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Outsourcing Malaysia opens office in Iskandar Malaysia


National ICT Association of Malaysia (PIKOM) chapter Outsourcing Malaysia (OM) launched its southern office in Iskandar Malaysia in tandem with the rapid growth of the Global Business Services (GBS) and Shared Services and Outsourcing (SSO) industry there.

As part of OM’s initiative to establish world-class GBS ecosystems across Malaysia, the office will facilitate the local industry’s growth. The Malaysian Investment Development Authority (MIDA) and i2M Ventures Sdn Bhd are among OM’s strategic partners responsible for developing strategic investment promotion initiatives for GBS and SSO sectors in Iskandar Puteri, Iskandar Malaysia.

I2M Ventures is a wholly-owned subsidiary of Khazanah Nasional Bhd and operates the GBS Iskandar initiative, a specialised program to help businesses set up GBS operations in Iskandar Puteri. The initiative offers expert facilitation for GBS requirements, covering key areas such as talent, infrastructure, livability, and incentives.

The OM office will also support industry members in Iskandar Puteri through the GBS Iskandar initiative. It will work closely with the government and GBS companies to develop key areas such as industry knowledge, talent pool, technology, intellectual property legal frameworks and more.

Presently, GBS Iskandar has facilitated nine companies setting up outsourcing centres and back office operations. They are Frost & Sullivan, Courts Asia, Vistra, Imagineering Institute, Nityo Infotech, Odinsoft, Brandt International, VTC, and DayThree. The latter three are OM member companies.

GBS Iskandar is poised to strengthen Malaysia’s competitiveness and capture a larger share of the growing GBS market, expected to reach RM6.5bn by 2020. To date, it created over 2,800 professional jobs within the GBS sector while successfully attracting over RM1.4bn in committed investments.

“As a permanent member of the GBS Iskandar steering committee, MIDA welcomes the presence of Outsourcing Malaysia to our common goal of building a world-class business environment in Malaysia,” said Dato’ Azman Mahmud, CEO, MIDA. “Being one of the drivers to position Malaysia as a global hub for high-value outsourcing, OM adds to our ongoing efforts to create high-value and knowledge-based jobs in Malaysia. Its presence here will further catalyse the growth of Iskandar Puteri as a thriving business services hub in the region.”

Azman added that shared services activities are one of MIDA’s focus areas. “Companies that incorporate shared services activities in Malaysia as part of their qualifying services are eligible for the Principal Hub (PH) scheme introduced in 2015. As at December 2016, MIDA approved a total of 19 PH companies, representing a diverse spectrum of industries, ranging from E&E, F&B, oil and gas, as well as consumer products.

“The migration of shared services functions has led to the creation of high-value job opportunities which, in the long run, will enhance the quality of Malaysia’s talent pool through exposure to international best practices and standards,” he said.

OM chairman, Cheah Kok Hoong, said with Iskandar Puteri’s strategic location as the World’s Best Nearshore to Singapore, its lower cost base, the availability of a highly skilled, multilingual talent pool and the government’s many incentives, GBS Iskandar is poised to grow. “It will become the ideal business services hub for multinational companies,” he said.

“We look forward to our continued collaboration with MIDA, OM and other partnering agencies as well as the Johor state government to attract more quality investments into Iskandar Puteri,” said Zulfiqar Zainuddin, managing director, i2M.


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