Malaysia’s Global Business Services Sector Leverage AI To Provide Higher Value Services

By Wong Cheng Hau

KUALA LUMPUR, Aug 21 (Bernama) -- About 40 per cent of the 120,000 jobs in Malaysia’s global business services (GBS) sector will be using artificial intelligence (AI) to move towards higher-value services.

As companies and non-corporate entities expand beyond borders, the sector enables multinational corporations (MNCs) and other organisations to centralise business operations such as finance, human resources, information technology (IT) and procurement, said Malaysia-based consultancy AGOS Asia’s chief executive officer Joon Teoh.

Citing global surveys, its head of digital Chang Te Sheng said about 40 per cent of the roles involve highly standardised and repetitive tasks, including invoice processing, reconciliation, employee onboarding, and other corporate operational functions. Chang said these are already partially automated depending on organisational maturity levels.

“We are witnessing an evolution in the sector. Transactional roles are transitioning towards value-added roles, empowered by technology. We need to recognise this change and upskill resources,” he told Bernama recently in a virtual interview.

AGOS Asia helps MNCs and large Malaysian enterprises set up and expand their shared services footprint by redesigning processes to fit global needs using technology.

Chang highlighted two core skill sets – data operations (DataOps) and base-level programming, particularly in Python – which he defined as foundational.

“These ‘evergreen skills’ are the pillars to deal with the fast-changing technological landscape,” he said.

Other functional expertise includes areas in finance, human resources and procurement.

He said salaries in Malaysia’s GBS sector are closely tied to employees’ skill sets, with organisations often willing to pay a premium for specialised expertise such as data engineering; monthly salaries exceeding RM10,000 are common.

Teoh projects MNCs will continue establishing GBS operations leveraging AI and the latest evolving automation.

She said as AI evolves and is deployed globally, it cannot replace the need for the human touch when dealing with culturally sensitive issues in stakeholder management and engagement at the local level.

Teoh noted that Malaysia’s GBS sector serves Asia-Pacific markets characterised by a significant fragmentation in languages, local nuances, and regulations with different compliance levels.

“With over 20 years as a GBS hub, Malaysia offers instant access to a mature network of experienced players.

“The availability of digital talents and infrastructure positions Malaysia well for MNCs to pioneer digital and AI centres of excellence,” she said.

This is pivotal in Malaysia’s value proposition as a GBS hub offering higher-value services, enabled via the advancement of automation and AI.

This, in turn, enables knowledge and technology sharing, allowing local firms to learn from best practices. Viewed from a big picture perspective, this gives Malaysia mileage, Teoh said.

Malaysia has been ranked as the world's third most competitive global services location, behind India and China, according to the 2023 Global Services Location Index, she said.

“To maintain this global ranking position, Malaysia needs to move up rapidly within the Digital Quotient Index, which measures the competitiveness of a hub based on its digital maturity and readiness for digital-driven services,” she said.

In line with the 13th Malaysia Plan, Joon hopes Malaysian organisations will adopt best practices in functional know-how and operational technologies from MNC peers.

Comparing local public listed companies (PLCs) and government-linked companies (GLCs) with MNCs, she said local companies have successfully established world-class shared services centres, but MNCs have greater autonomy over their centralised shared services.

“Malaysia’s PLCs and GLCs should take the opportunity to accelerate their digital and AI adoption within their business processes and upskill talents to remain competitive,” Teoh said.

With GBS continuing to dominate boardroom discussions, AGOS’s 8th annual GBS Summit on Sept 11 at Nexus Bangsar South will bring together industry leaders and experts to discuss agentic AI applications, copilot-enabled analytics and strategies for talent acquisition and retention.

About 350 participants are expected. There will be opportunities for learning, networking and exploring innovative approaches to building and managing digital talent.

For more information, visit www.agossummit.com or email agosgbssummit@agosasia.com.

-- BERNAMA