OUTSOURCING MALAYSIA LAUNCHES SOUTHERN OFFICE IN ISKANDAR MALAYSIA
Outsourcing Malaysia (“OM”), a chapter of the National ICT Association of Malaysia (“PIKOM”), launched its southern office in Iskandar Malaysia in tandem with the rapid growth of the GBS (Global Business Services and Shared Services & Outsourcing “SSO”) industry in Iskandar Puteri, Iskandar Malaysia.
The office, part of OM’s initiative to establish world-class GBS eco-systems across Malaysia, will facilitate the growth of the local industry while enticing the world to Malaysian shores. The Malaysian Investment Development Authority (MIDA) and i2M Ventures Sdn. Bhd – a wholly owned subsidiary of Khazanah Nasional Berhad are among OM’s strategic partners responsible for the development of strategic investment promotion initiatives for the Global Business Services (GBS) and Shared Services & Outsourcing (SSO) sector in Iskandar Puteri, Iskandar Malaysia.
OM’s office is also part of its commitment to support industry members who have established operations in Iskandar Puteri via the GBS ISKANDAR initiative. As part of its activities with GBS ISKANDAR, OM will work closely with the government and GBS companies in developing key areas such industry knowledge, talent pool, technology, legal frameworks on intellectual properties and more.
GBS ISKANDAR is an initiative by i2M Ventures and it is a specialised programme to facilitate businesses to locate GBS Operations in Iskandar Puteri, Iskandar Malaysia. With GBS ISKANDAR, companies will be able to enjoy expert facilitation in order to meet their GBS location requirements, covering key areas such as talent, infrastructure, livability and incentives.
Thus far, nine companies have established outsourcing centres and back office operations in facilitated by GBS ISKANDAR. They include Frost & Sullivan, Courts Asia, Vistra, Imagineering Institute, Nityo Infotech, Odinsoft, Brandt International, VTC and DayThree. The latter three are OM member companies.
With its unique value proposition, GBS ISKANDAR is poised to strengthen Malaysia’s competitive ability to capture a larger share of the growing global business services market pie, which is expected to reach RM6.5 billion by 2020. To date, GBS ISKANDAR has created over 2,800 professional jobs within the GBS sector while successfully attracting over RM1.4 billion (USD315 million) in committed investments.
On congratulating OM for the opening of its southern office, Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA) said, “MIDA, being a permanent member of the GBS ISKANDAR Steering Committee, welcomes the presence of Outsourcing Malaysia towards our common goal of building a world-class business environment in Malaysia. Being one of the drivers to position Malaysia as a global hub for high-value outsourcing, OM adds to our on-going efforts in creating high-value and knowledge-based jobs for Malaysia. OM’s presence here will further catalyse the growth of Iskandar Puteri as a thriving business services hub in the region.”
Dato’ Azman further added that shared services activities are definitely one of MIDA’s focus areas. “Companies that incorporate shared services activities in Malaysia as part of their qualifying services are eligible for the Principal Hub (PH) scheme, a game changer introduced in 2015. As at December 2016, MIDA has approved a total of 19 PH companies, representing a diverse spectrum of industries ranging from E&E, F&B, Oil and Gas as well as consumer products. The migration of shared services functions has led to the creation of high value job opportunities, which in the long run will enhance the quality of Malaysia’s talent pool through exposures on international best practices and standards.”
“It’s about providing more location options for companies – local or foreign to establish GBS operations in Malaysia where it best suits their business requirements. Given its strategic location as the World’s Best Nearshore to Singapore, its lower cost base, the availability of a highly skilled, multi-lingual talent pool and the many incentives provided by the government, the GBS ISKANDAR initiative based in Iskandar Puteri is poised to grow. It will become the ideal business services hub for Multinational Companies (MNCs) and Regional Headquarters (RHQs) for companies especially those based in Singapore,” shared OM Chairman, Cheah Kok Hoong.
“We are looking forward to our continued collaboration with MIDA, OM and other partnering agencies as well as the Johor state government to attract more quality investments into Iskandar Puteri,” said Zulfiqar Zainuddin, Managing Director of i2M.
The local GBS sector is expected to see a compounded annual growth rate (“CAGR”) of 10%-15% for the next three years[i]. In 2016 alone, more than 6,000 skilled jobs were created for 85,000 jobs – surpassing the target set for jobs to be created by 2017.
About Outsourcing Malaysia
Outsourcing Malaysia (OM), an initiative of the outsourcing industry and a chapter of PIKOM – the country’s national ICT industry association, is envisioned to promote and develop Malaysia is outsourcing services industry as a global hub for high-value outsourcing. Supported by its founding partner – the Malaysia Digital Economy Corporation (MDEC) – and spearheaded by a group of prominent industry leaders from the global services industry, OM focuses on enabling both buyers and providers to work together on addressing service needs within the aegis of global best practices and competencies.
PIKOM, The National ICT Association of Malaysia is the association representing the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 1400 comprising companies involved in a whole spectrum of ICT products and services which commands 80% of the total ICT trade in Malaysia.
[i] Outsourcing Malaysia’s GBS Business Services Outlook Report – Buyers’ Perspective 2015