Malaysian Businesses Look Forward To New GST System

A majority of local organisations (75%) prefer new tax system but voice worry over challenges in adoption and impact on company revenues;

Calls for more financial and training supports to smoothen implementation and adherence to new GST system 

Local ICT vendors play an important role to ‘cushion’ the complexity of GST-system adoption and compliance

Kuala Lumpur, 29 April 2014 – PIKOM, the National ICT Association of Malaysia and the ‘Voice of ICT Industry’, today unveils some significant findings from its recent nationwide ‘GST Impact on Businesses’ Survey – carried out with the main purpose of identifying the market’s sentiments and readiness for the country’s impending Goods and Services (GST) system to be enforced on 1st April 2015.

PIKOM’s Chairman, Cheah Kok Hoong shares that PIKOM’s GST survey conducted in March 2014, markedly revealed that a majority of local businesses (75%) perceived and accepted that the new GST system is a better form of indirect tax compared to the current Sales and Service Tax (SST) model.

“PIKOM’s GST Survey gathered that today’s local organisations already have some basic knowledge about the impending GST system such include the zero-rated supply, exported goods exemption, non-compliance regulation, penalties and more,” says Cheah.

“This is likely mainly attributed to the effective advocacy and awareness programs that have been driven by the government together with select members of the private sector.”

However, PIKOM’s GST Survey also reported that less than 50% (or half) of these local organisations admit that they are ready to adopt the new GST system from the perspectives of workforce, IT system and business processes.

Cheah also shares, “Most shockingly is that as of now, less than 25% (or a quarter) employers have sent their ICT employees to be properly trained to implement and leverage the new GST system.”

Organisations Seek for Supports as GST Posts Significant Impacts on Revenues

Cheah further shares that local businesses, especially Small and Medium Enterprises (SMEs), have started feeling the pressure to expedite the GST system implementation process in order to meet the given deadline of April 1, 2015.

“At this stage, many organisations have found out themselves that they have only allocated a limited budget, and possessed inadequate resources and knowledge, to properly get themselves ready in facing the far-reaching operational and financial impact of a new tax system in their business,” he says -  adding that survey results have also further shown that more than 60% of local organisations acknowledged that GST system will significantly impact their revenues.

Some of the other key findings in PIKOM’s GST Survey are the following:

There is a clear market demand for more financial and training supports to implement GST  system 
The market’s other significant requirements include guidance and support, on the aspects of business process automation and technology, to embrace the GST system quickly and efficiently
Over 60% of local organisations have a GST project plan 
Over 70% of local of organisations indicated that their employees need (more) training to perform GST system implementation and manage the impact to the business operations

Cheah says, “The highlight point from this survey is that Malaysian organisations are looking for more alternatives for financial and training supports from local companies and government agencies to achieve a better success rate for their in-organisation GST system implementation projects.”  

“In addition, they are also actively turning to ICT vendors to seek consultation to optimise the existing organisational infrastructures to comply with the new GST system. On a positive note, PIKOM is clearly seeing that local ICT organisations are playing an important role to ‘cushion’ the impact of local businesses trying to deal with the complexity of GST-readying their systems, by leveraging their expertise and track record of GST implementation in other countries.”

Cheah ends that in PIKOM’s role, the association has planned a series of seminars and workshops to provide "a softer landing" for businesses and consumers.

“In line with PIKOM’s effort to advocate the GST system implementation, we are planning to offer businesses and consumer ICT consultations and solutions during the Digital Lifestyles Expo, which will be at KL Convention Centre and is scheduled from 8th to 10th August, 2014.”  

“Overall, despite the adoption challenges, organisations are still proactively putting efforts to keep the GST project moving as they are well aware of its importance and impacts to business on a long term basis.”

The PIKOM’s survey was conducted with over 1,000 local organisations nationwide, primarily the IT fraternity and other businesses across industries.

Opening of Nominations for the 15th MSC Malaysia APICTA Awards 2014

The 15th MSC Malaysia APICTA Awards 2014 organised by Multimedia Development Corporation (MDeC) and the National ICT Association of Malaysia (PIKOM) will open on 1st of April, 2014 for submission of nominations.

The nominations must be submitted online at www.mscmalaysia.my/apicta. The full list of categories of awards and additional information can be obtained from the same website.

The deadline for submissions is 30th June 2014.

MSC Malaysia Asia-Pacific ICT Alliance Awards (APICTA) is an international Awards Programme, aimed at providing a platform for individuals, students, SMEs, innovators and entrepreneurs in the ICT industry, to showcase their products and services and grab the opportunity to compete at the international level.

(Pictorial) PIKOM PC Fair @ KLCC. 06-12-2013

And the rest I don't have the mood to take pictures...

I think PIKOM or MCMC should explain why Wi-Fi Crackers are on sale openly at the Fair?

Outsourcing Industry to Double in Growth by 2017

Outsourcing Malaysia launches extensive industry report on Outsourcing industry in Malaysia

KUALA LUMPUR, 22 October 2013 – Outsourcing Malaysia (OM), an initiative under PIKOM, today shared that the outsourcing industry in Malaysia is set to double in growth by 2017 with a Compound Annual Growth Rate (CAGR) of 15 per cent from its current 2012 revenue of USD1.7 billion.

OM announced its second industry report titled ‘Malaysia’s Global Services Outlook’ in conjunction with the four day international Asia-Pacific Outsourcing Summit (APOS) in Iskandar, Johor. The research findings by leading B2B market researcher Valuenotes, was commissioned by OM to provide the SWOT (Strength, Weakness, Opportunity, Threat) insights of the industry in Malaysia.

PIKOM Chairman Woon Tai Hai, IAOP Chairman Michael Corbett and David Wong the Chairman of Outsourcing Malaysia, unveil the new research findings on the outsourcing industry for 2013 at the Asia-Pacific Outsourcing Summit (APOS) in Iskandar, Johor.

David Wong, Chairman of Outsourcing Malaysia (OM) shares that one of the major insights is the key advantage that Malaysia has, being ranked 12th worldwide by the World Bank for the ‘Ease of Doing Business’ category. This ranking is also the highest amongst all countries that are considered ‘outsourcing countries.’  “A simple illustration of this is that a potential investor can start doing business in Malaysia in a mere 6 days, while it takes an average of 36 days to do the same in other APAC countries,” he explains.

At the same time, Malaysia has the highest ‘infrastructure availability’ worldwide ranking at 32nd spot amongst all outsourcing countries compared to India ranked 84 – with connectivity, electricity supply and Internet penetration per population at the highest scores.  “With the Malaysian government’s continued initiatives to set up new business cities that fully equipped with infrastructure facilities such as transportation, electricity, water supplies and telecommunications such as here in Iskandar, it will further increase our appeal to investors who are looking at Asia to outsource their business processes,” says Wong.

Currently, over 200 industrial estates/ parks and 14 Free Industrial Zones (FIZs) have been developed throughout the country for businesses to kick-start their operations faster and more efficiently.

The strong and diverse language capabilities, strategic geographic location, stable business and economic environment as well as strong government and industry association(s) support and initiatives were also listed as the some of the other key factors that make Malaysia a viable outsourcing destination.

Move Up the Value Chain; Identified Verticals for Specialization Focus

The research findings also reveal the urgency for Malaysia to move away from playing the numbers game in outsourcing and from the entry-level outsourcing sector. Wong explains, “The largest Malaysian outsourcing company only manages to employ 5,0000 people as compared to over 100,000 employees in some of the larger firms in India and China. This illustrates the average size of outsourcing centers in Malaysia - which limits our capability in taking on volume-driven type of outsourcing project.”

“This is why we have to focus on providing more highly specialised end-to-end services in niche markets such as a) Business Financial Services Industry (BFSI) b) Healthcare c) Logistics and d) Oil and Gas in order to remain globally competitive.”

BFSI currently accounts for 30 percent of the market share and is expected to escalate further especially in Islamic banking with the potential to offer off-shoring services. The fastest growth will be seen in the Healthcare (CAGR 10%), Government (CAGR 9%) and Travel and Logistics (CAGR 8%) sector. Infrastructure management and payment processing are some of the services that are being predominantly outsourced by business in the sector.

Some of the most popular ITO projects are Generic Office Enrolment (GOE), Electronic Procurement (eP) and Human Resource Management Information System (HRMIS). Oil & Gas is another critical sector where there is high potential for growth. Malaysia’s strategic location, good port quality and road infrastructure on the other hand is contributing to the growth of the Logistics sector.

“On our part, we will continue to create avenues for discussion and networking through events such as APOS to continue driving the industry’s overall developments with an emphasis to push for niche market growth as well as driving more interest in outsourcing as a viable career amongst the local workforce,” ends Wong.

Themed ‘Creating Sustained Value for Regional Integration,” APOS 2013 is the first of five regional summits that will be organised by Outsourcing Malaysia together with the International Association of Outsourcing Professionals (IAOP) across Asia Pacific in the next five years.

Iskandar Malaysia, the next destination of choice for outsourcing

KUALA LUMPUR, 20 August 2013 – Outsourcing Malaysia (OM), an initiative under PIKOM, today announced that i2M Ventures Sdn Bhd (“i2M”), which focuses on strategic investment promotion initiatives for the Business Services sector in Iskandar Malaysia, will be the host sponsor for the Asia-Pacific Outsourcing Summit (APOS) which will be held at Traders Hotel, Iskandar Malaysia, between 21–24 October 2013.

One of the highlights of the summit will be the announcement of several key projects in Iskandar Malaysia that are set to escalate the outsourcing industry.

OM Chairman David Wong shares that development and enhancement of the outsourcing industry’s value and positioning in the global marketplace is one of the key Entry Point Projects (EPP) identified by the government. In turn the local industry has an immense opportunity to serve growing regional and complex global markets through provisioning high-value services / solutions. With both these pressures in place, Iskandar Malaysia has great potential to thrive in this industry.

David Wong, the Chairman of Outsourcing Malaysia together with the Asia-Pacific Outsourcing Summit (APOS) 2013 sponsors. (From the left) 
·         Billy Lee the Chairman of the Malaysian Data Center Alliance – Regional Sponsors of APOS 2013 
·         Ganesh Bangah the CEO of MSC Cyberport Sdn. Bhd – Gold Sponsors of APOS 2013
David Wong, the Chairman of Outsourcing Malaysia 
Zulfiqar Zainuddin from i2M Ventures Sdn Bhd a wholly owned subsidiary of Khazanah Nasional Berhad – Host Sponsors of APOS 2013
·         Woon Tai Hai the Executive Director-Management Consulting, Advisory of KPMG - Gold Sponsors of APOS 2013

“Malaysia has experienced significant growth in recent years despite the global economic downturn especially in Europe, since companies worldwide are focusing on opportunities to bring down costs by being effective, efficient and innovative”, says Wong. “The upcoming Asia Pacific Outsourcing Summit that is slated to be a major event would focus on these stories and the near-term opportunities available in fast-growing markets. APOS concurrently establishes an undeniably cohesive link between outsourcing and economic development”, he adds.

“OM is excited to have i2M on board as the host sponsor for APOS. Indeed, this shows the government’s serious take on efforts to drive Malaysia’s outsourcing industry as a strong economic growth for the country, and as a strategic driver for value creation,” says Wong.

Zulfiqar Zainuddin, the Managing Director of i2M, a wholly-owned Khazanah Nasional Berhad (Khazanah) subsidiary, says, “The APOS summit will be the perfect platform to share the key upcoming projects we have been working on for Iskandar Malaysia.  This event will place Iskandar Malaysia in the limelight as a major potential hub for the region’s outsourcing market.” This is the first time the summit is hosted in Iskandar Malaysia.

“Our team has been tasked with a heavy yet crucial role in the next development phase of Iskandar Malaysia. Now that we see the infrastructure developments gradually picking up its natural pace, the commercial development needs to follow suit. The relevance of Iskandar to Malaysians can only be felt through economic opportunities and the development of employment in industries such as the outsourcing sector. The next 18 months will be crucial as we try to match the demands of industry with the infra and commercial developments,” adds Zulfiqar.

In 2012, Frost & Sullivan, a US based growth consulting company opened their Global Innovation Centre in Iskandar Malaysia. By the end of 2019, the company aims to create 830 new jobs.

“Frost & Sullivan is just the beginning for outsourcing in Iskandar Malaysia. We are in the midst of finalising a few deals. Winning the projects is just half of the battle. We need to ensure the projects are delivered successfully as promised,” says Zulfiqar.

Besides i2M, companies such as MSC Cyberport Sdn. Bhd., Accenture, KPMG, VADS and Malaysian Data Center Alliance are some of the other sponsors for the APOS Summit.

Wong says that although Malaysia has strong domain knowledge in sectors such as Financial Services, Oil and Gas as well as logistics, the outsourcing industry has not reached its full potential.

“While the industry has been posting decent growth rates, there is a bigger potential for growth and we hope the hosting of a regional summit such as APOS will give the industry the much needed boost and exposure,” adds Wong.

Outsourcing Malaysia Excellence Awards 2013
Meanwhile, the much awaited annual Outsourcing Malaysia Excellence Awards 2013 winners will be announced on the second day of the APOS summit.

Wong says, “The awards are one of the many efforts done by OM to encourage and boost the outsourcing industry in Malaysia. The awards recognises the best practices of Malaysian outsourcing companies who continue to challenge themselves and better their services as well as the industry.”

This year OM has introduced a new award entitled “Outsourcing Leader of the Year” to recognise individuals that have played a significant role in contributing towards the growth of the outsourcing industry in Malaysia.

The APOS Summit at Iskandar is expected to attract over 400 delegates, with 30 percent of the delegates from around the world. The summit is being organised in partnership with the International Association of Outsourcing Professionals (IAOP) and is the first of a five year partnership between OM and IAOP. There will be plenary sessions and education tracks focused on trends, disruptions and predictions, technology innovations and more. The conference will be held at the Traders Hotel,  Nusajaya, Iskandar Malaysia, Malaysia.

For more information, contact 603 7955 2922  

Iskandar to host Global APOS Summit for the first time

Outsourcing Malaysia partners with IAOP to bring global APOS Summit to Asia Pacific region over the next five years

KUALA LUMPUR, 17 July 2013 – Outsourcing Malaysia (OM), an initiative under PIKOM, today announced that they will be hosting the international Asia-Pacific Outsourcing Summit (APOS) together with the International Association of Outsourcing Professionals (IAOP). This will be the first ever international outsourcing conference to be held in Iskandar Malaysia, between 21–24 October 2013.

The APOS Summit in Iskandar will be the kick-start of a five year partnership between OM and IAOP - whereby OM will be a key regional partner in bringing the global APOS summits throughout Asia Pacific.

David Wong, Chairman of Outsourcing Malaysia (OM) said, “Outsourcing Malaysia is excited to be IAOP’s partner in joint effort to escalate the growth of the outsourcing industry.”

The APOS Summit theme at Iskandar is ‘Creating sustained value for regional integration’, and we truly look forward to bringing the outsourcing industry together in a synergistic platform of sharing and brainstorming to further develop the region’s potential as a teeming outsourcing hub.”

CEO of IAOP, Debi Hamill says, “This summit is a global initiative that brings the world’s top outsourcing practitioners and business leaders together in one venue. Our partnership with OM is a first for us here in ASEAN and holds a significant importance to our continuous endeavour to build the region’s outsourcing industry.”

“IAOP’s initiatives such as ‘Outsourcing’s Global Value’ will help delegates understand how to better increase efficiency, yield significant cost savings and drive growth, while remaining informed on the economic and social impact.

Asia Pacific is emerging as a lucrative market for outsourcing, both globally and domestically, so staying informed has never been so important,” says Hamill.

Wong adds, “As ASEAN countries go borderless in 2015, trade in the region is set to increase and this is an opportunity for the outsourcing industry to accelerate economic growth, social progress and cultural development through possible joint ventures, partnerships or merger & acquisitions.”

The APOS Summit at Iskandar is expected to attract over 400 delegates, with 30 percent of the delegates from around the world.  There will be plenary sessions and education tracks focused on trends, disruptions and predictions, technology innovations and more. The conference will be held at the Traders Hotel, Iskandar, Nusajaya, Malaysia.

MSC MALAYSIA APICTA AWARDS 2013 OPENS SUBMISSION OF NOMINATIONS

The 14th MSC Malaysia Asia Pacific Information & Communications Technology Alliance (APICTA) Awards 2013, organised by Multimedia Development Corporation (MDeC) and the National ICT Association of Malaysia (PIKOM) is now open for submission of nominations.

The nominations must be submitted online at www.mscmalaysia.my/apicta. The full list of award categories and additional information can be obtained from the same website. The deadline for submissions is 15th June 2013.

MSC Malaysia Asia-Pacific ICT Alliance Awards (APICTA) is an international Awards Programme, aimed at providing a platform for innovators and entrepreneurs in the ICT sectors in the region, to benchmark their products and to network with peers regionally.

P1 CEO Awarded ICT Personality of the Year in 2012 PIKOM Leadership Awards

Kuala Lumpur, (9 Nov 2012) – CEO of South-East Asia’s 4G broadband pioneer Packet One Networks Sdn. Bhd. (P1), Michael Lai was recently named the ICT Personality of the Year at the 2012 PIKOM Leadership Awards.

The PIKOM Leadership Awards is an annual event that recognises achievements of individuals in the ICT industry with the following categories – ICT Personality of the Year, ICT Organisation of the Year, Member Excellence Awards, and CIO Excellence Awards. Individuals conferred for this award has to demonstrate exemplary growth and performance in the ICT industry. They must also have a history of serving the industry and show prominent contribution to the ICT industry in the country.

(Centre) Michael Lai, CEO of P1 and the P1 team.

“I share this award with my team members in P1, as well as our business partners who believed in our “Broadband for All” mission. This award is the result of a strong team believing in the same dream, works hard and never gives up. My heartfelt appreciation to each and every one of our team members who has walked alongside with P1 in the last four years,” said Lai.

Michael has been contributing to the ICT industry in Malaysia for the last 20 years. Among some of his key milestones include major involvement during the golden days of Internet. In addition, he was among the pioneers leading the launch of 3G services and later pushed the adoption of fixed broadband in Malaysia. In 2008, Lai led P1 and launched the first 4G provider in Malaysia and South East Asia. With his in-depth knowledge in the industry, Michael is also the first Malaysian to be appointed as the WiMAX Forum Board Member and a Member of the 4G Global TD-LTE Initiative Steering Committee, representing the South East Asia region.

VADS CROWNED BEST OF THE BEST BPO OUTSOURCER OF THE YEAR AT THE CCAM AWARDS 2012

VADS BPO bags 16 awards in two nights

VADS Berhad (VADS), the Information Communication Technology (ICT)/Business Process Outsourcing (BPO) arm of Telekom Malaysia Berhad (TM) recorded an outstanding achievement when it won sixteen (16) awards in the span of two nights recently.

The highest honour went to VADS as it took home The Best of the Best BPO Outsourcer of the Year Award during the 13th Annual Customer Relationship Management and Contact Centre Association (CCAM) Awards Night which was officiated by wife of the Prime Minister, Datin Paduka Seri Rosmah Mansor.

 Celebrating the Achievement!
Mohd Fauzil Wahab, General Manager, BPO Operations, VADS Bhd (right) receiving the Best of the Best BPO Outsourcer of the Year award while Senator Datuk Maznah Mazlan, Deputy Minister of Human Resources (centre) and Mohd Irwan Rizal, President of Customer Relationship Management & Contact Centre Association of Malaysia (CCAM) (left) look on at the recent 13th Annual CCAM Awards Night.

VADS also bagged 13 other awards that night including three (3) Gold Awards for Best Outsource Inbound Contact Centre Above 100 seats, Best Outsource Outbound Contact Centre Above 100 seats and The Most Creative Contact Centre for its Step Up Programme, the Company’s initiative towards improving the skills of the professionals, including employing People with Disabilities (PwD) as a means of giving back to the society.

VADS also received seven (7) Silver Awards for Best Outsource Inbound Contact Center Above 100 seats, Best Process Excellence (Open), Best Video Contact Centre, Best Outsource Inbound Contact Center Under 100 seats, Social Media Programme Contact Centre, Best Contact Centre Team Leader Above 100 seats (Aznal Ariff Zakaria) and Best Contact Centre Supporting Professional (Izeti Zulkifli).

VADS looking VIBRANT!
Izeti Zulkifli, Manager, Quality Assurance, VADS Bhd (second from left) together with Mohd Fauzil Wahab, General Manager, BPO Operations, VADS Bhd (third from left) receiving the Best Process Excellence award at the recent 2011 CCAM Awards ceremony. On the far left is Mohd Irwan Rizal, President of Customer Relationship Management & Contact Centre Association of Malaysia (CCAM).


In addition, VADS took home three (3) Bronze Awards for Best Outsource Outbound Contact Center Under 100 seats, Best Contact Centre Team Leader Above 100 seats (Norlizah Ali) and Best Contact Centre Team Leader Under 100 seats (Mashiur Rahman).

The CCAM Awards is organised by the Customer Relationship Management and Contact Centre Association of Malaysia which has been at the forefront in developing the local CRM and contact centre industry in Malaysia. It is a strategic think tank, an educational platform and a progressive establishment geared towards constantly improving the calibre of industry professionals.

Derrick Yap Weng Sum, Operations Director, TM Sales Centre, receiving the award for Best Outsource Outbound Contact Centre Above 100 seats while Senator Datuk Maznah Mazlan, Deputy Minister of Human Resources (middle) and Mohd Irwan Rizal, President of Customer Relationship Management & Contact Centre Association of Malaysia (CCAM) look on (left) at the recent 2011 CCAM Awards ceremony.

Meanwhile, at the recent Outsourcing Malaysia Excellence Awards which was held in conjunction with the Smart Sourcing Summit, VADS took home the highest honour of the night - Outsourcing Service Provider of the Year Award as well as the BPO Engagement of the Year Award.  The awards were presented by Datuk Seri Panglima Dr Maximus Johnity Ongkili, Minister of Science, Technology and Innovation. Accepting the awards on behalf of the Company was VADS’ Chief Executive Officer, Ahmad Azhar Yahya.

Ahmad Azhar Yahya, in congratulating his team for their great effort, said: “These awards cement our leadership role in the outsourcing sector in Malaysia. It’s a great achievement and reinforces our company’s strength as one of the best outsourcers in the country. Winning these awards which are recognised industry-wide and used globally to showcase best practices and value creation in the sourcing space has not only enhanced our position as Malaysia’s ICT and BPO Powerhouse but also Malaysia’s position in the global sourcing marketplace. I would like to congratulate my team for their tireless efforts and encourage them to continue to do better and serve our customers with utmost dedication.”

Congratulating the Champions: Ahmad Azhar Yahya, CEO of VADS (3rd from left) receiving the Outsourcing Service Provider of the Year Award from Datuk Seri Panglima Dr Maximus Johnity Ongkili, Minister of Science, Technology and Innovation (2nd from left) at the recent Outsourcing Malaysia Excellence Awards while flanked by (from left to right) Woon Tai Hai, Chairman of PIKOM, David Wong, Chairman of Outsourcing Malaysia and Michael Warren, Director Global Sourcing Cluster, MDeC.

“I would also like to thank our customers who have grown together with us. As we all know, customers are key pillars to any businesses and it is our priority to ensure that all their business process & IT outsourcing needs are taken care of for better customer service experience,” he added.

The OM Excellence Awards is organised by Outsourcing Malaysia, a chapter of PIKOM in partnership of the International Association of Outsourcing Professionals — the global standard-setting organisation and advocate for the outsourcing profession. The awards recognise and reward excellence in outsourcing. These awards are aimed at furthering the cause of outsourcing as a key strategic driver for value creation as Malaysia endeavors to become a world-class location for outsourcing services. The OM Excellence awards were assessed through deployment of a comprehensive, market-aligned “Sourcing Awards Assessment Set [SAAS]2”.

VADS operates over 4,000 seats in 13 delivery sites in two countries (11 in Malaysia and two in Indonesia). VADS manages over 72 million customer interactions per year and growing, on behalf of clients across various industries.