game market.

Understanding and respecting these cultural and religious backgrounds is crucial to successfully operating online card games in Malaysia.

Laws and regulations

In Malaysia, gambling board games are officially deemed illegal, mainly due to Malaysia being a Muslim-majority country and Islam having strict prohibitions on gambling.

According to Malaysia's Communications and Multimedia Content Guidelines and other relevant regulations, gambling, fortune-telling, pornography and other content are not allowed to appear in Internet and game products. These regulations reflect Malaysia's strict regulatory attitude towards online chess and card games.

Nonetheless, Malaysia’s non-Muslim population, including a large Chinese population, leaves some room for online card and board games to develop in the country. Especially during the COVID-19 pandemic, the number of online card and board games and the number of players have increased significantly.

Malaysia currently does not have any laws specifically targeting games. The relevant regulations are mainly concentrated in three laws: the Communications and Multimedia Content Guidelines, the Communications and Multimedia Act, and the Malaysian Communications and Multimedia Commission Act. These laws are more likely to refer to the management methods of multimedia to manage games.

It is worth noting that the Malaysian government has gradually relaxed its regulatory attitude towards online chess and card games, trying to stimulate economic development and increase tax revenue in this way.

Therefore, despite strict legal provisions, there may be some flexibility in actual operation.

Compliance requirements

To operate online chess and card games in Malaysia, you first need to understand and comply with relevant laws and regulations.

According to Malaysia's Communications and Multimedia Content Guidelines, gambling, fortune-telling, pork and other elements are not allowed in Internet and game products, and there are also strict restrictions on violent and pornographic content.

These regulations are mainly due to the fact that Malaysia is a Muslim-majority country, and religious beliefs have a profound impact on the law. Although gambling board games are illegal in Malaysia, the online board game market still has a large room for development due to the large non-Muslim population in Malaysia, especially the Chinese.

The government's regulatory attitude towards online chess and card games has gradually relaxed in order to stimulate economic development and increase tax revenue through such industries. In terms of compliance operations, game companies need to establish a sound compliance review mechanism.

This includes the game review team, game review standards and review frequency, etc. In addition, risk control measures need to be taken, such as gambling risk supervision, gambling account processing, real-name authentication mechanism, anti-addiction mechanism, user agreement and privacy protection policy, etc.

Data protection is another important compliance requirement. Under Malaysian law, gaming companies must comply with the principle of notice and choice when collecting and using players’ personal data. This means that before processing player data, companies must provide written notice to the data subject informing them of how their data will be used.

In addition, if a gaming company entrusts player data to a third party for processing, or transfers the data to overseas servers, it is also necessary to conduct a data outbound security assessment to ensure the security and compliance of the data transfer process.

These measures are aimed at protecting players' personal privacy and preventing data leakage and abuse. In order to ensure compliance operations, game companies also need to establish internal compliance mechanisms.

This includes formulating compliance operation systems, conducting regular compliance training, and establishing customer complaint handling standards, such as customer complaint handling procedures and customer service communication standards. These measures help improve the company's compliance level and reduce legal risks.

Data Protection Data protection is a crucial compliance requirement when operating online card and board games in Malaysia. According to Malaysia’s Personal Data Protection Act (PDPA), gaming companies must comply with a series of strict regulations when collecting, using and processing players’ personal data.

First, before collecting player data, game companies must provide written notice to the data subject, informing them how their data will be used. This requirement is intended to ensure the transparency of data processing and give the data subject the right to know and the right to choose.

In addition, when processing player data, gaming companies must ensure the security of the data to prevent unauthorized access, disclosure or abuse. If gaming companies entrust data processing to a third party, they must also ensure that the third party also complies with relevant data protection regulations.

In terms of cross-border data transfer, if the game company operates overseas but the server is located in Malaysia or a third country, a data outbound security assessment must be conducted to ensure the security and compliance of cross-border data transfer. It is worth noting that Malaysia's "Communications and Multimedia Content Guidelines" also strictly regulate the content of Internet and game products, prohibiting the presence of gambling, violence and other elements. These regulations also apply to the data processing and content management of online chess and card games.

Operational suggestions

To successfully operate online chess and card games in Malaysia, you first need to understand and comply with local laws and regulations.

Although gambling board games are illegal in Malaysia, there is still a lot of room for the development of online board games due to the large number of non-Muslims and Chinese in Malaysia.

The government's regulatory attitude towards online chess and card games is gradually relaxing to stimulate economic development and increase tax revenue. Choosing the right game language is the key to successful operation.

There are three major languages in Malaysia: Chinese, English and Malay. Although Malay is the official language, English is mainly used in the game because it is widely used in Malaysia. At the same time, due to the large number of Chinese people, Chinese cannot be ignored.

Using social media for promotion is an effective strategy. With more than 22 million users in Malaysia, WhatsApp is the main tool for instant messaging.

Communicating with players or providing customer service through WhatsApp can improve user satisfaction. In addition, Facebook also has a large user base in Malaysia. Using Facebook for game promotion and supporting Facebook account login can greatly improve the user experience.

In terms of gameplay, you can consider game types that are simple to learn and have a wide coverage.

For example, Domino is very popular in Southeast Asia, especially Indonesia. Choosing these popular gameplay options makes it easier to attract and retain players.

Finally, it is also crucial to pay attention to market dynamics and competition. Although Malaysia's online chess and card game market has a lot of room for development, as more and more domestic operators enter the market, competition will intensify.

Therefore, timely adjustment of operational strategies and maintaining competitive advantages are the keys to success.