KUALA LUMPUR – Malaysia Digital Economy Corporation (MDEC) is accelerating plans to attract high-value digital global business services (GBS).
The GBS market in Malaysia is expected to grow from US$1.3 billion (RM5.34 billion) in 2019 to US$1.5 billion by end-2024, said chief marketing officer Raymond Siva.
“On that account, we are in a position of strength to bring more foreign direct investment (FDI) to this sector,” he said.
MSC Malaysia currently counts 579 active GBS companies within its fold, with 57% being FDI, he said in a statement today.
Established by the government to accelerate the growth of the country’s digital economy, the MSC Malaysia status provides eligible ICT-related businesses, both local and foreign, with a wide range of incentives, rights and privileges to promote continued growth.
MSC Malaysia was formerly known as Multimedia Super Corridor. Since its inception in 1996, the MSC Malaysia programme has managed to drive the country’s digital economy to new heights.
Raymond said although the number of active GBS companies accounts for about 20% of the total number of active MSC Malaysia companies, GBS is the largest contributor to MSC Malaysia’s performance, adding up to 50% of investments, 66% of exports and 61% of jobs created.
"Besides, the government’s 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 analysis, artificial intelligence, data-led processing and cybersecurity.
“The role of digital technology and services is evident, especially following the outbreak of the Covid-19 pandemic, which has led to further acceleration of digitalisation and accentuated GBS as a key pillar for an organisation’s resilience and agility.
“Many organisations are relying on GBS to help them explore and deliver innovation, automation, advanced services, and new ways of working,” he said, adding that the new scope of GBS now includes finance, information technology, human resources, and procurement.
Furthermore, he said the government’s support outlined in the Malaysia Digital Economy Blueprint (MyDigital) through various phases until 2030 to drive the country’s high value-added economy and to become a net exporter of homegrown technologies and digital solutions will complement the rest of the national digital economy development initiatives, such as the country’s GBS sector in the coming years. – Bernama, April 30, 2021
