Business Services

In targeting the development of selected specialised service sectors in the Malaysian economy, the Business Services NKEA makes an essential contribution to the country’s quest for high-income nation status by 2020. These sectors are aviation maintenance, repair and overhaul (MRO) services, outsourcing, data centres, green technology, engineering services and shipbuilding and ship repair.

Under the outsourcing sector, global consulting firm Frost & Sullivan has set up its Global Innovation Centre for Excellence in Iskandar Malaysia, while other foreign firms, namely AIG, Chartis and AIA, have also expanded their shared services centres here. These developments are expected to help the outsourcing segment surpass its targets for export revenue by 117 per cent and jobs created by 113 per cent. The Government has also played its part in awarding outsourcing contracts for the Government Unified Communications and Government Data Centre-2 projects to boost the outsourcing sector.

This NKEA has also succeeded in nurturing home-grown pure-play engineering services companies. Strand Aerospace Malaysia (SAM) and DreamEdge Sdn Bhd (DESB) have both expanded their businesses at home and abroad, achieving consistent gains in revenue and increasing number of jobs in a space of two years.

SAM has gone on to establish a strategic alliance with AIRBUS and is now part of the latter’s broader regional strategy. This has also resulted in a potential acquisition of SAM from the likes of ALTRAN and ATKINS, who are world renowned engineering entities. DESB was able to diversify its engineering capability to suit the maritime sector, orthodontics and electric vehicles, as it continues to make strides in design engineering work with NISSAN Japan establish its brand in other Asian markets.

Despite these successes, human capital, a lack of scale and scope of local outsourcing companies, as well as expensive pricing and untested business viability of the green technology industry remains a prevalent issue within this NKEA. Nonetheless, existing hindrances will be continually addressed to support the necessary initiatives required to enhance Malaysia’s fields of specialisation in the face of everincreasing competition in the global economy.