Malaysia Bets on Sarawak as Next SEA Animation and Gaming Hub

Malaysia is making one of its strongest pushes yet into the global digital content economy, with Sarawak selected to host the inaugural Borneo Animation & Games Festival (BAGFEST) 2026, the first international animation and gaming festival ever held in Borneo.

Running from August 19 to 23, 2026, the event is expected to bring together more than 1,500 delegates from over 20 countries, reflecting Malaysia’s broader ambition to diversify its digital economy beyond traditional technology sectors and into high-value creative industries.

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The decision to stage the event in Kuching rather than Kuala Lumpur highlights the Federal Government’s growing emphasis on developing East Malaysia as a new innovation corridor. Analysts say the move aligns with Sarawak’s ongoing investments in digital infrastructure, renewable energy and technology-driven industries, positioning the state as an emerging destination for knowledge-based businesses.

The festival, themed “Forging Sarawak’s Digital Future as the Regional Hub for Animation & Games,” aims to strengthen Malaysia’s position in animation, game development, digital storytelling and intellectual property creation while encouraging stronger collaboration between local creators and international partners.

Digital Minister Gobind Singh Deo described BAGFEST as more than an industry gathering, calling it an important milestone in Malaysia’s long-term digital economy strategy.

“BAGFEST 2026 reflects the strong partnership between the Federal Government and the Sarawak Government in advancing Malaysia’s digital creative industry while unlocking new opportunities for innovation, talent development and economic growth in East Malaysia.”

Gobind said Malaysia’s creative sector has reached a stage where stronger international engagement is becoming increasingly important.

“Our greatest investment is in our people. By connecting Malaysian talent with international industry leaders, investors and global markets, we are creating opportunities for our creators to develop world-class intellectual property and globally competitive businesses.”

The festival is expected to generate more than RM100 million in export opportunities and RM50 million in investment prospects, figures that industry observers say illustrate the growing commercial value of digital entertainment and creative technology.

Global demand for animation, gaming content and digital intellectual property continues to rise, driven by streaming platforms, mobile gaming and artificial intelligence. Governments across Asia have increasingly viewed the sector as a source of skilled employment and export growth, with Malaysia seeking to strengthen its competitive position alongside established regional leaders such as Japan, South Korea and Singapore.

Delegates from countries including the United States, Canada, France, Australia, Japan, South Korea, Thailand, Indonesia and the Philippines are expected to attend.

According to Malaysia Digital Economy Corporation (MDEC) Chief Executive Officer Anuar Fariz Fadzil, BAGFEST is designed to create long-term commercial opportunities rather than simply showcase creative work.

“Sarawak is blessed with abundant creative talent, strong institutional support and solid digital foundations to emerge as a regional centre of excellence for animation and games.”

He said the festival will help local studios gain greater access to international publishers, investors and distribution channels.

Beyond conferences and business networking sessions, BAGFEST will feature exhibitions, esports competitions, cosplay showcases, gaming experiences and community events aimed at broadening public engagement with the digital creative sector.

A MYFutureJobs Creative Speed Dating Career Fair will connect hundreds of jobseekers with employers, while aspiring creators can participate in professional portfolio reviews conducted by established industry practitioners.

Another community-focused initiative is Wayang Pacak, an outdoor animation screening inspired by Malaysia’s traditional open-air cinemas. Powered using green energy solutions, the event combines environmental sustainability with public access to locally produced animation.

The festival will be officially launched on August 21 by Sarawak Premier Datuk Patinggi Tan Sri (Dr.) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg.

For Malaysia, BAGFEST represents more than a showcase of creative talent. It serves as a test of whether regional cities like Kuching can become internationally recognized centers for digital content production, attracting investment while creating high-value careers for the next generation of creators.