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Southeast Asia has always been one of the key investment destinations for Chinese game makers by virtue of its geographic proximity and cultural similarity to China. This emerging market for smartphones is driving huge demand for mobile games, but also offers favourable conditions for the internationalisation strategies of Chinese game providers.

However, while capitalising on market trends, game producers must heed local regulatory requirements. This article analyses the key points of compliance for game companies venturing into Southeast Asia.

Distribution management, regulations

In recent years, Vietnam has been recognised as one of the most promising markets in Asia. Operating games in Vietnam requires two key licences. One is the company¡¯s operation licence. The current Decree No.72/2013/ND-CP on the management, provision and use of internet services and online information, issued by the Ministry of Information and Communications (MIC) of Vietnam, has clear provisions on the access, classification, rating and contents of online games.

Games are classified into four categories, from G1 to G4. The G1 category, which refers to multiplayer interactive games hosted on the developer¡¯s server system, draws most concern among international developers, as they are required to obtain a special licence to operate G1 games.

The other is the product licence. Vietnam has stringent regulations on licensing game distribution. Not all publishers may have the resources or capability to complete the application process, considering the various qualifications required and the lengthy review process. Therefore, game makers must recognise the importance of elaborate preparation before entering the Vietnamese market.

In Indonesia, the Ministry of Communications and Informatics enacted Regulation No. 2 of 2024 on Game Classification in January this year to impose new restrictions on game publishers. Both local and foreign game publishers are now required to register as private electronic system providers (PSEs) through the Online Single Submission (OSS) system.

Without a specific law on games, Malaysia relies on the Communications and Multimedia Act and the Communications and Multimedia Commission Act to regulate games, mostly making reference to multimedia management.

Data compliance

The past few years has seen increasing attention drawn to data compliance globally, and this is particularly true in Southeast Asian countries. While adhering to regular rules of game distribution, game makers should build up a comprehensive data compliance system.

Singapore has a well-developed data compliance legal framework. Under the Personal Data Protection Act (PDPA), data controllers and processors are to observe the ¡°notification and consent¡± obligation. Game providers must obtain players¡¯ consent before collecting, using or disclosing their personal data, except otherwise exempted by the PDPA or stipulated by laws.

In Vietnam, the Personal Data Protection Decree relies on the consent of the data subject as a lawful basis. Game makers should make clear that players¡¯ consent is valid only when it is voluntary and explicitly informed, and that silence or inactivity does not constitute valid consent. Also, game makers should notify players of the types of personal data being processed, the purpose of the data processing, the entities authorised to handle the data, as well as the players¡¯ rights and obligations.

Under the Personal Data Protection Act of Thailand, game developers are required to obtain explicit consent from players before collecting, using or disclosing their personal data, while the request for consent must be clearly communicated in plain language.

Rating system

Game rating systems are widely established in Southeast Asia to protect players of different age groups.

Vietnam mandates that game classification information be prominently displayed. Games are categorised into three ratings based on the age groups of players, namely: suitable for all; suitable for teenagers (12+); and suitable for adults (18+).

Game providers are required to display a game¡¯s age classification on the top left corner of the game¡¯s advertisements and the display when players are using game services. In case the rating does not meet relevant regulations, the MIC may require providers to amend the rating in writing within 10 working days.

Indonesia’s Regulation No. 2 of 2024 introduces new age ratings to supersede the rating system under Regulation No. 11 of 2016 on the Classification of Electronic Interactive Games. Games are now categorised into five age ratings based on their content, namely: 3+; 7+; 13+; 15+; and 18+.

Under the regulation, publishers are required to reclassify a game in case of any changes or updates made to the game contents. Failure to rate or rerate games as stipulated may result in administrative penalties, including the termination of game access in worst cases.

Singapore places significant emphasis on the protection of minors. Since 28 April 2008, the country has adopted the Video Games Classification system, which is made up of Advisory 16 (Suitable for ages 16 and above); and M18 (Suitable for ages 18 and above). The M18 rating is a restricted category, requiring retailers to verify players¡¯ age at the point of sale. The sale of video games is also regulated by the Films Act. Game providers selling restricted M18 video games to teenagers under 18 may face prosecution.

Jeff Yang is a director at Wang Jing & GH Law Firm