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<strong>ETP</strong> ANNUAL REPORT 2011<br />
EPP 2 (continued from previous page)<br />
On attracting FDI, Malaysia continues to attract global service<br />
operations from multinational firms. This is due to Malaysia’s<br />
key strengths on global business services namely, serving Asian<br />
markets, high value activities and as a ‘best-shore’ 1 location.<br />
Malaysia attracted almost 20 new projects in 2011 into the country<br />
with commitments of over 5,300 new high value jobs including<br />
multinationals such as IBM, Paypal, Schlumberger and Eli Lilly.<br />
Moving Forward<br />
In 2012, MAMPU will conduct a Government-wide study to<br />
pinpoint duplication across non-core business process. The<br />
result of the study will lead to the setting up of a governmentshared<br />
service centre. The design and implementation of the<br />
centre will be supervised by a Project Management Office based<br />
on a public-private partnership, with MAMPU being the central<br />
coordinating agency.<br />
1 Secondary site to locate high value activities to a primary major location<br />
EPP 3<br />
Positioning Malaysia as a World-Class<br />
Data Centre Hub<br />
Data Centres are secure facilities used to house computer systems<br />
such as telecommunications equipment, servers, storage and<br />
associated computing components – equipped with redundant/<br />
backup power supplies, data and internet communication<br />
infrastructure, environmental controls systems and security<br />
devices. The data centres industry in Asia Pacific is expected to<br />
grow by 16.3 per cent annually, reaching RM10.9 billion by 2014 2 .<br />
Malaysia has the potential to emerge as a world-class data centre<br />
hub. This is defined as having a significant share of Asia Pacific’s<br />
data centre revenue, credible local data centre service providers<br />
and a recognised capability in providing high-value managed<br />
services.<br />
The EPP aims to establish Malaysia as the preferred destination for<br />
data centre investors and increase the supply of data centre space<br />
in Malaysia from 0.5 million square feet to 5.0 million square feet<br />
by 2020.<br />
Achievements<br />
In 2011, this EPP outperformed its target of developing new<br />
data centre space by over 210 per cent with the establishment<br />
of four data centres that have a combined investment value of<br />
RM770 million in mainly infrastructure outlay. One of the four<br />
data centres has been completed and launched in January 2012<br />
with the remaining three at an average completion rate of over 40<br />
per cent. These data centres are expected to be fully operational<br />
between the first and second quarters of 2012, providing over 350<br />
jobs, mainly in technical and engineering fields.<br />
2 Strategic Analysis of the Asia Pacific Infrastructure Hosting<br />
Markets, Frost & Sullivan, Feb 2009<br />
144<br />
In promoting global awareness as well as the capability and<br />
credibility of the Malaysian outsourcing industry, MDeC and<br />
Outsourcing Malaysia will continue to work together to further<br />
implement the programmes in these areas. This includes<br />
promoting local outsourcing industry players to MNCs already<br />
located in Malaysia. To stimulate growth, the MDeC project team<br />
will conduct up-sell and cross-sell activities in cooperation with<br />
local players. The project team will also work with outsourcing<br />
players to help them acquire more business from their existing<br />
client base. Despite having the highest salaries, exciting projects<br />
and greater career prospects, there is a misperception that the<br />
outsourcing industry is not appealing. To address this, the project<br />
team will launch a major programme in 2012 in collaboration with<br />
multinational firms to promote the outsourcing industry as the<br />
employee’s industry of choice in Malaysia.<br />
In encouraging industry-wide collaboration and alliances to<br />
develop the local data centre industry, a data centre Focus<br />
Group comprising local member companies coordinated by<br />
Outsourcing Malaysia was established. It is a business-led group<br />
set up in 2011 to:<br />
• represent the industry to market Malaysia as a preferred data<br />
centre hub<br />
• develop and sustain data centre knowledge exchange<br />
initiatives (i.e. conferences, white papers, workshops etc.)<br />
• champion issues related to the data centre industry<br />
In addition, MDeC and Outsourcing Malaysia organised the Data<br />
Centre Summit on April 2011. The Summit serves as a platform<br />
for members of the global data centre fraternity to understand<br />
the challenges and issues confronting the industry, identifying<br />
ways to reduce impediments and roadblocks as part of continued<br />
efforts to reduce the current fragmentation.<br />
Teliti Data Centre<br />
(more on next page)