ACCORDING to the Global Business Services Malaysia Strategy Report 2022-2027, the GBS industry in Malaysia is expected to grow at a five-year compound annual growth rate (CAGR) of 6.2% to US$6.7 billion by 2025.
This means Penang sits in a pole position of deepening its penetration in the digital GBS and emerging tech sectors like cloud computing, Internet of Things (IoT), data centre, cybersecurity, and advanced robotics.
Jointly established through concerted efforts by various stakeholders, the GBS Malaysia Strategy Report 2022-2027 is a report that focuses on the strategic visions of the GBS industry for the next five years.
It is spearheaded by Digital Global Business Services Council Malaysia (GBS Malaysia), National Tech Association of Malaysia (Pikom) and Malaysia Digital Economy Corporation (MDEC), in collaboration with various state agencies, including InvestPenang and other strategic partners.
The report was launched in Kuala Lumpur earlier this month, and today (July 29), state Entrepreneurial Development, Trade and Industry Committee chairman Datuk Abdul Halim Hussain launched it here in Bayan Lepas, Penang.
Abdul Halim, in his speech, said that the report would play a key role in engaging and updating business professionals and industry stakeholders on the GBS industry in Penang.
“Housing the second highest number of Malaysia Digital status companies, Penang plays a prominent role in the country’s GBS landscape.
“Harnessing the thriving GBS industry, Penang will continue to anchor its position as the preferred location for high-value activities and knowledge-driven work.
“Also, due to our strong manufacturing landscape, Penang is clearly in a position of strength to garner more strategic investments into the state.
“2022 is a year of celebration as Penang steps into its 50th anniversary of industrialisation.
“Holding onto the tagline of ’50 Years of Excellence and Beyond’, the state strives to uphold its conducive ecosystem that is capable of stimulating the advancement of strategic industries for the next 50 years and beyond.
“Penang topped and accounted for 41% of the country’s foreign direct investment (FDI) in 2021; with an all-time high of total approved manufacturing investment of RM76.2 billion.
“Meanwhile, our exports climbed 16% year-on-year, reaching its all-time high of RM364 billion, cementing Penang’s position as the nation’s highest contributor in exports,” Abdul Halim said during his speech before launching the GBS Malaysia Strategy Report 2022-2027 at the Spices by Yin’s café in Bayan Lepas today.
Also present was Chief Minister Chow Kon Yeow’s special investment adviser Datuk Seri Lee Kah Choon, who assured that InvestPenang would continue to collaborate with relevant stakeholders to further strengthen the digital economy and GBS ecosystem in Penang.
“Penang will keep abreast of emerging trends and deepen our penetration into high value-added activities for sustained growth.
“Specifically, we are seeing digitalisation and innovation as key drivers towards a high-income economy,” Lee added.
Earlier, various stakeholders and business professionals were treated to a power breakfast at the café.
Among others present during the ceremony were InvestPenang chief executive officer Datuk Loo Lee Lian, MDEC digital investment division head Raymond Siva, GBS Malaysia chairperson Anthony Raja Devadoss and GBS report chairperson Raymond Devadass.
Story and pix by Kevin Vimal