KUALA LUMPUR, Sept 13 — When Malaysians hear the names of massive crocodile Bujang Senang, legendary bird Jentayu, and the Chinese mythical beast Nian — three cute anime characters may not be the first things that come to mind.
Like its namesake that means "folklore”, Malaysian VTuber agency Projek Hikayat aims to bring these local legends to life through its talents: Akiru Nobu, Aozaaki Maeena, and Kurisu Kowa.
"Since VTubers are often considered part of the broader anime culture, it seems like the wider anime fanbase either isn’t aware of VTubers or isn’t particularly interested in them.
"In my opinion, I’d estimate that around 20 to 30 per cent of anime fans are currently engaged with VTuber content,” said Jonathan Yen, 25, who founded the agency in 2021.
Over at Hoshizora Entertainment, the same mission is being undertaken with their pair of talents: Skye and Arashi Nebula.
"Skye has been with us since the start in 2022, while Nebula joined us recently in February 2024.
"They’ve both grown to be amazing talents and fun people to work with,” said its managing director Chong Ziqi, 28.
These two agencies are part of the race to grab a slice of the growing worldwide pie of VTubers — or "virtual YouTubers” — who are talents who stream through the online video sharing platform, behind a digital avatar of colourful anime-inspired characters.
How to survive in Malaysia
For every Projek Hikayat and Hoshizora, however, there were also agencies that have failed to survive.
MyHoloTV, one of the pioneers when it was founded in 2020, has ceased operations in May this year despite having at its peak 11 talents in the stable, including local star Liliana Vampaia — which has so far continued streaming under an altered contract.
Similarly, Project Kavvaii also closed shop in February this year after operating since 2021 with three talents — despite the backing of a massive parent company, low-cost airline AirAsia Group Bhd.
Yen and Chong said the biggest hurdle for local agencies and talents is simply the market. Not only there is smaller room to grow, but they also have to compete with juggernaut from Japan and the US such as Hololive Productions, Nijisanji, and VShojo.
"While Japanese VTubers can consistently produce high-quality content multiple times a week, Malaysian VTubers may only manage this once a month due to differing resources,” Yen told Malay Mail.
They also said that currency fluctuations and the fast pace of technological advancements mean that upgrading technology is a costly endeavour for smaller agencies.
Added to that, the fans are also fragmented — as in the case in many sectors — to those in different ethnic groups such as Malays and Chinese, those who prefer to watch international talents, and those who only follow local ones.
As a result, Yen said local talents are often targetting the same demographic — with the Malaysian community consisting of a few thousand fans at most.
In comparison, the massive and loyal audience in neighbouring Indonesia have seen the country producing dozens of talents, including nine so far under Hololive. Its biggest talent Kobo Kanaeru, for example, has over 2.5 million subscribers on YouTube.
"Despite efforts to engage through TikTok, X, and Instagram, the constantly shifting demographics on these platforms make it challenging to effectively connect with their target audience,” said Chong.
Where to next for talents?
There is still however room to grow for local agencies, with Projek Hikayat recently scoring collaborations with the police, and a nationwide anti-corruption campaign with the local media sector.
Yen said, however, that while there are opportunities to work as designers and animators of VTuber characters in Malaysia, there are also challenges.
Many companies require sticking to specific animation styles, such as those seen in popular Malaysian animations like Upin & Ipin or Ejen Ali.
"Not following these styles could limit your opportunities, and you might need to move to places like the Philippines or China to pursue this field,” said Yen.
So what’s next if you’re interested in VTubing? Yen said one needs to be pragmatic, above all.
"Begin by role-playing as a VTuber with friends to gauge your interest and enjoyment of the role,” he said.
"Starting as an independent VTuber can be financially demanding, so consider using free or affordable models to create your avatars.”
According to Yen, it is also necessary of for an aspiring VTuber to understand their target audience and tailor their content effectively,
"Additionally, being entertaining is crucial, which is a common challenge for VTubers globally,” he said.
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