Yasmin Mahmood: MSC Malaysia reports stellar revenue growth for 2014

  • TECH
  • Monday, 11 May 2015

VISIONARY: MDeC's Datuk Yasmin Mahmood wants to create more global IT heroes.

The MSC Malaysia initiative which now has 2,700 active companies has reported an 11% increase in revenue for 2014, a huge turnaround from the marginal increase of 3% the year before.

The RM38.52bil in revenue works out to MSC Malaysia contributing 1.3% to the country’s GDP (gross domestic product), a 14% growth from 2013.

Ng Wan Peng, MDeC chief operating officer, said the Global Business Services sector, which specialises in shared services and outsourcing, was the main contributor, in particular Knowledge Process Outsourcing (KPO) which deals with the handling of high-level tasks.

KPO  in the finance and accounting sector showed a 34% export increase.

“It was an outstanding year,“ said Datuk Yasmin Mahmood, chief executive officer of the Multimedia Development Corporation (MDeC), adding that total export sales from MSC Malaysia companies also grew to RM13.73bil, a 11% increase from 2013. MDeC is the guardian of the MSC Malaysia.

Moving forward, Yasmin said that MDeC wants to create more local (corporate) heroes.

“Only 2% of MSC Malaysia companies reported RM100mil revenue per year such as financial services solutions provider Silverlake Axis, and app and device management solutions company Fusionex Corp Sdn Bhd. We need to create more Goh Peng Oois,” she said. Goh is the group executive chairman of Silverlake Axis and is considered to be Malaysia’s first tech billionaire.

She said MDeC is committed to providing market access to companies with global aspirations.

It has already helped open up foreign markets for companies like Vitrox Bhd which is now in Thailand, China, Vietnam, the United States, Europe, Mexico and Brazil; and MDT Innovations Sdn Bhd which has expanded to Japan, Thailand, Australia, the United States, Taiwan and Indonesia.

Vitrox specialises in vision inspections solutions while MDT Innovations specialises in IoT (Internet of Things) mobile applications.

MDeC is aware that the RM100mil revenue generating companies are still a minority. Ng said 92% of MSC Malaysia companies only make RM1mil in revenue. “Some may be comfortable with this figure if they have a skeleton staff and a product or service with a big profit margin. We are looking for companies that want to go global,” said Ng.

MSC Malaysia also saw RM20bil in new foreign and local investments. For instance, India-based Aegis Limited, a outsourcing and technology services company acquired Symphony BPO Solutions Sdn. Bhd for RM22.7mil.

MSC Malaysia companies were also responsible for 9,497 jobs, an 11% increase from 2013. The average monthly salary is RM5,677. Going forward, Yasmin said MDeC will focus on Big Data Analytics and IoT.

The MSC Malaysia initiative which began in 1996 has contributed more than RM275bil in revenue, RM206.14bil in investments and more than 147,000 jobs.

“We are very confident that MSC Malaysia will continue to play an important role as a catalyst for the ICT sector and the larger digital economy,” said Yasmin.
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