Shared Services & OutsourcingA Malaysian PerspectiveA Malaysian Perspective

Shared Services & Outsourcing

Worldwide F&A Shared Worldwide F&A Shared Services & Outsourcing Services & Outsourcing

MarketMarket

Asia Pacific F&A Shared Asia Pacific F&A Shared Services & Outsourcing Services & Outsourcing

MarketMarket

(2010)(2010)

MarketMarket

(2010)(2010)

MarketMarket

(2010)(2010)

(2015)(2015) (2016)(2016)

(2010)(2010)

(2015)(2015) (2016)(2016)

( f t i d)( f t i d)

2Source: Offshore Outsourcing Service Trends, IDC Report, June 2012

(over forecast period)(over forecast period)

Shared Services & Outsourcing

M l i i t i F&A Sh d M l i i t i F&A Sh d Malaysia is strong in F&A Shared Malaysia is strong in F&A Shared Services & Outsourcing MarketServices & Outsourcing Market

(2011)(2011)

3° 8′ 0″ N, 101° 42′ 0″ EMALAYSIA

(2016)(2016)( 0 6)( 0 6)

( f t i d)( f t i d)

3Source: Offshore Outsourcing Service Trends, IDC Report, June 2012

(over forecast period)(over forecast period)

Malaysia Preferred destination for Shared Services & Outsourcing (SSO)Preferred destination for Shared Services & Outsourcing (SSO)

4

Global Recognition

When it comes to Business EfficiencyMalaysia is the world’s 10th most When it comes to Business Efficiency, Malaysia is 4th out of 58 economies 

beating out Australia (5) Brazil (24) China (28)

Malaysia is the world s 10th most competitive out of 58 countries

ahead of nations such as Brazil (38) China (18) beating out Australia (5), Brazil (24), China (28), Germany (25), India (17), Indonesia (34), Japan (23), The Netherlands (15), the Philippines (32), Russia (53), South Korea (27), Thailand (20), the UK (26) and the US 

(13)

ahead of nations such as Brazil (38), China (18), Germany (16), India (31), Indonesia (35), Japan (27), the Philippines (39), Russia (51), South Korea (23), 

Spain (36), Thailand (26), The Netherlands (12) and the UK (22) (13).

IMD Business SchoolUK (22). 

IMD Business School

Malaysia improved its ranking fromMalaysia improved its ranking from 23rd to 18th in the World Bank's Doing 

Business Report 2012, 

In cost‐effectiveness for outsourcing activities, Malaysia is rated 8.9

leaping over other countries with advanced economies. The report includes evaluation of costs, requirements and fees of starting business in each 

out of a possible 10, ,better than Brazil (4.9), China (7.5), the Philippines (8.7), Russia (6.2), Thailand (8.6), 

the US (2 4) and Vietnam (8 1)

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country's largest business city.World Bank Report

the US (2.4) and Vietnam (8.1).The Sourcing Line

Towards a Knowledge Driven EconomyMalaysia

Towards a Knowledge Driven Economy

INNOVATION DRIVENEngine of growth for the K-Economy

KNOWLEDGE DRIVENHigh ‐ Tech Manufacturing & Services

for the K Economy

Medium ‐ Tech Manufacturing & 

PRODUCTIVITY DRIVEN

Services

INVESTMENT DRIVEN

Assembly ‐ Type 

Primary Commodities

Manufacturing

LABOUR DRIVEN

** August 1996Primary Commodities

LABOUR DRIVEN

** August 1996MSC Malaysia was launched

1960 1970 1980 1990 1995 2000 2010 2020Source : National Economic Action Council, Malaysia

MSC MalaysiaShared Services & Outsourcing Landscape

MSC Malaysia SSO companies, over 160 are multinationals252Shared Services & Outsourcing Landscape

160 are multinationals

MSC Malaysia SSO companies contributed to the nation’s GDP

RM4,415.44MILLION co t buted to t e at o s G

RM 9,143.43 MSC Malaysia SSO companies generated these Revenues MILLION

RM 5,928.37MILLION

MSC Malaysia  SSO catalysed the shift towards Exports

g

GBP5.5BILLION

MSC Malaysia investments move towards hub‐status, with FDIs k l dtaking lead at 60%

58,448 MSC Malaysia SSO created High‐Value Jobs with averageHIGH‐VALUE

7

High Value Jobs with average net salary of RM5,000/mo

HIGH‐VALUEJOBS

Five Major Industries

8

Finance & Accounting Services

Banking ServicesBanking Services Capital & Global MarketsCapital & Global MarketsBanking ServicesBanking Services

Retail Financial Services Commercial Banking

Capital & Global MarketsCapital & Global Markets

Investment Banking Asset ManagementCommercial Banking 

Lending Cards

Asset Management Custody Fund Administration

Fi & A tiFi & A ti IIFinance & AccountingFinance & Accounting

General Ledger Account Payable / Receivable

InsuranceInsurance

Life and Pensions Property and Casualty Account Payable / Receivable

Invoicing Credit Checking Auditing

Property and Casualty

9

Taxation Reconciliation

MSC Malaysia

One of the pioneers of MSC Malaysia11 DHL Asia Pacific Shared Services Malaysia d d h MSC M l i i

11

22 Awarded the MSC Malaysia status in 2002

22 Currently employs 600 people, supporting 

was awarded the MSC Malaysia status in 2005

33Over 4000 employees servicing 26 countries 24/7 in four different language

22APAC & EMEA

33Finance, Accounting and Human Resources

44Trade Services, Securities Services, Credit Management, Payments, Global Banking and Markets

10

MSC Malaysia

BP Business Service Centre Malaysia was11RBC Dexia was awarded the MSC Malaysia

22 Employs close to 600 high skill workers

BP Business Service Centre Malaysia was established in 2009

1111

22

RBC Dexia was awarded the MSC Malaysia status in 2008.

Currently employs 455 people, servicing 22 p y g

33Account and financial business process services and tax support

Luxemburg, UK and Ireland.

33 Establish and operate a business process outsourcing centre (BPO) rendering services 

process services and tax supportin Transaction Management, Market Settlements, Corporate Action and Income Payments, Fund Accounting as well as IT Service Management Desk

11

Service Management Desk

MSC Malaysia

HP Global Campus & Next Generation11Shell Business Service Centre was awarded

22 Employs 4000 knowledge workers operating 

HP Global Campus & Next Generation Data Centre was established in 2010

1111

22

Shell Business Service Centre was awarded MSC Status in 2012

Finance, HR, Downstream Customer Service, 22 p y g p g

from 60 acre world‐class campus  in Cyberjaya

33Global services including professional 

Contracting & Procurement

33 Employs over 2000 FTEs with additional 1,500 man supporting via outsourcing 

33g p

Legal and HRpartners (AT&T, T‐Systems, HP)

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Why Malaysia?

Why do businesses choose Why do businesses choose Malaysia as F&A shared services Malaysia as F&A shared services & outsourcing operational centre& outsourcing operational centre

Security and PrivacySecurity and Privacy

& outsourcing operational centre& outsourcing operational centre

Compliance environmentCompliance environment Proximity to financial centresProximity to financial centres In the heart of AsiaIn the heart of Asia

3° 8′ 0″ N, 101° 42′ 0″ EMALAYSIA

In the heart of Asia In the heart of Asia WorldWorld‐‐class infrastructureclass infrastructure ICT environmentICT environment Highly skilled & multilingual talentsHighly skilled & multilingual talents Competitive costsCompetitive costs

13

Strong government support and Strong government support and attractive incentivesattractive incentives

Why Malaysia?

Challenges & OpportunitiesChallenges & OpportunitiesLet’s hear them fromLet’s hear them from

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THANK YOU michael.warren@mdec.com.myi i l ivisit us at : www. mscmalaysia.my