PETALING JAYA: Malaysia is fast emerging as a powerhouse in the global business services (GBS) sector, with the government pledging stronger collaboration with industry and academia to propel the nation towards its goal of becoming an AI Nation by 2030.
Digital Minister Gobind Singh Deo who officiated the GBS Asean Summit 2025 today, said Malaysia must “be AI-ready” by building an ecosystem that can swiftly adapt to evolving technologies.
“Technology is evolving very, very quickly. We have to look ahead and ensure our infrastructure is ready so that when that technology arrives, Malaysian companies can immediately adopt it and benefit from it,” he said.
“The ministry is fully committed to supporting and collaborating with the industry to achieve our vision to become an AI Nation by 2030. Our strategy rests on three pillars: world-class digital infrastructure, robust trust frameworks in data and cybersecurity, and future-ready talent,” he added.
Gobind highlighted that Malaysia’s GBS industry has reached an economic potential of US$6.7 billion (RM28 billion) this year, growing 6.2% annually, with 749 companies established over the last four years.
He stressed that such growth reflects how technology and AI are transforming service performance and economic value.
“This industry plays a vital role in ensuring that we transform digitally and deliver services more efficiently. The government will continue to work closely with the industry to overcome challenges and accelerate digital transformation,” he said.
Gobind reiterated that Malaysia cannot afford to delay digital adoption if it aims to capture Asean’s booming digital economy, which is projected to reach US$2 trillion by 2030.
“If we don’t take this effort seriously, we risk losing up to US$1 trillion in potential economic value over the next five years,” he warned.
“We have no time to lose. To meet our prime minister’s bold vision of AI Nation 2030 where the digital economy contributes 30% of GDP, we must move with urgency.”
The minister said the Madani government remains committed to listening to industry needs and facilitating growth through enabling policies, digital infrastructure, and public-private partnerships.
“This government is here to listen and support initiatives that make things better for the industry. If we can strengthen every sector and expand regionally, Malaysia can be positioned as an Asean economic powerhouse,” he said.
A key highlight of the summit was the memorandum of agreement exchange between the Digital Global Business Services Council Malaysia (GBS Malaysia) and Universiti Kebangsaan Malaysia (UKM). The partnership aims to build a robust talent pipeline by aligning university curricula with industry demands in areas such as artificial intelligence, data analytics and digital operations.
GBS Malaysia chairman Adjunct Practice Prof Alex Liew, who also chairs the National Technology Association of Malaysia, described the collaboration as “a definitive blueprint for future-proofing the industry’s human capital.”
“The GBS sector’s growth is directly tied to a future-ready talent pipeline. By aligning university curricula with high-value skills like AI and data analytics, Malaysia remains not just cost-effective but a talent-led digital powerhouse in Asean,” he said.
The event also marked the launch of the GBS Malaysia Mid-Term Report 2025, providing an in-depth review of the industry’s trajectory since the national GBS strategy was introduced in 2022.
The report highlighted a 66.8% increase in GBS companies since 2022, totaling 749 entities, and a 13.5-fold surge in investments from RM0.73 billion in 2021 to RM9.87 billion in 2024. The expansion has created over 36,000 high-value jobs and is projected to push GBS revenue to RM28.14 billion in 2025.
Malaysia currently ranks third globally in the Global Services Location Index and remains among the top three in Asean for digital competitiveness and innovation.
Raymond Davadass, research chair of GBS Malaysia, said the report underscores Malaysia’s evolution toward a more integrated, high-value digital economy.
“Our success will depend on how effectively we integrate technology, knowledge, and human capital into one cohesive, future-ready ecosystem,” he said.
“By bridging talent gaps and advancing collaboration, Malaysia is poised to become a global center of excellence for digital innovation, service delivery and sustainable growth.”
Dr Mandy Sim, associate professor at the University of Nottingham Malaysia and research lead for the report, said the findings represent a milestone in evidence-based policymaking. “The mid-term report is a testament to the powerful synergy between industry, academia, and government. It provides a robust framework to guide Malaysia’s ascent as a leading global GBS hub.”
