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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)

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