KUCHING: Malaysia needs to shift from being merely a production base to becoming a country that creates and owns content and intellectual property (IP) to ensure its digital creative industry remains competitive regionally and globally. Malaysia Digital Economy Corporation (MDEC) chief executive officer Anuar Fariz Fadzil said Malaysia could no longer rely on competitive costs as its main strategy to attract and retain the digital content industry. Instead, the country must focus on excellence, quality, innovation, talent and developing local IP with commercial value in international markets. "Our future lies in driving excellence, producing high-quality works and building value from the talent and creativity of Malaysians," he said at the "Building a Sustainable Ecosystem for the Digital Content Revolution" session on the third day of the Borneo Animation & Games Festival (BAGFest) 2026 at the Pullman Hotel Kuching. The session also featured Sarawak Digital Economy Corporation (SDEC) chief executive officer Datuk Sudarnoto Osman and Enfiniti Group president and chief dream maker Puan Sri Tiara Jacquelina Eu Effendi, with discussions covering talent development, funding opportunities, technological innovation and regional collaboration. Anuar said Malaysia's strengths included competitive operating costs, English proficiency, local talent and infrastructure capable of supporting international companies. However, he said being a low-cost production base would not be sufficient in the long term, particularly as regional countries developed their own capabilities. As such, he stressed the need for Malaysia to move up the value chain of the digital creative industry. "We need to shift from 'Made in Malaysia' to 'Made by Malaysians'. The question is no longer simply where the content is produced, but who creates it, who owns the IP and who benefits from its economic value." Anuar said Malaysia's experience as an outsourcing base over several decades should not be viewed as a disadvantage. Instead, the period