11 May 2015
Rise in export sales, nett jobs and RM20.09 billion in new investments sees country’s ICT initiatives contributing 1.3% to GDP in 2014.
Kuala Lumpur, May 11, 2015 – The Multimedia Development Corporation (MDEC) today announced MSC Malaysia’s 2014 performance, which showed the country’s premier ICT initiative generating RM38.52 billion in revenue, demonstrating a growth of 11% from 2013.
Alongside strong revenue growth, MSC Malaysia saw RM20.09 billion in new investments, of which 55% came from direct domestic investments and 45% via foreign direct investments. Of the new investments, RM17.16 billion were from current investors while RM2.93 billion were from new investors.
Export sales accounted for a total of RM13.73 billion, representing an 11% increase from 2013, in a year that also saw a 7% rise in employment with 9,497 nett jobs created.
229 new companies were awarded MSC Malaysia status in 2014, bringing the total to 3,632 companies. Overall MSC Malaysia contribution to GDP reached RM13.77 billion, a 14% increase from 2013. MSC Malaysia’s revenue now accounts for a substantial 1.3% of GDP.
Dato’ Yasmin Mahmood, Chief Executive Officer (CEO) of the Multimedia Development Corporation said, “MSC Malaysia has seen a solid performance and consistent growth in 2014, showing the measurable and sustained benefits of the initiative.”
The Creative Multimedia Cluster increased to 436 companies in 2014. The new media sub-sector performed particularly well with 44.6% growth, showing average revenue per company growth of 28%. TV, film and visual effects still account for 90% of CMC revenue, with successes like The Journey; Malaysia’s highest grossing film by Astro Shaw, an MSC Status Company.
The InfoTech Cluster saw the highest number of new companies, up from 2,539 in 2013 to 2,665 in 2014. The banking, financial services and insurance sub-sectors recorded the highest growth of 66%, doubling its revenue from RM671 million in 2013 to RM1.1 billion in 2014, boosted by strong performances from companies such as Infopro and Aetins.
Global Business Services (GBS) not only drove export sales revenue more than any other cluster, it also maintained Malaysia the top 3 position at AT Kearney Global Locations Index for the 11th consecutive year. The cluster benefited from growth in knowledge process outsourcing, showing a 34% export increase year-on-year, and continues to grow global partnerships.
All clusters continued to perform strongly, with the highest revenue reported by InfoTech.
InfoTech cluster saw revenue of RM15.99 billion, 42% of total revenue.
Global Business Services cluster recorded RM13.9 billion, 36% of total revenue.
Creative Multimedia cluster accounted for RM7.1 billion, 18% of total revenue.
Higher Learning and Incubators produced RM1.53 billion, 4% of total revenue.
While the GBS cluster naturally led on export sales, all clusters reported export growth.
GBS generated export sales of RM9.19 billion, a 9% rise on 2013, driven by 34% growth in Knowledge Process Outsourcing companies in the finance and accounting sectors.
The InfoTech cluster recorded export sales of RM3.94 billion, a 13% rise from 2013.
CMC cluster saw a huge 18% increase in export sales, although only representing 4% of total MSC Malaysia export sales.
“While the numbers speak for themselves, we are also proud of MSC Malaysia’s milestones, building strong international partnerships and developing the knowledge of our country’s ICT workers” said Dato’ Yasmin.
MSC Malaysia, moving forward in 2015.
In 2015, MDEC will refocus and realign its efforts to strengthen MSC Malaysia’s industry development. This will be done via deepening existing niches such as strengthening the global business services footprint, making Malaysia a regional hub for games as well as a global hub for cloud and content services. New avenues of industry will also be developed – focusing on big data analytics, e-commerce and the internet of things, offering massive growth potential.
“To move Malaysia up the value chain, it is essential to create more Malaysian global heroes – and for this to happen, MDEC is committed to helping these companies with market access to export their products to the global market” continued Dato’ Yasmin.
Since its inception in 1996 MSC Malaysia has contributed over RM275.04 billion in revenue to the Malaysian economy, RM206.14 billion worth of investments and more than 147,000 jobs.
“MSC Malaysia looks forward to further growth in 2015, and above all a continued commitment to developing ICT and digital skills within Malaysia as the initiative approaches its 20th anniversary in 2016. MSC Malaysia will be crucial as we work towards not only raising the bar of the local ICT industry but also continue to contribute efforts to elevate Malaysia towards a high-income nation by 2020” added Dato’ Yasmin.
For more information please visit www.mscmalaysia.my.