PIKOM LAUNCHES GBS MALAYSIA STRATEGIC 2022 REPORT

The Report details Malaysia’s vast potential as a high-value digital GBS hub in the southeast Asian region, and the industry’s estimated CAGR growth of 6.2% over the next ve years.

The Global Business Services (GBS) – Malaysia Strategy 2022 Report was o cially launched in July this year. This is a strategic publicprivate-partnership (PPP) initiative which was idealised in early 2021 as an industry-led Strategic Roadmap for the GBS Industry with the aim to drive the industry forward in the next 5 years from 2022 to 2027.

As a Strategic Roadmap, the report is spearheaded by GBS Malaysia, supported by Malaysia Digital Economy Corporation (MDEC), Invest Penang, Iskandar Investment Berhad (IIB), Invest KL, Invest Selangor, Cyberview, the Sarawak Digital Economy Corporation (SDEC) and the

Contact Centre Association of Malaysia (CCAM).

At the launch of the Report, Outsourcing Malaysia (OM), a chapter of PIKOM Malaysia since 2006, announced that it is now o cially known as Digital Global Business Services Council Malaysia (GBS Malaysia).

According to GBS Malaysia’s Research Partner IDC, the Malaysian GBS industry recorded approximately US$4.95 billion of businesses in 2020 and is estimated to grow at a 5-year CAGR of 6.2% to potentially reach US$6.7 billion by 2025, with the inclusion of 3rd party IT and non-IT Business Process Services, o shore service providers and captive enduser operations.

Currently, more than 250,000 employees operate within Malaysia’s GBS industry, with the industry continuing to provide a signi cant number of employment opportunities over the years, thus contributing to the country’s GDP. During the COVID-19 pandemic, the industry experienced signi cant growth and o ered employment to many Malaysians and foreigners, and continues to grow, according to the Report.

Anthony Raja Devadoss, Chairman of GBS Malaysia explained, “GBS Malaysia resonates with the constant changes in the global business services sector and we must remain relevant with the times in representing our industry in

Malaysia for the next 5 years. The Global Business Services Malaysia Strategy Report signi cantly outlays global and local companies’ focus on enhancing the skills of their employees that led to the creation of a group of more than 250,000 trained talent, including in the areas of customer experience, digital technology, nance, accounting and human resources.

“GBS companies realised the need for advanced access and to drive the leading technologies to execute innovative solutions using data analytics, digital experience, robotic process automation and arti cial intelligence for the ASEAN and Global markets,” he added.

According to Raymond Dass, Chairman of GBS Research, the pandemic has represented not-tobe-missed opportunities, and has highlighted the importance of making evidence-based, resilient, and future-proof policies.

“This National GBS Strategy is a roadmap for strengthening Malaysia’s Position as a high value digital Global Business Services Hub. It provides guidance for companies wishing to develop their own GBS roadmaps and expand their services into new areas that will alter traditional business processes and increase shareholder value,” he added.

This research scope extends to identify Malaysia as a high-value digital Global Business Services Hub in view of the country’s strengths in the areas of organisational capabilities, its talent market, niche capabilities, infrastructure, the markets and the verticals served by Malaysian companies. Additionally, Malaysia’s competitiveness with its neighbouring countries poses excellent potential in capturing Foreign Direct Investments (FDIs).

During the launch of the Report, Dr Sean Seah, Chairman of PIKOM said, “PIKOM is proud to announce that this is the rst-ever GBS Report that has been produced by GBS Malaysia in collaboration with the corridors in Malaysia - another feather in the cap for the GBS industry. PIKOM will continue to place GBS as top priority and ensure we maximise all opportunities for the Malaysian GBS players. The ndings of this report stand as testament of the success of our strategy and e orts in this industry and they also re ect the continued con dence by investors in Malaysia as a preferred hub of GBS.”

Mahadhir Aziz, CEO of MDEC states, “At MDEC, we intend to accelerate the growth further via the introduction of Malaysia Digital and along with the heavy support by the Government and e ective collaborations between publicprivate partnerships, our nation will be able to assert and consolidate its leadership position in this focus sector.”