Greater KL Soars as a Global Services Powerhouse, Fueling Wider Economic Growth

Malaysia has made impressive strides in recent years, holding strong positions in the IMD World Competitiveness Ranking. Our recent slip is a time of reflection and a good pulse check, highlighting the intense competition among cities and countries. On a positive note, Malaysia and Greater Kuala Lumpur continue to draw significant foreign direct investments (FDI) underscoring our resilience and strength as a top investment destination.

In the first quarter of 2024, Malaysia secured RM83.7 billion in approved investments, marking a 13% increase from Q1 last year. Notably, RM47 billion, or 56.2%, of this, came from foreign investments reaffirming confidence. In my engagements with global business leaders, it's clear that rankings aren’t the sole factor in their business decision-making. In fact, they look at fundamentals such as cost competitiveness, talent availability, and a vibrant ecosystem that is crucial to their long-term and sustainable growth —all of which Malaysia?offers.

Last year alone, InvestKL secured a record-breaking RM8.7 billion in FDI and, in so doing, generated 8,329 high-skilled jobs, up from RM2.79 billion in FDI and 2,805 associated jobs created in 2022. But far from resting on our laurels, our team is striving to surpass these achievements by strategically targeting multinational corporations (MNCs) seeking to establish a robust foothold in Asia.

We are already witnessing successes in this space. Greater Kuala Lumpur (Greater KL) is proving to be an attractive and accessible location within Asia, with its multilingual and diverse talent pool, solid regulatory frameworks, ease of doing business, and commitment to sustainability. We are increasingly being recognised as a prime location for global service centres that empower MNCs to efficiently serve their customers across Asia in areas such as digital innovation and technology. As these MNCs establish their presence in Greater KL,?they bring not only significant investment but also invaluable expertise and cutting-edge technology,?catalysing a positive ripple effect across the Malaysian economy.

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A World-Class Community Fostering Local Talent Upskilling and Innovation

Malaysia continues to attract investments from world-renowned companies. Recently, Microsoft committed over RM10.5 billion over the next four years to support Malaysia’s digital transformation, marking the single largest in its 32-year history and a game changer for Malaysia’s FDI milestone.

Additionally, Google has committed RM9.4 billion for a data centre and cloud region in the country. At the same time, we are witnessing Amazon Web Services (AWS) and Tesla expanding their investments in Malaysia. These investments represent a key milestone in the government's vision to attract more digital investors to the country, helping to build a strong and secure digitally-enabled economy.?

InvestKL's success in attracting global giants such as Zimmer Biomet, a world leader in medical technology, and the London Stock Exchange Group (LSEG) exemplifies Greater KL's growing reputation as a world-class business hub.?

Zimmer Biomet's new APAC Global Business Services Centre in Greater KL is a prime example of how MNCs are not only enhancing their own innovation capabilities but also contributing to the local ecosystem.?This state-of-the-art centre,?established for Malaysia's solid reputation,?infrastructure,?and robust talent pool,?serves as a launchpad for enhanced innovation in the APAC region.?As Zimmer Biomet's presence in Greater KL expands,?so does the demand for local talent with specialised skills, fueling a cycle of growth and development.?The company's commitment to hiring and developing local talent creates high-value career opportunities and contributes to the upskilling of the Malaysian workforce.

LSEG's flagship office in Greater KL underscores its confidence in the region's financial sector and commitment to nurturing local expertise.?Notably,?LSEG's collaboration with Bursa Malaysia on enhancing sustainability reporting standards?and its engagement with local university students demonstrate the far-reaching impact of MNC presence,?fostering knowledge transfer and raising industry standards.

Beyond Zimmer Biomet and LSEG,?other prominent MNCs with Global Service Hubs in Greater KL have actively partnered with local universities to provide hands-on learning opportunities for students.?For instance, FedEx hosted Universiti Tunku Abdul Rahman (UTAR) students at their regional office,?offering insights into world-class logistics operations.?Lenovo PCCW Solutions organised a boot camp for International Islamic University Malaysia students,?focusing on personal and professional development in the digital age.?These initiatives,?facilitated by the InvestKL Talent Programme (ITP),?are not just about aligning local talent with the needs of global companies,?but also about empowering the next generation of Malaysian professionals with the skills and knowledge to thrive in a globally competitive landscape.

Apart from developing a holistic talent pipeline, I am also proud to note that the ESG & Sustainability ConneXion Centre (ESGS CXC), which we set up in Greater KL, is making significant strides in driving sustainable business practices and fostering Environment, Social, and Governance (ESG) adoption. The ESGS CXC serves as a hub for facilitating policy advocacy, capability building and knowledge sharing among various stakeholders across the business ecosystem. Notably, international companies such as McDermott are leading the charge by pioneering low-carbon technologies to reduce embodied carbon across its energy projects’ life cycle, while Veolia Water Technologies contributes to Malaysia’s ESG goals by providing innovative water solutions through water reclamation and reuse.

In addition, the Greater KL Live Lab (GKL LL) continues to connect foreign MNCs with local SMEs, educational institutions, and research organisations to drive ESG and sustainability initiatives. We have seen international companies such as DHL using Greater KL as a testbed for maritime deliveries using drones, and Japan-based digital healthcare service provider Allm Inc. collaborating with local hospitals to conduct clinical trials. Other companies proudly participating in the Greater KL Live Lab program include Behn Meyer AgriCare, uPledge, Quantum, and Malaysia’s own Carsome, to name a few.

This collaborative environment accelerates the adoption of new technologies and practices, leading to increased productivity and competitiveness for Malaysian companies.

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A Bright Future for Global Services in Greater KL

InvestKL's efforts to attract leading global companies and foster a collaborative environment have solidified Greater KL's position as a thriving global services hub. This success translates to far-reaching economic benefits for Malaysia, including direct investment, high-value job creation,?and the development of a highly skilled workforce.

Moreover, the dynamic collaborations forged between foreign and local companies, supported by strong public and private sector partnerships, have created a vibrant ecosystem that benefits all stakeholders. The positive spillover effects from MNCs, such as technology transfer, knowledge sharing, and increased productivity, are key to driving Malaysia's overall economic growth and development.

A well-known proverb wisely states,?‘If you want to go fast,?go alone.?If you want to go far,?go together’. InvestKL embraces this philosophy,?recognising that collective progress is the key to long-term success.?We remain committed to nurturing these collaborative relationships,?ensuring Greater KL thrives as a premier destination for global services and contributing to Malaysia's economic prosperity.

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