THE Multimedia Develop-ment Corp (MDeC) recently announced that MSC Malaysia’s performance last year was its best to date, showing strong growth and exceeding its set targets.
In 2011, MSC Malaysia revenue came in at RM31.7bil which was an increase of 16% from 2010, while exports grew to RM10.12bil which reflected a 9% rise from the previous year. MSC Malaysia saw a GDP contribution of RM9.6bil against a projected target of RM8.7bil. This was an increase of 25% over 2010.
In the area of job creation, 7,602 jobs were created against a target of 5,464 which represented a 7% growth. This brings the total number of jobs created in MSC Malaysia since 2007 to 119,138.
MDeC CEO Datuk Badlisham Ghazali said, “MSC Malaysia performed very well in 2011. Our revenue surpassed the RM30bil mark, which is the highest ever recorded. It also showed the best growth since the financial crisis of 2008. In the area of GDP contribution, MSC Malaysia contributed 1.12% to the nation’s GDP, which also reflected a growth from the previous year.”
In terms of breakdown, the Infotech cluster accounted for nearly half the revenue with a total of RM15.4bil while the Shared Services and Outsourcing cluster was responsible for RM9.1bil.
The Creative Multimedia cluster registered revenue of RM6.1bil while Institutes of Higher Learning and Incubators accounted for RM1.1bil.
Investments into MSC Malaysia also saw significant growth coming in at RM2.5bil, which represented a 69.2 % increase over 2010. In terms of distribution, 63% of this was Domestic Direct Investment while 37% was Foreign Direct Investment.
Commenting on the 2011 results, Badlisham attributed the strong showing to a combination of factors including MSC Malaysia’s attractiveness as a destination for Knowledge Process Outsourcing (KPO), the slew of new business opportunities created by advancing technology and the maturing of the MSC Malaysia companies themselves.
“Many of the MSC Malaysia companies are now coming into their own. With both domestic and international growth, we expect to see this trend continue moving forward. At the same time, many of the Multinational Companies (MNCs) recognise MSC Malaysia as a good location for high-value outsourcing services as reflected in both new investments as well as re-investments. Another critical factor has been the rate of absorption of ICT into the business and social landscape which has led to a host of new opportunities and markets,” he said.
Moving forward, MDeC is confident of continued growth and believes that there will be even more opportunities for MSC Malaysia companies as the various components of the Economic Transformation Programme roll out. At the same time, the MSC Malaysia is expected to stand out as a good investment destination because of its strong value proposition for MNCs.
“As we move even faster into a digital economy, the need for new solutions, technologies and business models is set to grow. This will certainly augur well for MSC Malaysia,” added Badlisham.