Malaysia: The Rising Global Digital GBS Hub Powering Next-Generation Investments
The GBS ASEAN Summit 2025 today provided a decisive strategic vision for Malaysia’s Global Business Services (GBS) industry, marked by two significant announcements designed to strengthen the nation's digital economy and secure its position as a regional hub.
Held on 30 October, 2025 under the theme “GBS 5.0: Human-Centric, AI-Driven, Impact-Focused,” the Summit witnessed the official exchange of a Memorandum of Agreement (MOA) between GBS Malaysia and Universiti Kebangsaan Malaysia (UKM), and the launch of the GBS Malaysia Mid-Term Report 2025.
YB Gobind Singh Deo, Minister of Digital, stated in his officiating address, "The Global Business Services sector is a critical pillar of Malaysia's digital economy, driving vast digital investment and creating high-value employment opportunities across the nation. Our government is fully committed to providing the policy frameworks and support necessary to cement Malaysia’s leadership as the regional hub for the GBS industry."
The MOA between GBS Malaysia and UKM is a crucial step to future-proof the industry, creating a national talent pipeline to meet the rapid demand for high-value skills. This partnership establishes a direct bridge between GBS companies and undergraduates, ensuring that university curricula are aligned with industry needs in areas like Artificial Intelligence, data analytics, and digital operations.
Adjunct Practice Prof. Alex Liew, Chairman of PIKOM commented, "This strategic MOA with UKM is the definitive blueprint for future-proofing our industry's human capital. The GBS sector's growth is directly tied to a future-ready talent pipeline, and by aligning university curricula with high-value demands like AI and data analytics, we are ensuring Malaysia remains not just a cost-effective location, but a talent-led digital powerhouse in ASEAN."
Further amplifying the country's commitment to digital excellence, the GBS Malaysia Mid-Term Report 2025 was officially launched, detailing the sector's remarkable progress since the 2022 strategy launch.
This comprehensive document provides policymakers, investors, and stakeholders with a clear, evidence-based view of the sector’s trajectory and necessary strategic realignment. The report highlights emerging opportunities, identifies critical challenges, and outlines the strategic actions required to ensure the GBS industry remains competitive, resilient, and firmly on track to achieve its ambitious 2027 growth targets.
Key Data from the Mid-Term Report:
- Since the 2022 strategy launch, Malaysia has seen a 66.8% increase in GBS companies, now totaling 749 entities.
- Investments have seen a 13.5-fold surge, rising from RM0.73 billion in 2021 to RM9.87 billion in 2024.
- This expansion has generated over 36,000 high-value jobs and is projected to drive GBS revenue to RM28.14 billion in 2025.
- Malaysia currently ranks 3rd globally in the Global Services Location Index and consistently among the top 3 in ASEAN for digital competitiveness, innovation, and investment confidence.
“Our success will depend on how effectively we integrate technology, knowledge, and human capital into one cohesive, future-ready ecosystem,” emphasized Raymond Davadass, Research Chair of GBS Malaysia. “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, Research Lead and Associate Professor at the University of Nottingham Malaysia added, "The Mid-Term Report is a testament to the powerful synergy between industry, academia, and government. Our collaborative, evidence-based approach provides a robust framework to guide Malaysia's ascent as a leading global GBS hub."
The Summit culminated a high-impact day of regional collaboration and thought leadership, concluding in the evening with the prestigious GBS ASEAN Awards 2025. These awards honoured the outstanding achievements and leadership demonstrated by individuals and corporations across the regional GBS ecosystem. Graced by MA Sivanesan, Deputy Secretary General (Digital Development) of the Digital Ministry, the ceremony celebrated 58 outstanding winners, including 28 individuals and 30 corporations. This achievement is a testament to the GBS sector’s strength, innovation, and contribution to ASEAN’s digital economy.
Anthony Raja Devadoss, Chairman of GBS Malaysia added, “GBS Malaysia’s mission is clear; to position Malaysia as ASEAN’s strategic GBS hub, powered by innovation, talent, and purpose. This Summit provides the perfect platform for ideas to turn into action and the Awards, to celebrate excellence and innovation in the industry.”
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