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February 28, 2024 -Wednesday

 
  GLOBAL BUSINESS SERVICES (GBS) INDUSTRY WILL BE ADVERSELY IMPACTED BY CURTAILING HIGHLY SKILLED EXPATRIATES INTO THE COUNTRY

Wednesday 20/03/2019



PETALING JAYA, March 20 (Bernama) -- Recent announcement by the Human Resources Minister YB. M Kulasegaran to abolish the Category II and Category III employment passes for expatriates has caused major concerns to the Global Business Services industry. This will impact the industry as the skill sets required by the GBS industry are multi facet, highly skills, highly specialized and niche, say Cheah Kok Hoong, Chairman of Outsourcing Malaysia (OM) a chapter of The National ICT Association of Malaysia (PIKOM). OM chapter represents the GBS community in driving, promoting and developing Malaysia’s business services industry. 
 
The GBS industry in Malaysia is estimated to be USD 6 billion at the CAGR of 10%15% per annum and employing more than 100,000 jobs.  A.T Kearney has also ranked Malaysia in third place consistently since 2007 behind India and China in the Global Services Location Index (GSLI) for offshoring destination of choice. Albeit being a smaller economy and population size to India and China, Malaysia has clear competitive advantages in terms of political stability, strategic locality, relatively lower cost of doing business, and multilingual and cultural environment. 
 
Whilst the OM Chapter understands the Government’s long-term intention of not relying heavily on foreign workers, we believe that an immediate sweeping policy of curtailing expatriates from the country in particular level II and III passes will impact the GBS industry adversely which in turn will affect the good business standing, impact on FDI and the economy of the country including the competitiveness of the nation in the long run. Ultimately it will also lead to a loss of jobs as foreign companies will move to destinations that are more conducive.

We strongly advocate that the Government to relook into this and consider a holistic and encompassing strategy in particular strategically identifying occupations of high level and high impact to the GBS industry.

About Outsourcing Malaysia

Outsourcing Malaysia (OM), an initiative of the outsourcing industry and a chapter of PIKOM – the country’s national ICT industry association, is envisioned to promote and develop Malaysia’s outsourcing services industry as a global hub for high-value outsourcing. Supported by its founding partner – the Malaysia Digital Economy Corporation (MDEC) - and spearheaded by a group of prominent industry leaders from the global services industry, OM focuses on enabling both buyers and providers to work together on addressing service needs within the aegis of global best practices and competencies.
 
About PIKOM

PIKOM, the NATIONAL ICT ASSOCIATION OF MALAYSIA is the association representing the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 1,000 companies involved in a whole spectrum of ICT products and services which commands about 80% of the total ICT trade in Malaysia. PIKOM works to improve the business climate in the interests of all its member companies and to promote industry growth in line with national aspirations. PIKOM's membership is open to all Malaysian companies who supply ICT products and services in the computing and telecommunications industries. However, non-ICT companies are also welcome to join the Association as associate members.

SOURCE : The National ICT Association of Malaysia (PIKOM)

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Justin J Anthony
Email : justin@pikom.org.my

--BERNAMA

 
 
 

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