ISKANDAR PUTERI: The shared services and outsourcing industry continues to be a bright spot for Malaysia.
Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud said the sector also known as global business service (GBS) is expected to grow by between 10% and 15% over the next three years.
“The GBS sector is indeed a bright spot for Malaysia’s economy,” he said before launching Outsourcing Malaysia’s (OM) southern office here.
Azman said the sector has been one of the core contributors in Malaysia’s economic development and aim to become a high income and knowledge-based economy.
“It is worth noting that the performance has surpassed the target set under the Business Services National Key Economic Area (NKEA) of generating 43,300 jobs by 2020,” he added.
Azman pointed out that as at December, 2016, Malaysia was home to 499 global business companies that had resulted in the creation of more than 93,000 jobs
“We are delighted that the GBS sector is poised to register stronger growth as global companies strive to run their businesses more effectively and efficiently.
“More importantly, these jobs, which provide an average monthly salary of RM7,000, are very much in line with the Government’s aim to create middle-to-high income employment opportunities,” he said.
Azman added Malaysia’s strategic location in the heart of Asean, world class infrastructure, unmatched connectivity, large talent pool as well as pragmatic and business friendly policies had attracted these companies to set up base here.
He added these factors had made Malaysia a cost competitive base for companies to locate their shared services and outsourcing activities in the country.
Azman also said GBS Iskandar was one of the choice locations for companies that wanted to leverage on Malaysia’s strategic location and value proposition to set up their outsourcing centres and back offices.
“I am delighted that just three years after it was established, i2M Ventures has successfully engaged with nine companies to gain a foothold in GBS Iskandar.
“Some of the big names that are already here include Frost & Sullivan, Brandt International, VTC, DayThree, Vistra and Odinsoft,” he added.
Azman noted GBS Iskandar was well positioned to attract more investors given the vibrant ecosystem available in Iskandar Malaysia and Johor.