Malaysia as the rising global digital GBS hub powering next-generation investments

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THE recent GBS ASEAN Summit 2025 has 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 Oct 30 under the theme GBS 5.0: Human-Centric, AI-Driven, Impact-Focused, the event 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.

As stated by Digital Minister Gobind Singh Deo in his officiating address, the GBS sector is a critical pillar of Malaysia’s digital economy for it is capable of driving vast digital investment and creating high-value employment opportunities across the nation.

The MOA between GBS Malaysia and UKM is a crucial step to future-proof the GBS industry, thus creating a national talent pipeline to meet the rapid demand for high-value skills.

This partnership thus establishes a direct bridge between GBS companies and undergraduates to ensure that university curricula are aligned with industry needs in areas such as artificial intelligence (AI), data analytics and digital operations.

“This strategic MOA with UKM is the definitive blueprint for future-proofing our industry’s human capital,” enthused PIKOM chairman Adjunct Practice Prof Alex Liew.

“As the GBS sector’s growth is directly tied to a future-ready talent pipeline, aligning university curricula with high-value demands like AI and data analytics will ensure Malaysia remains not just a cost-effective location but a talent-led digital powerhouse in ASEA.”

Further amplifying the country’s commitment to digital excellence, the GBS Malaysia Mid-Term Report 2025 detailed the industry’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 that the GBS industry remains competitive, resilient and firmly on track to achieve its ambitious 2027 growth targets.

Key data from the Mid-Term Report are as follows:

Since the 2022 strategy launch, Malaysia has seen a 66.8% increase in GBS companies which now total 749 entities.
Investments have seen a 13.5-fold surge, rising from RM730 mil in 2021 to RM9.87 bill in 2024.
This expansion has generated over 36,000 high-value jobs and is projected to drive GBS revenue to RM28.14 bil in 2025.
Malaysia currently ranks third globally in the Global Services Location Index and consistently among the top three 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,” envisages GBS Malaysia Research chairman Raymond Davadass.

“By bridging talent gaps and advancing collaboration, Malaysia is poised to become a global centre of excellence for digital innovation, service delivery and sustainable growth.” – Nov 5, 2025

The post Malaysia as the rising global digital GBS hub powering next-generation investments first appeared on Focus Malaysia.

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