COMPANIES MUST QUICKLY PIVOT TO REMAIN COMPETITIVE AND RELEVANT IN TODAY’S EVOLVING BUSINESS LANDSCAPE

PETALING JAYA, Sept 12, 2024 – Minister of Digital, Gobind Singh Deo urged Malaysian businesses to pivot and adopt the latest technologies to stay competitive in today’s rapidly-evolving business landscape.

Speaking at the AGOS Global Business Services (GBS) Summit 2024 this morning, Gobind said organisations cannot afford to be complacent, and must constantly seek innovative solutions to drive growth.

“The GBS industry has also transformed dramatically, and thrived not only by optimising their operations but leveraging their expertise and resources to drive innovation,” Gobind said.

“In the past, most GBS centres in Malaysia provided much more basic services and in the 1990s and 2000s, many were focused on customer services such as call centre operations. Today, the situation is very different, with many providing more complex and specialised services, due to the need to stay relevant and competitive, as well as increasing demand from multinational companies.”

He added that artificial intelligence (AI) has had a profound impact on common GBS functions such as finance and accounting, procurement processes, supply chain management, and human resources.

“With predictive analytics, GBS companies can offer their clients more value and reduce costs by helping them to make much more informed decisions, manage costs, optimise inventory, automate repetitive tasks, and so on.

AI and machine learning can also assist in detecting real-time cyber threats, thus mitigating risks, and safeguarding an organisation’s digital assets.”

“Business-friendly policies are key to help companies grow and expand in our country. The Malaysia Digital Economy Corporation, or MDEC, has the Malaysia Digital (MD) Programme, that provides fiscal incentives and tax exemptions to attract local and international companies, and to develop digital talent – with emphasis on AI, blockchain, and Web3 technologies. There are 684 active GBS companies with MD status to date,” said Gobind.

Gobind added he was confident that Malaysia’s digital economy would be able contribute more than the target of 25.5% to the national GDP by the end of next year.

According to the 12th Malaysia Plan, the GBS industry in Malaysia is expected to grow to USD 6.7 billion, with AI, cloud computing, and IoT among the top areas of focus. Digital adoption will further accelerate the growth of GBS companies, and as such, the industry must be given its due recognition and attention.

The one-day AGOS GBS Summit 2024 was attended by 250 participants comprising GBS leaders, Chief Financial Officers, representatives from multinational corporations and government-linked companies. Malaysia has been a top player in GBS for two decades. This has been acknowledged by global management consultancy, Kearney, in its biennial Global Services Location Index report since its inaugural edition in 2004.

“For Malaysia to sustain its competitive edge, GBS organisations must aggressively pursue digital and AI initiatives and upskill their talent. A thorough review of digital strategies, process automation opportunities, and the strategic application of the latest technologies is essential,” said Joon Teoh, AGOS GBS 2024 Summit organising chairperson.

“Additionally, sharing successful case studies and achievements will bolster Malaysia's appeal as a GBS hub and attract new investors,” she added.

-END-