Global business services sector to post strong growth in next 3 years

ISKANDAR PUTERI: The Global Business Services (GBS) sector in Malaysia is expected to grow between 10% and 15% over the next three years, given the fact that many companies strive to run their businesses more effectively and efficiently.

Malaysian Investment Development Authority Chief Executive Officer, Datuk Azman Mahmud, said the growth would definitely help Malaysia to become a high-income and knowlegde-based country.

He said the GBS sector has always been one of core focuses in economic development, with a total of 499 GBS companies having set up their outsourcing centres and back offices in Malaysia.

Out of this, nine was established in GBS Iskandar including Frost & Sullivan, Brandt International, DayThree, Vistra and Odinsoft.

More than 93,000 jobs were created as well.

"It is worthy to note that such performance has surpassed the target set forth under the Business Services National Key Economic Area of generating 43,330 jobs by 2020.

"More importantly, these jobs which provide an average monthly salary of RM7,000 are very much in line with the government's aim to create middle-to high-income jobs for Malaysia," he said during the launch of Outsourcing Malaysia (OM) southern office at Medini 6, here, today.

The office, part of OM's initiative to establish world-class GBS ecosystems across Malaysia, will facilitate the growth of the local industry while enticing the world to Malaysian shores.

The 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.

Azman said given its strategic location as the world's best nearshore to Singapore, its lower cost base, the availability of a high-skilled workers and many incentives provided by the government, GBS Iskandar was well positioned to attract more investors in many years to come.

To-date, GBS Iskandar has created over 2,800 professional jobs within the sector while successfully attracting over RM1.4 billion (US$315 million) in committed investments. — Bernama