Southeast Asia has always been one of the key investment destinations for Chinese game makers due to its geographical proximity and cultural similarity with China. This emerging smartphone market not only drives huge demand for mobile games, but also provides favorable conditions for the internationalization strategies of Chinese game providers.
However, while taking advantage of market trends, game makers must also be mindful of local regulatory requirements. In this article, we analyze key compliance considerations for game companies expanding into Southeast Asia.
Distribution management and regulations
In recent years, Vietnam has been recognized as one of the most promising markets in Asia. There are two important licenses required to operate a game in Vietnam. The first is a company operating license. 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 of Vietnam (MIC) has clear provisions regarding the access, classification, rating and content of online games.
Jeff Yang
director
Wang Jing & GH Law Firm
Games are divided into four categories, from G1 to G4. The G1 category, which refers to multiplayer interactive games hosted on the developer's server system, is of most concern among international developers, as they need to obtain a special license to operate a G1 game.
The other is product licensing. Vietnam has strict regulations regarding game distribution licensing. Given the various qualification requirements and the lengthy review process, not all publishers may have the resources or capabilities to complete the application process. Therefore, game makers need to be aware of the importance of thorough preparation before entering the Vietnamese market.
In Indonesia, the Ministry of Communications and Informatics enacted Regulation No. 2 of 2024 on Games Classification in January this year, imposing new restrictions on game publishers. All local and foreign game publishers are now required to register as Private Electronic System Providers (PSEs) through the Online Single Application (OSS) system.
In Malaysia, as there is no specific legislation on gaming, gaming is regulated under the Communications and Multimedia Act and the Communications and Multimedia Commission Act, with primary reference to the Multimedia Management.
Data Compliance
In recent years, data compliance has received increasing attention globally, especially in Southeast Asian countries. While adhering to the normal rules of game distribution, game makers need to build comprehensive data compliance systems.
Singapore has a well-developed legal framework for data compliance. Under the Personal Data Protection Act (PDPA), data controllers and processors must comply with “notice and consent” obligations. Game providers must obtain players' consent before collecting, using or disclosing personal data, unless exempted by the PDPA or otherwise required by law.
In Vietnam, the Personal Information Protection Law relies on the consent of the data subject as the legal basis. Game makers must make it clear that player consent is only valid if voluntary and explicitly informed, and that silence or inactivity does not constitute valid consent. Game makers must also inform players of the types of personal data being processed, the purposes of data processing, the organizations authorized to handle the data, and the players’ rights and obligations.
Under Thailand's Personal Data Protection Act, game developers are required to obtain explicit consent from players before collecting, using or disclosing personal data, and the request for consent must be clearly communicated in plain language.
Rating System
Gaming rating systems are widely established in Southeast Asia to protect players of different age groups.
In Vietnam, it is mandatory to prominently display classification information for games. Games are categorized into three ratings based on the age group of the players: suitable for everyone, suitable for teenagers (12 years and above), and suitable for adults (18 years and above).
Game providers must display the age rating of their games in the top left corner of their game advertisements and on display when players use their gaming services. If the rating does not meet the relevant regulations, the MIC may request the provider in writing within 10 business days to correct the rating.
Indonesia's Regulation No. 2 of 2024 introduces new age ratings to replace the rating system of Regulation No. 11 of 2016 on the Classification of Electronic Interactive Games. Games are now classified into five age ratings based on their content: 3+, 7+, 13+, 15+ and 18+.
The regulation requires publishers to reclassify their games if there are any changes or updates to the game content. Failure to rate or re-rate a game as required may result in administrative penalties, including in the worst case scenario, suspension of access to the game.
Singapore places great importance on protecting minors. Since 28 April 2008, the country has adopted a video game classification system, consisting of Advisory 16 (for ages 16 and over) and M18 (for ages 18 and over). The M18 rating is a restricted category, and retailers must verify the player's age at the time of sale. The sale of video games is also regulated by the Cinema Act. Game providers who sell M18 video games, which are restricted to teenagers under 18, may be prosecuted.
Jeff Yang is a director at Wang, Jing & GH Law Firm.
Wang Jing & GH Law Firm
Central Tower 14th and 17th floors
No.5 Xi'an Village Road, Zhujiang New Town
510623 Tianhe District, Guangzhou, China
Phone: +86 20 3564 1888
Fax: +86 20 3564 1899
Email: [email protected]
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