{"id":39915,"date":"2021-05-03T16:07:05","date_gmt":"2021-05-03T08:07:05","guid":{"rendered":"https:\/\/investpenang.gov.my\/malaysias-global-business-services-market-to-grow-to-rm6b-says-mdec\/"},"modified":"2025-11-28T15:19:47","modified_gmt":"2025-11-28T07:19:47","slug":"malaysias-global-business-services-market-to-grow-to-rm6b-says-mdec","status":"publish","type":"post","link":"https:\/\/investpenang.gov.my\/zh-hans\/malaysias-global-business-services-market-to-grow-to-rm6b-says-mdec\/","title":{"rendered":"Malaysia\u2019s Global Business Services Market to Grow to RM6b, says MDEC"},"content":{"rendered":"

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” el_class=”sec-inner-banner” css=”.vc_custom_1703741584745{background-image: url(https:\/\/investpenang.gov.my\/wp-content\/uploads\/2023\/12\/contact-banner-bg.jpg?id=20253) !important;}” z_index=””][vc_column][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”inner-banner-row”][vc_column_inner][vc_column_text]<\/p>\n

Malaysia\u2019s Global Business Services Market to Grow to RM6b, says MDEC<\/h1>\n

[\/vc_column_text][vc_separator type=”normal” el_class=”red-separator” color=”#ee4023″ transparency=”1″ thickness=”2″ up=”15″ down=”15″][vc_column_text css=”” el_class=”white-text”]<\/p>\n

3 May 2021<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1703764846254{background-color: #f3f5f8 !important;}” z_index=””][vc_column el_class=”fade-in animate”][vc_empty_space height=”120px” el_class=”height-x120″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=””][vc_column_inner][vc_single_image image=”29715″ img_size=”full” qode_css_animation=”” el_class=”single-featured-image”][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”60px” el_class=”height-x60″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”content-row”][vc_column_inner][vc_column_text]May 3 – MALAYSIA\u00a0<\/span>is expected to grow its global business services (GBS) market size from US$1.3 billion in 2019 to US$1.5 billion (RM6.15 billion) by the end of 2024, based on a report from GlobalData Findings, said Malaysia Digital Economy Corp (MDEC) senior VP (investment and brand) and chief marketing officer Raymond Siva.<\/span><\/p>\n

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\u201cOn that account, we are in a position of strength to bring more foreign direct investments (FDIs) to this sector. The government\u2019s commitment to improving digital infrastructure and providing a pipeline of digitally-ready workforce allows us to reinvent ourselves as the preferred location for high-value GBS such as robotic process automation (RPA) analysis, artificial intelligence (AI) and data-led processing and cyber security,\u201d he said in a recent statement.<\/span><\/p>\n

MSC Malaysia currently consists of 579 active GBS companies. Of the total, 57% comprises FDIs.<\/span><\/p>\n

Some 30% of the foreign GBS include Forbes Global 2000 and Fortune 500 companies such as HSBC Electronic Data Processing (M) Sdn Bhd, Jabil Global Business Services and Dassault Syst\u00e8mes SE.<\/span><\/p>\n

GBS is MSC Malaysia\u2019s largest contributor in terms of performance although the active numbers only account for 20% of the total where they add up to investments (50%), exports (66%) and new job opportunities (61%).<\/span><\/p>\n

Since 2010, the number of GBS centres in the Asean region has increased to 70%.<\/span><\/p>\n

Malaysia hosts more than a third of these centres followed by the Philippines and Singapore.<\/span><\/p>\n

The economic slowdown caused by the Covid-19 pandemic has caused many problems to the GBS industry.<\/span><\/p>\n

However, opportunities such as continuous cost pressure, increasing market volatility, technology-driven disruptions to the globally connected value chains have turned GBS into transformation drivers for organisations.<\/span><\/p>\n

Siva believed that the role of digital technology and services is evident, especially during the pan<\/span>demic which has led to further acceleration of digitalisation. In turn, it has accentuated GBS as a key pillar for an organisation\u2019s resilience and agility.<\/span><\/p>\n

\u201cMany organisations are relying on GBS to help them explore and deliver innovation, automation, advanced services and new ways of working. The scope of GBS now includes finance, information technology, human resource (HR) and procurement, and other functions that can be delivered onshore or offshore,\u201d he added.<\/span><\/p>\n

The State of the Shared Services\u00a0<\/span>Market Report survey revealed that Malaysia\u2019s shared services and outsourcing (SSO)\/GBS practitioners stated that the rapid evolution and expansion of the digital economy is a key factor in driving the GBS industry forward.<\/span><\/p>\n

It added that the integration of digital technology has redefined companies in terms of process excellence, human capital management, data and technology skills development, and digital workforce in the shape of an RPA-enabled workforce.<\/span><\/p>\n

\u201cThe trend is clear in Malaysia; companies are leveraging the\u00a0<\/span>GBS model to adopt and accelerate digital transformation, shifting focus from cost arbitrage to value-driven services,\u201d said Siva.<\/span><\/p>\n

Finance, HR and customer experience are the most popular services, while the top range of services now include intelligent automation and data analytics.<\/span><\/p>\n

The major factors that encourage more and more companies to outsource their business activities are value add and cost-saving from streamlining and centralising core functions.<\/span><\/p>\n

Companies also realised the importance of digitalisation as a key enabler where digital-first processes are a prerequisite to enhance customer and employee experience, while the most critical enabling criteria are the availability of skills and expertise in the new digital technologies.<\/span><\/p>\n

\u201cMalaysia is now home to nearly half of all analytics-based services in Asean. To accelerate this growth, MDEC is engaging the industry to listen to their needs, develop progressive and conducive policy and regulatory framework, and a robust pipeline of digital talents,\u201d Siva explained.<\/span><\/p>\n

The Malaysia Digital Economy Blueprint would drive the country\u2019s high value-added economy and to become a net exporter of homegrown technologies and digital solutions through various phases until 2030.<\/span><\/p>\n

These would complement the rest of the national digital economy development initiatives, such as the country\u2019s GBS sector, in the coming years which would go a long way towards boosting investor confidence and for these companies to establish Malaysia as their preferred base to other emerging GBS locations such as India and China.<\/span><\/p>\n

\u201cMDEC will continue to lead the nation\u2019s digital economy transformation towards the aspiration of Malaysia 5.0, enabling a society that is deeply integrated with IR4.0 technology such as the Internet of Things, data analytics, AI and blockchain. We have embarked on initiatives to empower more digitally-skilled Malaysians, enable digitally-powered businesses and attract more digital investments,\u201d he added.<\/span><\/p>\n

Meanwhile, Outsourcing Malaysia chair Cheah Kok Hoong said Malaysia has seen its GBS industry sustain during the pandemic as it was supported by a conducive business environment and access to talent, despite the current conditions and challenges.<\/span><\/p>\n

\u201cSuch GBS services provided are important supporting functions for the industry and businesses at large, and we\u2019ll continue to support our members and industry together with the government,\u201d he said.<\/span><\/p>\n

On the other hand, Contact Centre Association of Malaysia president Raymond Devadass said the global customer management and experience industry is transforming due to process automation, search engine optimisation, AI and machine learning.<\/span><\/p>\n

\u201cThe pace of change is accelerating, fuelled by technology and changes in customer expectations. The industry in Malaysia has already begun to upskill our workforce into higher-value roles, where complex customer interaction meets technology, resulting in enrichment of customer services and experiences,\u201d he said.<\/span><\/p>\n

This would enable the country to become a location of choice for companies to expand or establish new customer management delivery centres.<\/span><\/p>\n

Malaysia has launched MSC Malaysia to make the country a global ICT innovation hub where MDEC has ventured into the SSO industry during the mid-2000s.<\/span><\/p>\n

The efforts have been expanded in 2011 to develop the digital economy by venturing into the GBS sector and its related sectors.<\/span><\/p>\n

Source: The Malaysian Reserve<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”120px” el_class=”height-x120″][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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