[Press Release] Promising growth in GBS sets the stage to propel Penang’s digital economy sector

[Press Release] Promising growth in GBS sets the stage to propel Penang’s digital economy sector

29 July, 2022

According to GBS Malaysia Strategy Report 2022-2027, GBS industry in Malaysia is expected to grow at a 5-year CAGR of 6.2% to US$6.7 billion by 2025, placing Penang on the right track to deepen its penetration in the digital GBS and emerging tech sectors like cloud computing, IoT, AI, data centre, cybersecurity and advanced robotics.

Penang, July 29, 2022 – Committed to grow Malaysia’s global business services (GBS) industry as a global hub for high-value services, GBS Malaysia Strategy Report 2022-2027 was established as a result of the concerted efforts from various stakeholders. GBS Malaysia Strategy Report 2022-2027 is a report that focuses on the strategic visions of GBS industry for the next five years. This initiative is spearheaded by Digital Global Business Services Council Malaysia (GBS Malaysia), National Tech Association of Malaysia (PIKOM) and Malaysia Digital Economy Corporation (MDEC), in collaboration with various state Investment Promotion Agencies (IPAs), including InvestPenang and other industry partners.

In the report, International Data Corporation (IDC), the research partner for GBS Malaysia, highlighted that Malaysian global business services industry is expected to grow at a five-year compound annual growth rate (CAGR) of 6.2% to US$6.7 billion by 2025. In particular, four core focus areas have been identified to fuel the industry growth, which are digital transformation, automation, cloud-based services, data and analytics.

Housing the second highest number of Malaysia Digital (previously known as MSC Malaysia) status companies, Penang plays a prominent role in the country’s GBS landscape. Harnessing the thriving GBS industry, Penang will continue to anchor its position as a preferred location for high value activities and knowledge driven work. Under digital economy specifically, various next-generation sectors have been identified to be Penang’s focus areas such as digital GBS, R&D as well as emerging tech sectors like cloud computing, Internet of Things (IoT), Artificial Intelligence (AI), data centre, cybersecurity and advanced robotics, among others.

Holding on the aim to engage and update business professionals and industry stakeholders on the Global Business Services (GBS) industry in Penang, InvestPenang launched the GBS Malaysia Strategy Report 2022-2027 in Bayan Lepas today.

Officiating the launching ceremony, Penang State Exco for Trade, Industry & Entrepreneur Development, YB Dato’ Haji Abdul Halim Bin Hussain said: “Being one of the main locations in Malaysia’s GBS and manufacturing landscape, Penang is in a position of strength to garner more strategic investments into the state, particularly in high value-added activities.”

“2022 is a year of celebration as Penang steps into its 50th anniversary of industrialisation. Holding onto the tagline of ‘50 Years of Excellence and Beyond’, the state strives to uphold our conducive ecosystem that is capable of stimulating the advancement of strategic industries for the next 50 years and beyond,” he added.

As the state’s investment promotion agency, InvestPenang will continue to collaborate with relevant stakeholders to further strengthen the digital economy and GBS ecosystem in Penang. “Penang will keep abreast of emerging trends and deepen our penetration into high value-added activities for sustained growth. Specifically, we are seeing digitalisation and innovation as the key drivers towards high income economy,” said Dato’ Seri Lee Kah Choon, Special Investment Advisor to the Chief Minister of Penang.

Among the state initiatives in place to propel the digital economy sector are the development of ‘GBS by the Sea’, a 296,000 sqft of Grade A office space available for digital and tech players. The state is also working with MDEC to place Penang on the right trajectory towards becoming a data centre hub.

“The digital GBS industry is a key pillar of Malaysia’s digital economy, as it not only drives innovation but also lead to the creation of high-value, high-knowledge jobs. MDEC, as Malaysia’s lead digital economy agency, will continue to accelerate Malaysia’s growth and leadership position in the digital GBS sector via the Malaysia Digital initiative, which serves to galvanise further public-private collaborations to drive investments and enable Malaysians to play a leading part in the global digital revolution,” said Mr Mahadhir Aziz, Chief Executive Officer of MDEC.

“This Global Business Services Malaysia Strategy Report by GBS Malaysia significantly outlays global and local companies’ focus on enhancing the skills of their employees in digital transformation, automation, cloud tech and data analytics. This has led to the creation of a group of more than 250,000 trained talent, including in the areas of customer experience, digital technology, finance, accounting and human resources,” said Mr Anthony Raja Devadoss, GBS Malaysia Chair.

Also present at the event are Dato’ Loo Lee Lian, Chief Executive Officer of InvestPenang; Mr Raymond Siva, Head/SVP Digital Investment Division of MDEC; Mr Raymond Devadass, GBS Report Chair and Mr Dharmaraj Sivalingam, Senior Research Manager of IDC.

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About InvestPenang

InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centres. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Centre (providing assistance to SMEs), Penang CAT Centre (for talent attraction and retention) and i4.0 seed fund (a catalyst for the start-up ecosystem).

 

For media enquiries, please contact:

Yeoh Bit Kun/ Ooi Phei Wen

bitkun@investpenang.gov.my / pheiwen@investpenang.gov.my

InvestPenang