Malaysia attracts RM3b investments in SSO sector

GEORGE TOWN:  Malaysia attracts over RM3 billion of new investments in the shared services and outsourcing (SSO) industry to date since January.

Multimedia Development Corp Sdn Bhd vice-president of global business services, Michael Warren, said the tremendous growth was driven by the expansion  in Asean region.

"The companies, including the multinational corporations in Malaysia, are starting to turn to SSO," he told reporters at the sidelines of the third Penang SSO Conference here on Tuesday.

Warren said the weakening ringgit has also attracted global companies to invest in Malaysia amid its talent pool.

Meanwhile, InvestPenang's director, Datuk Lee Kah Choon, said the growing trend of SSO in Malaysia was also fueled by global companies eyeing growth potentials in the Asean Economic Community which has a population of 600 million people.

He said Penang's services sector was likely to overtake the manufacturing sector as the key economic driver this year, driven by growing interest in tourism-related products and supporting services, namely banking and logistics.

Lee said the services sector was expected to contribute about 49% to the state's estimated gross domestic product (GDP) of RM60.6 billion this year.

The manufacturing sector, which had previously contributed about 50% to the GDP, was likely to contribute about 47% this year, he said.- Bernama