MDEC accelerates plans to attract high-value digital global business services
KUALA LUMPUR: Malaysia Digital Economy Corporation (MDEC) is accelerating plans to attract high-value digital Global Business Services (GBS).
Raymond Siva, senior vicepresident, investment and brand, and chief marketing officer, said GBS market size in Malaysia is expected to grow from US$1.3 billion in 2019 to US$1.5 billion by end-2024.
“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 per cent being FDI, he said in a statement, yesterday.
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 the Multimedia Super Corridor, and known as the MSC in Malaysia. Since its inception in 1996, the MSC Malaysia programme has managed to drive the country’s digital economy to new heights.
Siva said although the number of active GBS companies accounts for about 20 per cent of the total number of active MSC Malaysia companies, GBS is the largest contributor to MSC Malaysia’s performance, adding up to 50 per cent of investments, 66 per cent of exports and 61 per cent 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 (RPA) Analysis, Artificial Intelligence (AI) and 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 accentuate 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 BGS now includes finance, information technology, human resource, 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 valueadded economy and to become a net exporter of home-grown 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.