Singapore’s E-Sports Ambitions: Tapping into a Billion-Dollar Industry

E-sports Gains Ground as a Viable Career Path Amidst Growing Opportunities

SINGAPORE: Initially, like many parents, Ms. Jolene Poh’s family was apprehensive about her interest in gaming during her primary school years, fearing it might interfere with her studies. However, when she began winning prizes—ranging from money to gaming equipment, even a laptop—support from her family increased. “My mum still emphasized that studies come first,” recalled Ms. Poh, 27, who began competing in the popular game League of Legends at the age of 17.

Fast forward a decade, and Ms. Poh now finds herself as a member of Singapore’s first women’s e-sports team, which secured a silver medal at the Hanoi Southeast Asian Games this past May. She balances her passion for gaming with a full-time job in league operations at an e-sports company, all while pursuing part-time studies at the Singapore University of Social Sciences.

Ms. Poh’s experience mirrors the evolution of e-sports in Singapore—a pursuit that was once often linked to addiction but is now increasingly recognized as a legitimate career path for many.

As Singapore strives to become a premier destination for top-tier e-sports tournaments, it will make history in October by being the first Southeast Asian country to host The International (TI), the largest global tournament for the multiplayer online game Dota 2. Last year, TI offered an astounding total prize pool exceeding US$40 million (S$55.3 million).

This achievement aligns with Singapore’s ambition to capture a share of the booming e-sports market. According to market research firm Newzoo, the global e-sports industry’s revenue surged from US$996 million (S$1.37 billion) in 2020 to US$1.14 billion in 2021, with projections suggesting it will reach US$1.38 billion this year.

“The e-sports sector is expected to generate nearly US$1.6 billion in revenues globally in 2023, double the US$776 million earned in 2018, with East Asia contributing one-third of this revenue,” noted Mr. Guillaume Sachet, a partner in advisory at KPMG Singapore, citing an industry report.

The economic potential of e-sports has not gone unnoticed. Ms. Ong Ling Lee, the executive director for sports and wellness at the Singapore Tourism Board (STB), stated, “With Singapore’s growing reputation as an e-sports destination, we continue to attract gaming companies with regional ambitions.”

The rise of e-sports also opens branding opportunities for Singapore, positioning it as a go-to destination for e-sports fans worldwide. According to Statista, the global e-sports audience expanded from 397.8 million in 2019 to 435.9 million in 2020, with expectations of reaching 577.3 million by 2024.

Local e-sports talents, companies, and associations emphasized various factors that enhance Singapore’s appeal to tournament organizers, including the nation’s excellent technology and business infrastructure.

Capitalizing on these advantages is crucial for growing Singapore’s e-sports industry while simultaneously boosting the tourism sector as it rebounds after two challenging years.

Understanding the E-Sports Landscape
The business model of e-sports closely resembles that of traditional sports, according to industry insiders. E-sports athletes compete as part of professional teams managed by companies. They receive a basic salary, a portion of the prize money, and revenues from sponsorships and merchandising. Streaming video game content also serves as an additional income source.

Salaries can vary significantly, influenced by factors such as the popularity of the game and the financial capability of the managing company. Top-tier e-sports athletes in Singapore reportedly earn between S$3,000 and S$5,000 a month, while those in games with smaller followings may earn less than S$2,000.

Despite the relatively low pay compared to other markets, Singapore has produced successful players. Renowned Dota 2 professional Daryl Koh, known as “iceiceice,” has accumulated over US$1.8 million in prize money since starting his career in 2011. Similarly, former player Wong Jeng Yih, or “nutz,” earned more than US$230,000 before retiring last year.

Achieving such success requires immense dedication. Competitive players often engage in rigorous training routines, including physical exercise and game practice sessions, to refine strategies and eliminate bad habits.

Mr. Kelvin Tan, the secretary-general of the Singapore E-sports Association (SGEA), emphasized that becoming an e-sports athlete requires discipline and holistic training, debunking the stereotype that it’s merely about playing video games for hours on end.

However, many players in Singapore must juggle their e-sports ambitions with other commitments, such as school and work, before they can compete in significant tournaments. Players must first hone their skills and climb the game rankings to attract attention from teams.

Capitalizing on the E-Sports Boom
The explosive growth of digital devices and the pandemic-induced shift to indoor entertainment have fueled the e-sports industry’s expansion. Countries worldwide are recognizing the potential of this lucrative sector, and Singapore is no exception.

The city-state’s investment in digital infrastructure has been crucial in attracting high-profile e-sports events. Ms. Elicia Lee, vice-chairperson of the Singapore Games Association (SGGA), stated, “With high internet speeds and venue options, Singapore has the ideal infrastructure to host e-sports events, as demonstrated by our ability to host significant tournaments.”

Hosting prominent e-sports competitions enhances Singapore’s brand and contributes to developing the local gaming industry. While the exchange of expertise during these major events benefits a limited number of local players, there is hope that increased exposure will create more opportunities for local companies.

However, experts point out that Singapore’s e-sports industry is still relatively nascent compared to more established markets in the Americas and Europe. Countries like South Korea, Japan, and China are considered stronger players in the e-sports landscape, with larger populations that provide a more extensive talent pool and larger audiences for events.

A Bright Future for E-Sports in Singapore?
Despite these challenges, stakeholders agree that Singapore’s e-sports industry has made considerable progress during the pandemic. The lockdowns encouraged more people to engage in online entertainment, including e-sports.

Organizations are working to raise awareness and interest in e-sports among the wider community. For instance, Scoga has established an E-sports Academy to engage and educate young people about the sport. Meanwhile, The Gym hosts frequent tournaments, including weekly gaming events called “FriYay Night Gaming.”

As the industry evolves, both local talents and aspiring players face significant hurdles. There remains a need for parents to embrace e-sports as a legitimate career path rather than dismissing it as mere gaming. As professional gamers like Mr. Reitmeier suggest, promoting e-sports as a pathway to developing cognitive skills may help shift public perception.

Ultimately, the future of e-sports in Singapore depends on building a robust ecosystem that supports grassroots development and attracting corporate sponsorship. By fostering a supportive environment, Singapore can position itself as a key player in the global e-sports arena, ensuring that the next generation of gamers has the opportunities they need to thrive.

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