In view of the upcoming Budget 2017, Outsourcing Malaysia (OM) is proposing a number of suggestions to further strengthen Malaysia’s Global Business Services (GBS) and boost local talent and supporting local GBS companies.
Based on OM’s GBS Business Services Outlook Report, Malaysia’s GBS Sector is poised to record growth of 10% to 15% for the next five years.
“GBS is a new driver of business and investments for Malaysia. Yet, we face an acute talent shortage, which will impact our potential to be a global player. As such, OM urges the government to consider the following under its budgetary plans for the coming year,” says Cheah Kok Hoong, chairman of OM.
- Funds for Talent Development Initiatives with Local Universities
In line with the 11th Malaysia Plan, OM recommends that funds be allocated for joint up-skilling programmes involving collaboration by academia, industry and the government to develop industry ready talents for the GBS industry. In addition, OM also suggests the creation of an industry oriented global GBS institute with a government investment of RM50 million.
- More Financial Support for Malaysian GBS Companies
Specific loan or equity schemes should be allocated for the development of local GBS companies as working capital or for mergers and acquisitions. Creating a single point of funding and facilitation for the expansion of local firm should be considered, with an expansion fund of USD100 mn.
- Outsourcing Government Functions to Local Private Sector Firms
With government bodies having already outsourced their ICT, Human Resources, customer contact functions, etc. to private local sector business and shared service providers, it is hopes that the outsourced functions remain in Malaysia and that more local GBS companies will be given opportunities to provide these services.