The Business Services NKEA taps the growth opportunity in specialised, high-value sectors that will help drive the country's transformation into a high-income nation by 2020. While still a small portion of the Malaysian economy at only 3.9 per cent of its GNI in 2012, the sector was nevertheless the country's second-fastest growing over the past decade, expanding at an average annual rate of 7.9 per cent.
This amounted to a GNI of RM36.4 billion in 2012, which is projected to grow to RM78.7 billion by 2020 through the implementation of six Entry Point Projects under this NKEA. These EPPs cover maintenance, repair and overhaul (MRO) services, shared services and outsourcing, data centres, green technology, pure-play engineering services, and shipbuilding and ship repair.
Malaysia has already established itself in some of these areas, such as in shared services and outsourcing of IT. The country is also recognised as one of the three leading hubs for aircraft MRO services in the Asia-Pacifc region.
This position was further strengthened by Airbus' establishment of its Customer Services Centre for specialised aerospace engineering services near the Kuala Lumpur International Airport in the 3Q 2013.
The country's data centres are also gaining increasing international recognition, boosting its ambition of becoming a data centre hub. Malaysia is currently ranked 16th, up three positions from 2012 in the Data Centre Risk Index by Cushman & Wakefeld.
The next 12 months will see exciting growth in Malaysia's data centre landscape as top global players look to expand their cloud offerings in this region.
The Business Services NKEA will build on the sector's past successes to capture a larger market share of these high-value and knowledge intensive areas, in turn creating demand for a skilled workforce.
In line with the ETP's key goal of stimulating private investment, this NKEA will continue to be private sector-driven. This NKEA will also be supported by ongoing efforts by the Government to strengthen the country's human capital base via the Human Capital Development Strategic Reform Initiative.