Business services sector reaches RM64 bln GNI in 2017
The local global business services sector is expected to see a CAGR of 10 per cent to 15 per cent for the next three years.
KUALA LUMPUR: The business services sector continued to provide high- skilled services to the economy and increased the nation’s income, generating RM64 billion gross national income ( GNI) last year, contributed by the aerospace, shared services and outsourcing, data centre, shipbuilding and ship repair, and green technology industries.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said last year, the business services sector secured RM41.1 billion in investments, which puts the NKEA on track to achieve the overall 2020 GNI target of RM78.7 billion.
The overall investments comprised contributions from shared services and outsourcing ( SSO), green technology and aerospace projects.
“The local global business services sector is expected to see a compounded annual growth rate ( CAGR) of 10 per cent to 15 per cent for the next three years,” he said in the National Transformation Programme ( NTP) Annual Report 2017 released recently.
Mustapa said the aerospace sector has emerged as a key engine of growth in the business services sector.
It has created over 21,000 jobs since the inception of the NKEA and achieved significant expansion in 2017 with more than 200 small and medium enterprises
Datuk Seri Mustapa Mohamed, International Trade and Industry Minister
(SMEs) now involved in the aerospace industry, primarily in the aerospace manufacturing and Maintenance, Repair & Overhaul ( MRO) sub-sectors.
One of the highlights is the appointment of Composites Technology Research Malaysia (CTRM) Sdn Bhd as a single- source supplier for the manufacture and supply of Airbus A350 fan cowls.
Malaysia has also positioned itself as a critical supplier of aircraft structural components.
For instance, UMW Aerospace is the first Malaysian company to be a tier-1 supplier to RollsRoyce, with value of contract worth RM830 million as of 2017.
Meanwhile, GBS Iskandar is also poised to strengthen Malaysia’s competitive ability to capture a larger share of the growing global business services market.
To date, GBS Iskandar has created over 2,800 professional jobs, while successfully attracting over RM1.4 billion ( US$ 315 million) in committed investments.
Additionally, Malaysia has retained its third ranking in the AT Kearney’s Global Services Location Index for the past 14 consecutive years since 2004.
On top of that, Malaysia remains among the top 25 countries in the world in terms of ease of doing business which reflects the continuous effort by the government to make Malaysia an attractive business destination.
Moving forward, to continue the momentum of the industry’s development, Mustapa said the government would take proactive measures and work in tandem with the private sector to advance the development of the business services industry.
“The capacity and capabilities of local industry players will need to be cultivated in line with achieving the NTP goals and moving towards Industry 4.0,” he added. — Bernama