it is not impossible, but it will be difficult.

The Malaysian infrastructure does not allow states to have equality due to the difference in local infrastructures of every state. You wont see a cyber cafe like what you have in Selangor in Terrenganu. Unless all states have the same infrastructure (decent cybercafe's with decent internet connection) it would be extremely difficult to have an interstate, yet alone a tournament in each state.

Due to the nature of these games (heavily graphics ridden) you would need at least a standard Duo Core with 8600GT to run it smoothly.