Iskandar Malaysia as a true nearshore location: i2M partners with Outsourcing Malaysia to develop Business Services activities

8th October 2014, Cyberjaya, Selangor – i2M Ventures Sdn Bhd (“i2M) and Outsourcing Malaysia will partner to promote and develop the Business Services sector in Iskandar Malaysia. The two parties announced their collaboration at the Smart Sourcing Summit, here in Cyberjaya, today.

Established in 2013, i2M, focuses on the development of strategic investment and promotion initiatives for the Business Services sector in Nusajaya, Iskandar Malaysia. To date, the team has successfully secured several high impact projects which will be creating over 2,000 jobs over the next 5 years, in the areas of research & consulting, software development, Business Process Outsourcing (“BPO”) and Information Technology Outsourcing “ITO”). The projects comprise businesses from a good mix of multinationals and local companies.

Managing Director of i2M, Zulfiqar Zainuddin said, “Our involvement with Outsourcing Malaysia was very much motivated by our agenda to develop Iskandar Malaysia as the next outsourcing hub for the country, especially for the southern region. We want to ensure that our objective is aligned with the national strategy in developing the Business Services sector. Outsourcing Malaysia and Multimedia Development Corporation (“MDeC”) are two key bodies responsible for the outsourcing landscape in the country and we want to be associated with these organisations”.

Iskandar Malaysia has been attracting interests from across the border since Singapore’s tightening of the employment policies for foreign workers in the services sector. Singapore is also facing constraints such as soaring rents, wage pressures and an ageing demographic, making a strong case for further greater cooperation between Iskandar Malaysia and Singapore.

“We have been talking to many companies in Singapore, multinationals and SMEs, who are exploring outside of Singapore, as a result of these new regulations. Companies are finding it hard to sustain, let alone expand in Singapore due to the rising costs. Iskandar Malaysia provides a suitable nearshore option for these companies. We feel that our local companies can easily adapt this model”, Zulfiqar added.

Outsourcing Malaysia Chairman, David Wong, welcomes the partnership, citing that it will further develop the outsourcing industry in the country.

“Outsourcing Malaysia’s mandate is to help our local companies to expand their business locally and regionally. Singapore is a low hanging fruit that we should tap on, and our local companies should start leveraging on the proximity of Iskandar Malaysia to Singapore. Having the support of a dedicated team in i2M will definitely benefit the companies” he said.

Singapore IT services market alone is valued at SGD3.18bn in 2013, and is projected to increase to SGD4.01bn in 2017.

As an Institutional Partner to Outsourcing Malaysia, i2M will be involved in various programmes offered under the association, whilst having the flexibility to develop programmes specific to Iskandar Malaysia. Outsourcing Malaysia organises promotional and development programmes, benefitting over 130 members, consisting of local companies and multinationals.